Oregon Appraisal Clause FAQ
What is the Oregon Appraisal Clause?
The "Oregon Appraisal Clause" is a section of most personal Oregon auto insurance policies. This section covers the use of appraisals for disputing diminished value or total loss claims. As of January 1st, 2010, all new or renewing personal vehicle auto insurance policies must have this section.
The appraisal clause guarantee's the driver the right to have an independent appraisal. If the appraisal shows the insurance company offered less than the actual diminished value, the insurance company has to pay for the appraisal too.
This is a typical example as described by Oregon's Division of Financial Regulation:
If you do not agree with the value your own company offers, your policy may include an appraisal provision. Appraisal processes vary. Check your policy or ask the claims representative. Typically:
- You get an appraisal (you pay).
- The company gets an appraisal (it pays).
- If the appraisers don’t agree on the value, the two appraisers agree on an umpire. You and the company each pay half of the umpire’s cost.
Insurance companies must reimburse you for reasonable appraisal costs if the final appraised value of your vehicle is higher than the company’s last offerOregon DFR Totaled Vehicle Information
In Oregon, independent appraisals must be performed by a certified vehicle appraiser. ORS 819.480 goes into detail about vehicle appraiser certificates. If you have more questions about the appraisal clause read on. If you'd like to talk to an attorney, call us now for a free personal injury consultation. A personal injury attorney can answer your questions about the appraisal clause and help you start the process.
What Is An Appraisal?
An appraisal is an act of determining how much something is worth. Obviously anyone can give an estimate of an item's value. However, vehicle appraisals in Oregon must be certified. Various autobody shops provide vehicle appraisals as a service.
So in this context, after an accident to your vehicle, an appraisal is when you pay for a certified vehicle appraiser to inspect your vehicle. In return, they give you an estimate of the vehicle's worth after the crash. This helps you determine the vehicle's diminished value due to the accident.
How Do You Invoke An Appraisal Clause?
An insurance policy should have specific language regarding how its appraisal clause is invoked. If the insurance policy does not contain this language, it defaults to rules adopted by the Director of the Department of Consumer and Business Services. Our experienced diminished value lawyers can help you determine how to specifically invoke your appraisal clause. Remember consultations are free and come with no obligations.
Do All Insurance policies have an appraisal clause?
Most, if not all, personal auto insurance policies in Oregon have an appraisal clause. Appraisal clauses are required in new/renewed auto-insurance policies in Oregon since January 1st, 2010. If for some reason the clause was not properly added, it defaults to rules adopted by the Director of the Department of Consumer and Business Services. Many other states have appraisal clauses as well.
Is Oregon a diminished value state?
Yes, Oregon is a "Diminished Value State". Oregon law covers requirements for paying diminished value on a vehicle. Oregon law also covers independent vehicle appraisals. Additionally, Oregon law states the requirements to be a vehicle appraiser.
ORS 742.466 | Disputes over coverage for physical damage
ORS 742.466 is one of the primary Oregon laws regarding disputes over coverage for physical damage. Oregon House Bill 2190 amended the provisions of ORS 742.466 in 2009. Additionally, HB 2190 added language to Oregon's insurance code regarding appraisals and disputing them. Understanding how laws affect you can be difficult. We have experienced personal injury lawyers that can help. Call for a free consultation and get the process started. Don't miss a deadline!