It seems like every other call or request we got this past two months has been a hail damage total loss claim or someone with a total loss that wanted to keep the wrecked vehicle. There are a lot of issues that come along with keeping the wrecked vehicle aka salvage and the first one may be with your very own carrier.

In our latest post, Justin discusses the issues our clients have dealt with when trying to retain their salvage.

Hail, Salvage Retention & the Appraisal Clause

After a vehicle crash or a damaging storm, if your insurance company deems your vehicle a total loss and makes you an offer to settle the value which you believe is low, you generally have the ability to use the appraisal provision of your policy to resolve the disputed value. 

In its simplest form, the clause says that both you and your insurance company have to hire your own appraisers and agree to let the appraisers decide the value.  This remedy to a low total loss settlement offer is also known as invoking the “appraisal clause”, or in some instances invoking the “right to appraisal”.  It is a great way to resolve most disputed (first party) total loss settlements.   

So that’s seems pretty straightforward, right? 

If you disagree with your insurance carrier as to the settlement amount, you can invoke the appraisal clause to resolve the issue.  You’d be right, it is pretty straightforward, but ONLY if you don’t want to keep and repair (or not if hail) your totaled vehicle, also known as retaining the salvage.

If you have the right to and elect to retain your total loss vehicle, then the insurance company will deduct from your settlement the salvage value of your vehicle. It should be as simple as that but things can get sticky fast.

Click below to read more of Justin’s in depth discussion on issues you may run into when trying to retain your salvage!