Arbitrators Mililani HI

By Dennis Howard
10/1/2003

Scenario: A first-party insured with collision coverage brings his damaged car to you for repairs. Your estimate comes to $3,501. The insurer has "appraised" (a.k.a "estimated") the cost of repair at $2,255. Reinspections and supplementals have been exhausted, and there's still a sizeable gap between the actual cost of repair and what the insurer is willing to pay.

Before you throw up your hands and either eat the shortfall or attempt collection from the owner (leading to a possible replevin action), there is an alternative.

Some shops are aware of a clause in the policy whereby settlement value disputes can be resolved via "appraisal" or "arbitration." While these shops are in the minority, the vast majority of even those shops don't understand how the process works or how it can be utilized to benefit their customers and themselves.

Benefiting From the Appraisal Clause Process
Tip No. 1: You, as the repairer, shouldn't attempt to represent your customer because you could be disqualified as not being "disinterested." Find another individual in your area whom you can rely on to be a "competent and disinterested" appraiser. Your options here could include (but not be limited to) an independent appraiser, a former or retired appraiser, a body tech at a reputable competing facility, a former or retired body tech, a former or retired service writer or mechanic, an instructor at a local vo-tech training facility or any other individual who...