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When your car is declared a total loss, it can be frustrating especially if the insurance company undervalues it. In Florida, policyholders have the right to dispute a total loss offer under the appraisal clause, but this must be done before accepting payment. This guide explains the process, your rights, and how Auto Praise helps clients secure fair settlements.
Understanding Florida’s 80% Total Loss Rule
Florida law defines a vehicle as a total loss when the cost to repair equals or exceeds 80% of the pre accident actual cash value (ACV). Once this threshold is reached, insurers settle based on the vehicle’s value instead of repairing it.
See also: Florida total loss law explained
First Party vs. Third Party Claims: Know the Difference
A first party claim is filed through your own insurance policy. In these cases, the appraisal clause gives you the right to challenge the insurer’s valuation and hire an independent total loss appraiser like Auto Praise.
Third party claims, however, are filed against the at-fault driver’s insurer. The appraisal clause does not apply in this scenario. You can still obtain an independent appraisal, but the insurer isn’t required to accept it or negotiate based on its findings.
You must invoke the appraisal clause before accepting payment for the total loss. Once you cash or accept the check, you lose this right.
When the Insurance Company Gets It Wrong
Auto Praise was hired by a client who owned a Ford F150 Black Ops Edition that had been declared a total loss. The insurance company’s valuation was based on standard F150 models and didn’t recognize the higher value of the Black Ops Edition. After conducting an independent total loss appraisal, Auto Praise presented evidence of the true market value. As a result, the vehicle owner received an additional $15,217 a significant correction to the insurer’s original offer.
What Happens if You Keep the Vehicle
When you retain ownership of a totaled vehicle, your payout is reduced by its salvage value. You’ll need to obtain a salvage title and have the vehicle inspected before it can be driven again. After passing inspection, the title will be branded as ‘Rebuilt.’ Keep in mind, rebuilt titles lower resale value and can make insurance coverage harder to obtain.
When to Hire a Total Loss Appraiser
If your insurer undervalued your vehicle, missed factory options, or ignored special editions, hiring a certified appraiser can help. Independent appraisers provide USPAP compliant reports using real market data to support negotiations.
Auto Praise’s appraisers are IACP Certified, Florida Licensed Adjusters, and ICar Platinum Certified Auto Physical Damage Appraisers. With over 30 years in the automotive field, we have the expertise to secure fair and accurate valuations.
What to Look For in an Appraisal Firm
When choosing an appraisal firm, verify the following credentials:
• IACP Certified Auto Appraiser
• Florida Licensed Insurance Adjuster
• ICar Platinum Certified Appraiser
• USPAP Compliant Reporting
• Proven Experience in Negotiating Total Loss Claims
Key Takeaways
• Florida’s total loss threshold is 80% of ACV.
• Only the insured (first party) can invoke the appraisal clause.
• The clause must be used before accepting payment.
• Salvage retention requires a rebuilt title and lowers resale value.
• Certified appraisers ensure fair, accurate valuations.
For more information, visit the Florida Department of Financial Services Consumer Resources page: https://www.myfloridacfo.com/Division/Consumers/
What is Florida’s 80% total loss rule?
A vehicle is considered a total loss when repair costs reach 80% or more of its pre-accident ACV.
Who can invoke the appraisal clause?
Only the insured on a first-party claim can do so before accepting payment from the insurance carrier.
Can I dispute a total loss after accepting payment?
No, once payment is accepted, you can’t challenge the insurer’s offer.
What happens if I keep my totaled car?
You’ll need a salvage title and state inspection before driving it again, and it’ll carry a rebuilt title. The insurance company will deduct the salvage amount from the final amount that they pay you on the total loss claim.
What qualifications should a total loss appraiser have?
Look for IACP/IAAA certified appraisers, I-Car Platinum, and Florida Adjuster certifications.