Appraisal Clause 101
How it Works
How the Auto Glass Claim Appraisal Process Works?
When a glass repair shop who is typically not on a preferred glass replacement program (GRP) with an insurance carrier submits an invoice for payment on a glass repair or replacement service and the insurance company believes that the invoiced amount for services is higher than what other PREFERRED GLASS REPLACEMENT PROGRAM shops are billing, then the insurance carrier will invoke the appraisal clause and demand that both the insurance company and the auto glass shop hire their own independent glass appraisers to negotiate and settle the difference in values.
In order to ensure that the shop is qualified to invoke or participate in the appraisal clause process, the insured must sign over their rights of benefits to the auto glass shop performing the repairs.
This rights of benefits verbiage should always be on the auto glass repair shops invoice and signed at the time of service. If the rights of benefits are not signed over to the auto glass repair shop, then the insurance carrier can formally deny the claim and refuse to participate with the glass shop or their attorney in the appraisal clause process. During that time-frame, the glass shop may receive a partial payment for services and will not receive any additional amount until the appraisal clause has been invoked.
The next step for both the insurance company and the glass shop to hire their own independent appraiser to settle the difference in the appraised amount.
Each appraiser must state separately the amounts as listed below:
Typical Demand for Appraisal
Percentage off Nags if any
Percentage off Moldings
Per Hour Labor Rate
$ amount for Flat kit
$ amount for High Modulus Kit
$ amount for Repairs, if any
Perfect Example of Good Settlement
Nags – 5% off
Moldings – 0% Off
Labor Hours - $85.00
Flat Kit - $50.00
High Modulus Kit - $60.00
Repairs - $100.00
*Please note that settlement amounts will have a range.
Once the seated umpire has ruled on their award, the ruling is binding and the claim is closed. At that point the auto glass shop would receive their checks for the additional amounts awarded by the seated umpire.
Auto Glass Claims Services has assisted our clients and their attorneys recover over $1 Million dollars in lost revenue as a result of the appraisal clause and we can do the same for you.
* The National Auto Glass Specifications (Nags) is a widely used specification that insurance carriers have used for years in determining glass repairs prices, replacement costs, and labor rates based on a industry standards. Nags is like the Kelley Blue Book or NADA for the auto glass industry therefore it is only to be used as a guide and cannot be used as a true and hard fact in determining each independent glass repair shops prices based on a discount criterion.