Starting in 2027, Illinois auto policies allow appraisals for disputed losses
Starting July 1, 2027, covered Illinois auto policies give the insured person and insurer a way to seek an appraisal over a disputed vehicle loss amount.
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What it does
For covered vehicle damage, either the insured person or the insurer may request an appraisal if they disagree about the loss amount. The insured person does not need the insurer’s agreement.
Each side must choose an appraiser within seven business days of a written request. If the appraisers cannot agree on the loss amount within five business days, they choose an umpire to help decide it.
Each side pays for its own appraiser, and the two sides split the umpire’s cost equally.
Argument forDrivers may seek an independent decision about a disputed vehicle loss amount without first getting the insurer’s agreement.
Argument againstDrivers may pay for their own appraiser and half the umpire’s cost, even when the appraisal does not change the insurer’s decision.
More detail
The law gives the insured person and the insurer the right to request an appraisal when they dispute the amount of a loss. This applies to Illinois auto insurance policies issued, renewed, or delivered on or after July 1, 2027. The policy must include first-party coverage for physical damage. The right applies to policies issued, renewed, or delivered on or after July 1, 2027.
The law sets a process for appraisers and, when needed, an umpire to decide the loss amount. Each side chooses one appraiser. If they disagree on the loss amount, the appraisers choose a neutral, qualified umpire. Each appraiser must have relevant training and experience and no financial interest in the outcome. If the appraisers cannot agree on an umpire within 15 business days, either side may ask a court to appoint one. An agreement by any two of the three decision-makers binds both sides. Appraisers must be chosen within seven business days of the written request. If an umpire is selected, the final award is due within five business days.
Each side pays for its own appraiser and half the umpire’s cost. These costs apply to both sides in an appraisal.
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