Significance

• Most auto appraisers work directly for insurance companies. They are often contracted to examine damaged vehicles at auto repair shops to determine the cost of repairs and how much an insurance company will be liable for. Others are independent contractors that may provide their assessments to banks, insurance companies, repair shops, customers and others. Some people will want to get opinions from multiple appraisers in order to try to save money.
  
  

Types

• Other auto appraisers work primarily for used car dealerships or service the vintage car hobby community. These appraisers are primarily interested in determining how much a car is worth, although ultimately, the price an appraiser tacks on a vehicle is meaningless. It is only a guide to people selling or repairing a vehicle. The only determinant of a vehicle's price is what someone will be willing to pay for it at the time of the transaction.
  
  

Considerations

• There are no legal requirements for licensing to become an auto appraiser, but in order to secure employment as one, some education--and a passion for cars--will be necessary for success. Insurance companies are not likely to contract with an appraiser who has no experience and can't fill out a car report form properly. Some common ways to gain more on-the-job experience with auto appraisal are to work for an insurance company, an auto repair shop or a car dealership.
  
  

Expert Insight

• The Kelly Blue Book is the commonly accepted source for the value of used vehicles. However, there is more to being an auto appraiser than simply referencing that text regularly. A good deal of familiarity with the expense of repairs, replacement parts and other issues with particular reference to the appraiser's area of operation will be helpful. An appraiser is only successful if he keeps everyone that he contracts with relatively happy with his work. He's aiming for regular accuracy in his judgments as to what the market will be willing to provide.
  
  

Prevention/Solution

• There are many different competing auto appraisal certification organizations, but there is no central board for determining skill in auto appraisal. For most directly contracted appraisers, it may be beneficial to largely ignore advertisements of certification and to instead ask for references. Ask the appraiser if he has experience with the particular service for which you're contracting him. Ensure that he is trustworthy, particularly if you're not able to see the vehicle yourself--such as when buying a car online.