Israeli Auto Appraisers Earn Between NIS 450-1,500 Per Report, With Most Going to Expenses
For the first time, the fees paid to auto appraisers in Israel are becoming transparent, thanks to a new regulation requiring insurance companies to publish the reasonable fees they paid to private appraisers in the preceding year. Three companies have complied, revealing a range of payments based on the vehicle's damage.
For damages up to NIS 10,000, appraisers can receive up to NIS 750. This increases to NIS 1,000 for damages between NIS 10,000 and 15,000, NIS 1,200 for NIS 15,000-20,000, NIS 1,300 for NIS 20,000-50,000, and up to NIS 1,500 for damages exceeding NIS 50,000. Another company reported actual cases, showing lower payments, with one instance of a NIS 14,891 damage claim resulting in only NIS 397 paid to the appraiser.
A significant finding from a 2010 court case indicates that out of an average report fee of NIS 413, only NIS 184 was professional remuneration, with the rest covering expenses like travel and office operations. This structure, where over half the payment covers overhead, remains relevant today, as physical inspections are required, consuming considerable time and resources.
Israel has 1,019 licensed auto appraisers, handling approximately 414,000 property damage claims annually. This averages to about 406 claims per appraiser per year, or roughly eight per week. Gross annual revenue, based on the lower end of reported fees, could range from NIS 260,000 to NIS 278,000 before VAT, but this figure is a rough estimate and does not account for significant business expenses.
The income of an auto appraiser is largely determined by their client base. Those on insurance companies' approved lists receive a steady stream of cases at set rates, while independent appraisers hired directly by claimants can potentially charge more but must actively seek clients and negotiate fees. The new transparency regulation allows clients to compare rates, with one company even advising claimants to obtain multiple quotes.
