Short Answer

In North Carolina, if your own policy’s appraisal clause is in play and the supplement still underpays, you can proceed to an umpire. Each side typically pays its own appraiser and splits the umpire’s fee, and the umpire’s decision on the amount of loss is binding. If this is a claim against the other driver’s insurer, the appraisal clause usually doesn’t apply; you can keep supplementing, use your collision coverage, file a complaint with the Department of Insurance, or sue for property damage.

Understanding the Problem

You’re asking: in North Carolina, how can I close the gap between the shop’s actual repair cost and the insurer’s supplement appraisal? You are the insured/claimant seeking payment for auto body repairs. The next decision is whether to push the policy appraisal process to an umpire or pivot to other remedies. One key fact here: the insurer says each side must pay its own appraiser and split the umpire fee.

Apply the Law

North Carolina policies often include an appraisal clause for first-party disputes over the amount of loss (not coverage or fault). Each side chooses a competent, independent appraiser; the appraisers select a neutral umpire; and any two of the three set the amount of loss. Policy language usually assigns costs so each party pays its appraiser and splits the umpire. For third-party claims (against the at-fault driver’s insurer), the appraisal clause generally doesn’t apply. The overarching rule for property damage is payment of reasonable repair costs to restore the vehicle, and insurers must handle claims in good faith under North Carolina law.

Key Requirements

• Appraisal applies to amount of loss only: It does not decide fault, coverage, or legal liability.
• Independent appraisers and neutral umpire: You and the insurer each pick an appraiser; the two appraisers pick an umpire.
• Costs are typically split as the policy states: You pay your appraiser; the insurer pays theirs; you split the umpire.
• Documentation drives value: Detailed shop estimates, photos, OEM procedures, and supplements for hidden damage are essential.
• Third-party claims are different: If you’re claiming against the other driver’s insurer, appraisal usually doesn’t apply; negotiation, your own collision coverage, or a lawsuit are the tools.

What the Statutes Say

• N.C. Gen. Stat. § 58-63-15(11) (Unfair claim settlement practices) - Bars certain claim handling conduct and requires good-faith adjustment.
• N.C. Gen. Stat. § 6-21.1 (Attorney’s fees in certain injury/property damage suits) - Allows fee awards at the court’s discretion in some lower-dollar damage cases.

Analysis

Apply the Rule to the Facts: Because the insurer is invoking the typical cost split for appraisal and an umpire, this appears to be a first-party amount-of-loss dispute. To close the shortfall, move the appraisal to an umpire with strong documentation from your repair facility (procedures, parts, labor times, and supplements). If it’s actually a third-party claim, the appraisal clause likely doesn’t control; consider using your collision coverage to repair the car while your insurer seeks reimbursement, or file a property damage claim in court if negotiations stall.

Process & Timing

1. Who files: You (the insured/claimant). Where: Send a written appraisal demand to your insurer per your policy. What: Name your appraiser and attach detailed estimates, photos, and any supplements from the shop. When: Follow your policy’s appraisal time limits; act promptly.
2. Next: Your appraiser and the insurer’s appraiser select an umpire. They inspect estimates, damage, and repair procedures. If the two appraisers disagree, any two (including the umpire) set the amount of loss. This step can take weeks depending on scheduling and county practice.
3. Final: Receive the appraisal award. If still unresolved or this is a third-party claim, file a complaint with the North Carolina Department of Insurance or file a property damage lawsuit in the Small Claims Division of District Court in the proper county. Typical lawsuit deadlines for property damage in North Carolina are three years, but confirm the rule for your case.

Exceptions & Pitfalls

• Appraisal will not resolve coverage disputes or fault; it addresses only the amount of loss.
• Third-party liability claims generally are not subject to your policy’s appraisal clause.
• Choose an appraiser who is independent; avoid anyone who could be challenged for bias.
• Do not sign a broad release that cuts off supplements or diminished value unless you intend to end the claim.
• Hidden damage arises after teardown; promptly submit supplements with supporting documentation.
• Policy and deadlines vary; missing an appraisal timeline can waive that remedy.

Talk to a Personal Injury Attorney

If you're dealing with a repair estimate that won’t cover the real cost, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.