Short Answer

In North Carolina, you generally trigger an auto policy’s appraisal clause by sending a written demand after a clear disagreement about the “amount of loss,” naming a disinterested appraiser, and asking the insurer to name theirs. The two appraisers select a neutral umpire and set the vehicle’s value; an award signed by any two of the three is typically binding on value. Appraisal decides value only—it does not decide coverage or fault.

Understanding the Problem

You want to know how, in North Carolina, a policyholder can start the appraisal process to settle a dollars-and-cents dispute over vehicle value under an auto policy. The policyholder asks, “How do I invoke appraisal to resolve our valuation dispute now that the insurer’s offer is much lower than a neutral appraisal?” This is about using the contract’s appraisal mechanism—not suing—and it focuses on value, timing, and the steps to get a binding number.

Apply the Law

Under North Carolina law, appraisal is a contract remedy built into many auto policies to resolve disputes about the amount of loss (for example, repair cost, actual cash value, or diminished value) after coverage for the claim is acknowledged. The policy language controls the process. Typically, the insured and insurer each choose a disinterested appraiser; those appraisers choose an umpire; and a written award signed by any two is binding on value. Courts can help with appointments or enforcement if the other side won’t participate, but appraisal does not decide liability or coverage issues.

Key Requirements

• Disagreement on amount of loss: A real, documented dispute about value (not coverage) must exist.
• Written demand per policy: The insured sends a written request invoking appraisal exactly as the policy requires.
• Disinterested appraisers: Each side selects a neutral, qualified appraiser with no stake in the outcome.
• Umpire selection: The two appraisers choose a neutral umpire; if they cannot, a court can be asked to appoint one.
• Binding value award: Any two of the three (either both appraisers or one appraiser plus the umpire) sign a written award that sets the amount of loss.

What the Statutes Say

• North Carolina Gen. Stat. Chapter 58 (Insurance) - Sets statewide rules for insurers and claims handling; your policy’s appraisal clause operates within this framework.
• North Carolina Revised Uniform Arbitration Act (Article 45C) - Provides court procedures that can be used when a contract calls for a binding out-of-court valuation process (e.g., appointing a neutral if the parties cannot agree).
• NC Department of Insurance – Auto Insurance - Consumer-facing guidance on claims, valuations, and how to seek help if negotiations stall.

Analysis

Apply the Rule to the Facts: You have a diminished value claim, a neutral appraisal supporting a higher value, and the insurer offered much less. That is a clear dispute about the amount of loss. A written appraisal demand that names your disinterested appraiser and requests the insurer to name theirs should move the process forward. If the policy’s language allows appraisal of diminished value (many do), a two-signature award will bind the valuation number even if you and the insurer do not agree during negotiations.

Process & Timing

1. Who files: The policyholder. Where: Start by sending a written demand to the insurer’s claims address in North Carolina (use certified mail or email per policy). If an umpire must be appointed or the other side refuses to participate, file a short petition in the Superior Court for your county. What: Written “Appraisal Demand” under your policy; later, a petition to appoint an umpire or to compel participation if needed. When: Send the demand promptly after the valuation dispute arises; many policies set short naming deadlines, so follow your policy’s timing exactly.
2. Select your disinterested appraiser and disclose their contact information and resume. Ask the insurer to name its appraiser within the policy’s timeframe. The two appraisers confer and pick an umpire; if they cannot agree, request a court appointment.
3. The appraisers inspect the vehicle (or repair records and market data) and exchange comparables and estimates. If they agree, they issue a signed award. If they disagree, the umpire reviews and any two sign a written award setting the amount of loss; the insurer then adjusts payment per the policy.

Exceptions & Pitfalls

• Coverage vs. value: Appraisal decides amount of loss, not coverage or liability. Preserve any coverage defenses or rights in your demand letter.
• Diminished value scope: Confirm the policy’s wording allows diminished value to be appraised; some forms restrict how loss is measured.
• “Disinterested” means neutral: Avoid using a repair shop or consultant with a financial stake. That can jeopardize the award.
• Umpire stalemate: If appraisers cannot agree on an umpire, promptly seek a court appointment to avoid delay.
• Cost allocation: Expect to pay your appraiser; the umpire’s fee is usually split. Confirm this in writing when you invoke appraisal.
• Documentation: Provide complete repair records, photos, market comps, and expert opinions your appraiser can use to support the valuation.

Talk to a Personal Injury Attorney

If you're dealing with a stubborn vehicle valuation dispute and need to invoke your policy’s appraisal clause, 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.