Short Answer

In North Carolina, you generally do not have to hire or pay an appraiser just to keep negotiating a claim. But if the policy’s appraisal clause is invoked (by you or by the insurer through a proper written demand), the usual rule is that each side pays its own appraiser and splits the umpire’s fee. Appraisal is a contract process tied to your policy; cost-sharing follows that clause.

Understanding the Problem

You want to know whether, in North Carolina, you must pay for your own appraiser before settling a property damage claim from a car accident. The insurer says each side must pay its own appraiser and split the umpire. This turns on the policy’s appraisal clause: when it applies, who can demand it, and when you must participate.

Apply the Law

Most North Carolina auto policies include an appraisal clause for disputes about the amount of loss to your vehicle. Appraisal is a contract-based, out-of-court process that decides value, not coverage. The forum is private (your chosen appraiser, the insurer’s appraiser, and a neutral umpire). Deadlines and cost-sharing are set by the policy, and they are often short once a written appraisal demand is made.

Key Requirements

• Disagreement on amount of loss: There must be a genuine dispute about the repair cost or value, not about what the policy covers.
• Written demand per the policy: Appraisal starts only if a party makes a written demand that follows your policy’s steps and timelines.
• Each side selects an appraiser: You name a competent, independent appraiser; the insurer names its own within the policy’s timeframe.
• Umpire process: The two appraisers pick a neutral umpire (or a court may appoint one if they can’t agree, as your policy provides).
• Who pays: Typically, you pay your appraiser; the insurer pays its appraiser; both split the umpire’s fee.
• Scope of decision: The appraisal award sets the amount of loss; it does not decide coverage or liability disputes.

What the Statutes Say

• North Carolina Gen. Stat. § 58-63-15 (Unfair claim settlement practices) - sets standards for fair claim handling and negotiations by insurers.
• North Carolina Gen. Stat. § 75-1.1 (Unfair or deceptive acts or practices) - provides a general consumer protection framework that can apply to insurance claim conduct.

Analysis

Apply the Rule to the Facts: If your insurer has not issued a proper written appraisal demand, you are not required to hire or pay an appraiser just to keep negotiating or seeking supplemental estimates. If the insurer makes a valid written demand under your policy, you typically must name and pay your own appraiser and split the umpire fee before a court will hear a dispute over the amount of loss. If the disagreement is about what the policy covers (not the dollar amount), appraisal may not be the right process.

Process & Timing

1. Who files: The party seeking appraisal. Where: Send a written appraisal demand to the insurer at the address specified in the policy. What: A clear “Appraisal Demand” citing your policy’s appraisal clause and naming your chosen appraiser. When: After an amount-of-loss dispute arises and within the policy’s stated deadlines.
2. Once a demand is made, each side names its appraiser within the policy’s timeframe. The appraisers inspect the vehicle, exchange estimates, and attempt to agree. If they cannot, they select a neutral umpire as the policy provides.
3. The appraisers submit differences to the umpire, who issues an award on the amount of loss. The insurer then adjusts the claim to the award subject to coverage terms.

Exceptions & Pitfalls

• If the dispute is about coverage (what the policy pays for) rather than price, appraisal may not apply—press for a coverage decision instead.
• Do not miss policy deadlines to name an appraiser; delay can pause your claim or jeopardize your position.
• Choose a truly independent, qualified appraiser; conflicts or inexperience can undermine the process.
• Weigh cost versus benefit; the umpire fee and your appraiser’s fee should make economic sense compared to the amount in dispute.
• Confirm any appraisal demand is in writing and compliant with the policy before you incur costs.

Talk to a Personal Injury Attorney

If you're dealing with a low valuation and pressure to start appraisal, 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.