Short Answer

In North Carolina, you can only force an appraisal if your own auto policy has an appraisal clause that applies to the disputed “amount of loss.” That clause binds you and your insurer—not the at-fault driver’s insurer. Appraisal decides value, not coverage or fault, and you must follow the policy’s steps and timelines. If no applicable clause exists (or this is a third‑party claim), your options are negotiation, mediation, or filing a lawsuit.

Understanding the Problem

You’re asking whether, in North Carolina, you can require a neutral appraiser to set the value of diminished value when you and the insurer can’t agree. You are the claimant, you want the insurer to use a neutral, and the trigger is a disagreement over a diminished value figure after your independent appraisal came in higher than the insurer’s offer.

Apply the Law

Under North Carolina law, an appraisal is a contract right. Most auto policies allow either party to demand appraisal when the dispute is the amount of loss (how much), not whether the policy covers diminished value at all (coverage). Appraisal typically works this way: each side picks an appraiser; those appraisers try to agree; if they cannot, they select an umpire who issues a binding valuation on amount. That process only applies to first‑party claims under your policy. It does not bind a third‑party insurer for the at‑fault driver because you are not a party to that contract. If you file suit, North Carolina courts commonly require mediation; arbitration is generally non‑binding unless both sides agree in writing to make it binding.

Key Requirements

• Appraisal clause in your policy: Your ability to compel appraisal comes only from your own policy’s language.
• First‑party property claim: The clause binds you and your insurer; it does not force the at‑fault driver’s insurer to participate.
• Dispute limited to amount of loss: Appraisal values the loss; it does not decide fault or whether diminished value is covered.
• Written, timely demand: Follow the policy’s notice steps and time limits to invoke appraisal.
• Neutral selection process: Each side picks an appraiser; they choose an umpire if needed. The umpire’s award on value is typically binding under the policy.

What the Statutes Say

• North Carolina Gen. Stat. § 7A‑38.1 (Mediated settlement conferences) - Courts commonly order mediation in civil cases once you file suit.
• North Carolina Gen. Stat. § 1‑52 (Limitation of actions—three years) - Contract suits (including many policy disputes) generally face a three‑year limit; exact timing depends on the claim.
• North Carolina Gen. Stat. § 58‑63‑15(11) (Unfair claim settlement practices) - Bars certain unfair claim practices; may be relevant leverage if negotiations stall.

Analysis

Apply the Rule to the Facts: You already obtained an independent appraisal above the insurer’s offer. If this is a first‑party claim under your auto policy and your policy covers diminished value or allows appraisal on “amount of loss,” you can demand appraisal in writing and follow the clause’s steps. If you are pursuing only a third‑party claim against the at‑fault driver’s insurer, you cannot force their policy’s appraisal; your choices are continue negotiating, mediate, or sue.

Process & Timing

1. Who files: You (or your attorney). Where: Start with your own insurer, per your policy. What: Send a written demand invoking the policy’s appraisal clause; name your chosen appraiser as the clause requires. When: Do this promptly; policies set specific notice steps and deadlines, and contract claims generally face a three‑year limit.
2. If the two appraisers cannot agree on an umpire, use the policy’s method to request court appointment of an umpire in the county where the loss occurred. Local timing varies.
3. Once the umpire issues an award on the amount of loss, the insurer typically pays that figure if coverage applies. If coverage is disputed, you may still need to litigate that separate issue.

Exceptions & Pitfalls

• Third‑party only: You cannot force the at‑fault driver’s insurer into appraisal; the clause is a contract right under your policy.
• Coverage vs. value: Appraisal decides the dollar amount, not whether diminished value is covered; policy exclusions can still bar payment.
• Missing steps: Failing to send a proper written demand, missing deadlines, or not naming an appraiser as required can void the appraisal attempt.
• Expectations about “neutral”: Most clauses require each side to choose its own appraiser and then select a neutral umpire; you usually cannot insist on a single joint appraiser.
• If you sue: Courts commonly require mediation; any settlement must be written and signed to be enforceable. Arbitration ordered by the court is typically non‑binding unless the parties agree in writing to make it binding.

Talk to a Personal Injury Attorney

If you're dealing with a diminished value dispute and want to know whether appraisal, mediation, or litigation makes sense, our firm has experienced attorneys who can help you understand your options and timelines. Call us today.

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.