Short Answer

Under most North Carolina auto policies, if the two appraisers cannot agree on the amount of diminished value, they select a neutral umpire. Any two of the three (either both appraisers or one appraiser plus the umpire) sign a written award that sets the amount. If the appraisers cannot agree on an umpire, a court can be asked to appoint one. Each side pays its own appraiser and typically splits the umpire’s fee.

Understanding the Problem

You want to know what happens in North Carolina if your appraiser and the insurer’s appraiser cannot agree on the diminished value of your repaired vehicle. This comes up in a property damage claim tied to a personal injury crash when you and the insurer disagree on the “amount of loss.” Here, you already obtained a paid appraisal and your attorney plans to invoke the policy’s appraisal clause after the insurer’s first offer came in far too low.

Apply the Law

In North Carolina, the appraisal process is a contractual method in many auto policies to resolve disputes over the amount of loss, including diminished value when the policy allows it. After a written demand for appraisal, each side picks a competent, independent appraiser. If those two cannot agree on the amount, they select a neutral umpire. A decision agreed to by any two of the three sets the amount of loss. Coverage questions and liability are not decided in appraisal. The process happens privately; if the appraisers cannot agree on an umpire, a party can ask a North Carolina court to appoint one. Policy language controls timelines and cost-sharing.

Key Requirements

• Disagreement on amount of loss: There must be a genuine dispute about value after repair (the diminished value).
• Written demand under the policy: One party sends a timely written appraisal demand as the policy requires.
• Independent appraisers: Each side selects a qualified, unbiased appraiser to assess value.
• Umpire if no agreement: If the two appraisers can’t agree, they pick a neutral umpire to resolve the gap.
• Two-out-of-three award: Any two (both appraisers, or one appraiser and the umpire) sign a written award that fixes the amount.
• Costs: Each party pays its own appraiser and usually splits the umpire’s fee per the policy.

What the Statutes Say

• North Carolina generally treats appraisal as a contractual process governed by your policy. There is no single statewide statute that sets appraisal steps for auto diminished value; courts can assist with appointments or enforcement when needed, and procedures can vary.

Analysis

Apply the Rule to the Facts: You and the insurer disagree on diminished value, so the appraisal clause is the correct tool. Your attorney’s written demand will trigger each side’s selection of an independent appraiser. If those appraisers can’t reach a number, they must choose a neutral umpire; if they can’t agree on who that should be, your attorney can ask a North Carolina court to appoint one. The final amount will be whatever two of the three sign in a written award; you’ve already covered your appraiser’s fee, and the policy typically splits any umpire fee.

Process & Timing

1. Who files: The insured (through counsel). Where: Send a written appraisal demand to the insurer per the notice address in your policy; later court involvement, if needed, is in North Carolina Superior Court in your county. What: Written appraisal demand referencing the policy’s appraisal clause; if court help is required, a petition/motion to appoint an umpire or to compel appraisal (no statewide form). When: Make the demand promptly after the insurer states its position and a dispute exists; policies often require timely written notice.
2. Appraisers exchange data (market comps, repair records) and try to agree; if not, they jointly select a neutral umpire. If they can’t agree on an umpire, counsel petitions Superior Court for appointment. Timeframes vary by county and docket.
3. The appraisers and, if necessary, the umpire set the value. Any two sign a written award. The insurer then adjusts the claim based on that amount per the policy.

Exceptions & Pitfalls

• Policy scope: Some policies limit or exclude first-party diminished value; appraisal cannot create coverage that the policy does not provide.
• Wrong forum: Appraisal decides only the amount of loss, not fault or coverage. Disputes over liability or coverage may require negotiation or litigation.
• Umpire impasse: If appraisers can’t agree on an umpire, promptly seek court appointment to keep the process moving.
• Notice defects: Missing policy steps (late or informal demand, not naming an appraiser) can delay or derail appraisal.
• Deadlines elsewhere: Appraisal usually does not pause lawsuit or contract limitation periods; track any limitation deadlines separately.
• Independence: Pick a truly independent appraiser; perceived bias can undermine the award or invite challenge.

Talk to a Personal Injury Attorney

If you’re facing a low offer and a stalled valuation, our firm can guide you through North Carolina’s appraisal process, from the written demand to umpire selection and court appointment if needed. If you’re dealing with this issue, we can help you understand your options and timelines. Reach out 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.