Diminished Value in North Carolina
What is Diminished Value?
After an accident, your car’s market value will decrease even if it goes through all of the necessary procedures to restore it back to its prior condition. Diminished value is the difference in your car’s market value before and after an accident. Even if you try to resell your vehicle, Carfax and similar reports will show that it has been involved in an accident, which will reduce its market value. A diminished value claim can help recover the costs to bring your vehicle back to its pre-accident market price.
North Carolina Diminished Value Law GS 20-279.21(d1)
Under GS 20-279.21(d1) a quote or letter of diminished value from a new/used car dealer IS NOT ACCEPTABLE. The ONLY person who can appraise your vehicle for diminished value is an appraiser who is licensed by the North Carolina Department of Insurance as a "motor vehicle damage appraiser."
Your CSI-NC Diminished Value Desk Appraisal includes CARFAX report, Monroney Window Sticker, NADA Value at time of loss, appraiser's consultation via phone or email throughout claim process and negotiating with the auto insurer's dis-interested appraiser to reach an agreement of amount of loss.
Items needed: The complete Supplemental / Summary of Repairs or the Final Bill in PDF format, your photos of the damage and the body shop photos. Fee $300
When Should I File a Diminished Value Claim?
Once the repairs are complete you can pursue a diminished value claim. Just make sure that the body shop’s final bill is actual having no additional supplements billing to the auto insurer. Under GS 20-279.21(d1) a quote or letter of diminished value from a new/used car dealer IS NOT ACCEPTABLE. The ONLY person who can appraise your vehicle for diminished value is an appraiser who is licensed by the North Carolina Department of Insurance as a "motor vehicle damage appraiser."
How Long Does The Process of Recovering My Settlement Actually Take?
Regardless of what you may read from the on-line out-of-state appraisers websites, the actual time frame can be 45 days and more. There are several reasons why claims take this long:
The covid-19 virus has slowed things down.
The longer the at-fault auto insurer can drag matters out, the more interest on the money the at-fault auto insurer makes before the claim is settled.
Auto insurers know many claimants have other things going in their life and it is up to you the claimant to make things happen. The at-fault insurer is not going reminding you about your diminished value claim. Remember these words: “it’s the squeaky wheel that gets the grease."
One thing for certain, Danny Wyatt owner of CSI-NC is still by your side from start to finish whenever you are in need of advice.
What's the Cost and What is Included In My Appraisal?
The appraisal fee is $300.00. Without foreseen obstacles you will receive your appraisal within 2-3 business days if not sooner. You also receive a type of demand letter to at-fault auto insurer, appraiser's consultation via phone or email throughout the entire claim process and negotiating with the auto insurer's dis-interested appraiser to reach an agreement of amount of loss.
What is in the appraisal itself ?
First is the Appraiser’s Disclosure followed by the Vehicle Owner’s Name, Vehicle Description, the VIN Number, Date of Loss, Mileage Time of Loss, the Purpose of Appraisal, Description of the Damages, the NADA Pre-Accident Fair Market Value / Damage Disclosure in order for you to know if cost of repairs does or does not exceed 25% of the NADA value, the Factors Contributing to Diminution in Fair Market Value, followed up with the stated Diminution in Fair Market Value. Attachments are the NADA value, CARFAX and the body shops Final Repair Bill or Final Supplemental Summary. Total amount of pages varies.
Does the appraisal need be USPAP Compliant?
The answer is NO! North Carolina’s diminished value law G.S. 20-279.21(d1) does not state the appraisal is to be USPAP compliant. G.S. 20-279.21(d1) states: “then on the written demand of either the claimant or the insurer, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within 20 days after the demand. The appraisers shall then appraise the loss."
Many internet appraisers like stating their desk appraisal is "USPAP Compliant,"" which makes a person think they something special. It's all sale hype! Most USPAP appraisals are focused on real-estate appraisals that can be seen and actually touched by the appraiser and no one else. USPAP / Uniform Standards of Professional Appraisal Practice.
Something to Consider
If you were buying or selling a house in North Carolina would you hire an out-of-state appraiser? Of course not, so why hire an out-of-state appraiser to appraise your loss to your car, truck or SUV? As much as they like to make you to believe they are, the majority of the on-line appraisers are not located in North Carolina. If you speak to the appraiser asked them for a complete copy of their North Carolina Motor Vehicle Damage Appraiser license; the license will shown the state they are actually in. Collision Service Investigators - NC is located in Salisbury NC.
If you have question regarding your diminished value claim, contact Danny by phone or email, or used the fill out form below.