If you have ever been unfortunate enough to be involved in an automobile accident, one of the first questions you probably had was this – what can I ask the other driver to reimburse me for? There are several categories of damages that the victim of a car accident is entitled to medical expenses, pain and suffering, lost income, and property damage to the vehicle. One often-overlooked category of damages is the diminished value of a vehicle. Anyone who has owned a vehicle is aware of the fact that the market value of your vehicle often decreases when it is involved in an accident and there was damage to your vehicle. When you are hit by another driver, you are entitled to recover for the decrease in value.
What happens if you and the insurance company for the other driver cannot agree to a value for the diminished value of your vehicle? The North Carolina legislature established a procedure for resolving these disputes when it passed NCGS 20-279.21(d1), a portion of the statutes often referred to as the “appraisal clause.” This clause is available, when either: a) the difference between your estimate of the decrease in value and the other driver’s estimate is more than $2,000; or b) the difference between your estimate of the decrease in value and the other driver’s estimate is 25% of the fair market retail value of the vehicle prior to the accident, whichever is less.
The process for invoking the clause is laid out in the same statute. When either the difference is more than $2,000 or 25% of the fair market retail value of the car before the accident, either side may invoke the appraisal clause by sending a written demand to the other party. Within 20 days after the written demand has been sent, both sides must select an independent appraiser and send notification of the appraiser to the other side. Both appraisers then appraise the vehicle and report their number for the decrease in value. If the appraisers cannot arrive to an agreed, the appraisers will select a third neutral appraiser to serve as an umpire. The umpire will then review the reports of both sides and issue his own report determining the amount in decrease in value. If the report is not rejected by either of the two original appraisers within 15 days, the report will be binding.
Filing a claim with the insurance company of another driver can be tricky and a good, experienced motor vehicle accident attorney can help you ensure that you do not miss out on any damages to which you are entitled. If get in a car accident, feel free to contact the attorneys at the Tran Law Firm today to schedule your free consultation and make sure your legal and financial rights are protected.
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