North Carolina total-loss rules

Insurance rule makes 75% mandatory for insurers (original plus supplemental claims). Title code parallel: G.S. 20-4.01(33)d defines 'Salvage Motor Vehicle' as one where repair cost 'would exceed seventy-five percent (75%) of its fair retail market value, whether or not the motor vehicle has been declared a total loss by an insurer'. 11 NCAC 04 .0418(j) also bans agreements to keep repair cost below 75%.

'Published Regional Average Values' defined in (b)(3) as industry-recognized guides 'including National Automobile Dealers Association Pricing Guide Book or Kelley Blue Book'. Rule applies to first- and third-party claimants (11 NCAC 04 .0431).

(b)(4): '"Substantially Similar Motor Vehicle" means a motor vehicle of the same make, model, and year of the damaged motor vehicle.' (h): 'Any deductions from the actual cash value ... including deduction for salvage or prior damage, shall be itemized and contain the amount of the deduction.' (g): insurer must consider claimant's receipts/photos showing better condition.

(h): 'The documentation that supports the basis for the settlement shall be shared with the claimant.' Repair-estimate copies also available on request under 11 NCAC 04 .0419(c)(6).

Included up front as part of ACV (not merely upon replacement). Exception: owner-retained salvage. NC's 'sales tax' on vehicles is the Highway Use Tax (3%).

Rule text says 'vehicle registration fees'; it does not separately mention certificate-of-title fees.

IMPORTANT SCOPE: (d1) is written into the LIABILITY policy for 'a claim for property damage to a motor vehicle against an insurer' — it is primarily a THIRD-PARTY claimant remedy (11 NCAC 04 .0421(b)(5) refers to 'third-party claimant ... diminution in fair market value pursuant to G.S. 20-279.21(d1)'). First-party collision/comprehensive appraisal in NC is policy-based (NC Personal Auto Policy Part D appraisal clause), not this statute. Also verbatim: 'If the report is not rejected within 15 days from the filing of the report, the report shall be binding upon both the claimant and the insurer.' and 'Each appraiser shall be paid by the party selecting the appraiser, and the expenses of appraisal and umpire shall be paid by the parties equally.' Appraiser/umpire must be licensed under G.S. 58-33-26/-30. 11 NCAC 04 .0421(d) requires the parties to exchange written appraisal reports. The task brief's characterization of NC as a 'first-party diminished value' state is NOT supported by these sources; NC DV is a third-party (liability) remedy.

G.S. 58-3-100(c): 'The Commissioner may impose a civil penalty under G.S. 58-2-70 if an HMO, service corporation, MEWA, or insurer fails to acknowledge a claim within 30 days after receiving written or electronic notice of the claim'. 11 NCAC 04 .0419(c)(2): 'An insurer shall perform a physical or digital inspection of the damaged vehicle within 10 business days of receipt of the claim.' The 45-day status-report requirement in 58-3-100(c) applies only to accident, health and disability claims. North Carolina has no fixed accept-or-deny day count for auto physical damage; the standard is 'reasonable time' (58-63-15(11)e). Towing and storage: the insurer is liable until 3 days after written notice (.0418(n)).

Also (11)n: 'Failing to promptly provide a reasonable explanation of the basis in the insurance policy in relation to the facts or applicable law for denial of a claim or for the offer of a compromise settlement'. Proviso in (11): 'no violation of this subsection shall of itself create any cause of action in favor of any person other than the Commissioner'. The § 75-1.1 private-remedy pathway (Gray v. NC Ins. Underwriting Ass'n) was not retrieved — treat as background only.

G.S. 1-52(12) applies the 3-year period of G.S. 58-44-16 to insurance policies subject to the standard fire policy (retrieved; not auto). 11 NCAC 04 .0421(b)(4)-(5) tie post-repair PD and DV claims to G.S. 1-52(16). Check the policy for any suit-limitation clause; NC Personal Auto Policy generally follows the statutory period.

An older complaint address no longer resolves and redirects here; the link above is the current one, read on the date shown.

Consumer Services Division handles complaints.