North Carolina
Diminished Value Overview
In North Carolina, a vehicle involved in a not-your-fault accident may lose market value even after repairs are completed. When another driver is responsible, North Carolina law allows you to pursue compensation for that loss in value from the at-fault driver’s insurance company as part of your property damage claim. North Carolina also has specific appraisal and damage disclosure rules that can make diminished value claims more favorable when properly documented.
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01
Statute of Limitations
North Carolina allows three years from the date of the accident to pursue a diminished value claim.
02
Third-Party Claims
Diminished value claims can be pursued against the at fault driver’s liability insurance when another driver caused the accident.
03
First-Party and Uninsured Motorist
Most first party policies in North Carolina exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
04
Small Claims Court Limit
North Carolina small claims court allows diminished value claims up to $10,000.
North Carolina Diminished Value Law
North Carolina recognizes diminished value as a recoverable element of property damage when a vehicle is damaged by another party’s negligence. When repairs do not fully restore a vehicle to its pre loss market value, the owner may recover the remaining loss in value as part of a third party property damage claim.
DeLaney v. Henderson-Gilmer Co., 135 S.E. 791 (N.C. 1926)
The North Carolina Supreme Court held that the proper measure of damages for injury to a vehicle is the difference between its fair market value immediately before and immediately after the injury. The court further recognized that evidence of the reasonable cost of repairs and the reasonable market value of the vehicle after repairs is admissible to establish whether a loss in value remains.