Short Answer

In North Carolina, a diminished value representation letter should clearly identify the claim, state that you represent the vehicle owner for the diminished value portion only, and ask the insurer to route all communications through you. Include the claim number, loss date, vehicle details (VIN, year/make/model), repair documentation, your client’s authorization to share claim information, any valuation approach you plan to use, a request for inspection if needed, and a reasonable response deadline. Submit it through the insurer’s designated claims email or portal and request written acknowledgment.

Understanding the Problem

You want to know exactly what to put in a North Carolina representation letter so an auto insurer will process a diminished value claim efficiently. The attorney is the sender; the action is submitting a letter of representation limited to diminished value; the goal is to trigger insurer handling by the correct unit and get a clear process and email address for submission. One key fact: your client already has a claim open and a claim number.

Apply the Law

Under North Carolina law, an auto insurer’s claims department is the primary forum for presenting a diminished value claim before any lawsuit. The core legal guardrails are insurance claims-handling standards and the general statute of limitations for property damage. Your letter should (1) identify the claim and your authority to communicate, (2) define the scope as diminished value only, (3) provide the factual basis and documentation for the valuation, and (4) request timely action and written acknowledgment. If it is a first-party claim under your client’s own policy, you can also request a copy of the policy and ask whether an appraisal clause applies; for third-party claims, appraisal is usually inapplicable, so focus on documentation and inspection access.

Key Requirements

• Clear claim identification: Claim number, loss date, insured/claimant names, vehicle VIN and year/make/model to ensure correct file routing.
• Scope of representation: State you represent the owner for diminished value only and request all communications and offers go through counsel.
• Authority to receive information: Include a signed client authorization so the insurer can discuss the claim and share documents with you.
• Factual basis and attachments: Attach repair estimates/invoices and photos; state whether repairs are complete and outline your valuation method (e.g., independent report) and willingness to coordinate an inspection.
• Requested insurer actions and timing: Ask for written acknowledgment, the correct email/portal for the diminished value unit, and a coverage/valuation response within a reasonable window (for example, 15–30 days).
• Policy and appraisal clause (if first-party): Request the declarations page and any appraisal clause steps; if third-party, ask for the adjuster’s evaluation process.
• Delivery details and confirmation: Provide your contact information, preferred delivery method, and request written confirmation of receipt and file update to counsel-of-record.

What the Statutes Say

• North Carolina Gen. Stat. § 58-63-15 (Unfair claim settlement practices) – sets standards for fair investigation and prompt handling of claims.
• North Carolina Gen. Stat. § 20-279.21 (Motor vehicle liability coverage) – addresses minimum liability coverage for property damage claims.
• North Carolina Gen. Stat. § 1-52 (Three-year limitations for certain actions) – most property damage claims must be brought within three years; confirm which subdivision applies.

Analysis

Apply the Rule to the Facts: Because your client already has an open claim and claim number, your letter should immediately identify that file and limit representation to diminished value only. Include repair documentation and say you will supply or obtain a valuation report; request an inspection if the insurer wants to see the vehicle. Ask for the correct diminished value email/portal, written acknowledgment, and a response timeline; include a signed client authorization so the insurer can communicate with you directly.

Process & Timing

1. Who files: The attorney for the vehicle owner. Where: The insurer’s property damage/diminished value unit via the adjuster’s email, the company’s claims email/portal, or certified mail to the claims address in North Carolina. What: A tailored representation letter (no official form) with claim identifiers, authorization, repair docs, and requested actions. When: Send promptly after repairs are complete or once liability is accepted; request acknowledgment within 7–10 business days and a valuation response within 15–30 days.
2. After submission, the insurer should confirm receipt, note counsel-of-record, and advise the correct email/portal and any additional documents needed; inspections are often scheduled within 1–3 weeks, depending on workload.
3. Negotiation follows the insurer’s evaluation; if first-party, ask whether an appraisal clause applies. Final outcome is a written diminished value offer and (if accepted) a release limited to diminished value only with payment issued to the client and firm as designated.

Exceptions & Pitfalls

• Do not combine releases: Keep any diminished value release separate from bodily injury or other property damage releases, or expressly reserve those rights.
• First- vs. third-party: Appraisal clauses usually apply only to first-party claims under your client’s policy; third-party claims typically rely on documentation and negotiation.
• Proof gaps: Missing repair invoices, photos, or valuation support slows review; include them up front and offer inspection access.
• Wrong inbox = delay: Always ask for the insurer’s specific diminished value unit email or portal and request written acknowledgment of receipt and file update.
• Deadlines don’t toll: Communicating with an adjuster rarely pauses the statute of limitations; track the three-year window and plan accordingly.

Talk to a Other Legal Matters Attorney

If you’re dealing with a diminished value claim and need a clear, effective representation letter and process, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

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.