Drivers and insurance companies have a long history of disagreeing over what a car is really worth. It’s a quiet tug-of-war that usually plays out behind paperwork and phone calls, but one North Carolina case has dragged that dispute into federal court. Now State Farm wants the lawsuit shut down or paused, arguing the driver behind it skipped a crucial step laid out in his own policy.

The case centers on policyholder Craig Brewer.

State Farm declared the customer’s vehicle a total loss

According to Repairer Driven News, a collision industry publisher, Brewer claims State Farm trimmed the values of comparable cars by about several percentage points. He says the move cut his payout by roughly 5.5%.

Brewer argues those reductions violate North Carolina’s Unfair and Deceptive Trade Practices Act and the Unfair Claims Settlement Practices Act. He also alleges breach of contract.

State Farm answered with a detailed memorandum on November 25th

The company argued Brewer does not have standing because he refused to take part in the appraisal process the policy requires when there is a disagreement over actual cash value.

State Farm explained that an appraisal could show it paid Brewer correctly…or even too much. So, then, the court should dismiss the case or put everything on hold until that appraisal.

The insurer pushed back on the contract argument as well

The company said the policy does not require any specific valuation method. It only requires State Farm to pay actual cash value or the amount needed to repair or replace the car with similar property.

State Farm also emphasized that the policy explicitly allows adjustments for depreciation and physical condition.

On the statutory claims, State Farm said Brewer simply dressed up a contract dispute as something more serious. The company pointed to similar federal cases, including one involving a driver named Bryant, where courts dismissed lawsuits because the policyholders had not gone through the required appraisal first.

State Farm also challenged the class action part of the complaint. It said total loss valuations are too individualized for a class to work, since every vehicle’s value depends on its own condition and history.

The dispute now sits with the court

Now, the question isn’t just whether Brewer was paid enough by State Farm. It’s whether a driver can sue at all before completing the process spelled out in the policy he signed.