Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.
Detailed Answer
Understanding Diminished Market Value in South Carolina
Diminished market value (DMV) is the difference between a vehicle’s fair market value immediately before an accident and its value immediately after repairs. South Carolina does not have a specific statute that defines DMV claims, but insurers must comply with the Unfair Claim Settlement Practices Act (S.C. Code Ann. § 38-77-140). This statute requires insurers to conduct prompt, fair, and equitable investigations and settlements.
Step 1: Establish Pre-Accident Fair Market Value
Use reputable pricing guides (Kelly Blue Book, NADA) and local sales data to determine the vehicle’s value just before the crash. Document:
- Make, model, year, mileage, and condition.
- Printed or screenshot copies of guide values and comparable sales listings.
Step 2: Document Post-Repair Value
After repairs, obtain an independent appraisal from a licensed auto appraiser or collision professional. Record:
- Repair invoices describing work performed.
- Photos of damage before and after repair.
- Written appraisal showing post-repair market value.
Step 3: Calculate Diminished Market Value
Subtract the post-repair value from the pre-accident value. Example:
- Pre-accident value: $15,000
- Post-repair value: $13,500
- DMV = $15,000 – $13,500 = $1,500
Step 4: Submit Your Diminished Value Claim
Prepare a claim package including:
- Written demand letter stating your DMV calculation.
- Copies of appraisals, repair invoices, photos, and market guide printouts.
- Reference to S.C. Code Ann. § 38-77-140 to emphasize the insurer’s duty to handle your claim fairly.
Step 5: Negotiation and, If Necessary, Litigation
Most insurers will negotiate once presented with solid documentation. If they deny or undervalue your claim, you may:
- File a complaint with the South Carolina Department of Insurance.
- Pursue a civil action in Small Claims Court (claims up to $7,500) or General Sessions (over $7,500).
Helpful Hints
- Retain all original documents—missing paperwork weakens your claim.
- Use multiple independent appraisals to support a higher fair market value.
- Photograph all damage angles before and after repair for clear evidence.
- Keep a detailed repair timeline with invoices and correspondence.
- Consult an attorney early if the insurer refuses to negotiate in good faith.