Detailed Answer
What Is Diminished Value?
Diminished value represents the gap between your vehicle’s pre-accident market value and its value after professional repairs. Even when repairs restore structural integrity and appearance, most buyers will pay less for a vehicle with a collision history.
Relevant South Carolina Law
South Carolina does not have a statute specific to diminished value claims. However, insurers must handle all first- and third-party claims in good faith. Unfair claim settlement practices are prohibited under S.C. Code Ann. §38-77-140. If a claim involves a contract dispute, you generally have three years from the accident date to file suit under S.C. Code Ann. §15-3-530.
Step-by-Step Claim Submission
- Review Your Policy or Third-Party Liability: Determine if your policy covers diminished value or if you must pursue the at-fault driver’s insurer.
- Document Pre-Accident Value: Compile vehicle records, recent sold listings for similar makes/models, appraisal reports, and valuation guides (e.g., Kelley Blue Book).
- Obtain a Professional Appraisal: Hire a certified diminished value specialist. The report should include before- and after-repair valuations, repair estimates, and photographs.
- Assemble Your Claim Package: Include the appraisal, repair invoice, photos of damage, pre-accident valuation evidence, and a detailed demand letter outlining the diminished value amount claimed.
- Submit Your Written Demand: Send your package via certified mail, return receipt requested, to the insurer’s claims department. Retain copies of all documents and mailing receipts.
- Follow Up Promptly: Under §38-77-140, an insurer must acknowledge or deny your claim within 15 business days of receiving your written demand. If you don’t hear back, send a written reminder.
- Negotiate or Escalate: If the insurer offers less than your appraisal or denies the claim, request a written explanation. You can submit additional evidence or ask for a re-evaluation by a senior adjuster.
- Consider Formal Dispute Resolution: If negotiations fail, you may file a complaint with the South Carolina Department of Insurance or pursue small claims court (up to $7,500). For larger claims, consult an attorney for possible breach of contract or bad faith litigation.
Helpful Hints
- Keep a detailed accident diary: note dates, times, names of adjusters, and conversation details.
- Obtain multiple diminished value appraisals if possible to strengthen your position.
- Maintain all original repair invoices and warranties; they help prove quality repairs.
- Send all correspondence via traceable methods (certified mail or email with read receipt).
- Stay within the three-year statute of limitations (§15-3-530).
- Consult the South Carolina Department of Insurance website for complaint procedures: doi.sc.gov/Consumers/Consumer-Complaint.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a licensed attorney to discuss your specific circumstances.