Detailed Answer
Diminished value occurs when your vehicle loses market value after repairs. To recover this loss in South Dakota, follow these steps:
- Review Your Policy and Liability
Check if you claim against your own collision coverage or against the at-fault driver’s liability policy. South Dakota law treats diminished value as part of your property damage loss. - Document Pre-Accident Value
Gather evidence of your vehicle’s market value before the crash. Use Kelley Blue Book, NADA Guides or comparable listings. Save printouts or screenshots. - Obtain a Repair Estimate
Get a detailed repair estimate from a licensed body shop. Make sure it lists parts, labor and paint. This establishes that your vehicle was fully repaired to pre-loss condition. - Hire an Independent Appraiser
An appraiser can calculate diminished value by comparing pre- and post-repair valuations. Their written report strengthens your demand. - Prepare a Demand Letter
Draft a clear letter to the insurer. Include:- Claim number and date of loss
- Estimate of repair costs
- Independent appraisal report
- Market data for pre-loss value
- Submit to the Insurance Company
Send your demand by certified mail or through the insurer’s online claims portal. Keep proof of delivery. - Follow Up Under South Dakota Timelines
Under SDCL 58-12-17, the insurer must acknowledge your claim within 10 business days and accept or deny it within 30 days. If the insurer delays unreasonably or denies without justification, you may have grounds for an unlawful claim settlement practice under SDCL 58-12-1. - Consider the Appraisal Clause
If your policy includes an appraisal clause, you can invoke a neutral appraisal process when you dispute the insurer’s valuation. Each party selects an appraiser, and the two appraisers pick an umpire.
Helpful Hints
- Keep all correspondence in writing for proof.
- Take before-and-after photos of your vehicle.
- Obtain multiple market value sources for stronger evidence.
- Review your policy’s time limits and filing deadlines.
- Consult a licensed attorney if the insurer denies or undervalues your claim.
Disclaimer: This article provides general information on South Dakota law and is not legal advice. Consult a qualified attorney for advice on your specific situation.