Detailed Answer

In South Dakota, a diminished value claim asks your insurer to pay the difference between your vehicle’s fair market value before an accident and its value after repairs. Although no specific diminished value statute exists, insurers must follow general unfair claim practices under SDCL 58-11-18 and settlement rules under ARSD 20:06:04. Strong evidence will make your claim harder to dispute.

Key evidence types include:

• Pre-Accident Appraisal: A professional appraisal dated before your accident that documents your vehicle’s condition, mileage and equipment.
• Diminished Value Report: An independent appraiser’s calculation showing the market value loss post‐repair. Use a recognized methodology such as the “17c” formula or equivalent.
• Repair Invoices and Estimates: Detailed shop invoices listing parts replaced, labor hours and OEM vs. aftermarket components.
• Before & After Photos: High-resolution images of any damage prior to repair and the completed work, highlighting structural or frame repairs.
• Vehicle History Report: A Carfax or AutoCheck report showing the accident record and repair history.
• Comparable Sales Data: Listings for similar vehicles (year, make, model, mileage, condition) in your region, pulled from online marketplaces or auction results.
• Maintenance Records: Receipts and service logs that show your vehicle was well-maintained, supporting a higher pre-accident value.
• Expert Witness Statement: A statement from a collision repair specialist or certified appraiser explaining residual stigma and resale impact.

Gathering these documents and reports builds a complete picture of value loss. Provide organized copies to your insurer and demand a written response. If the insurer denies or undervalues your claim, you may consider mediation, appraisal clauses in your policy or legal counsel.

Disclaimer: This information is for educational purposes only and not legal advice. Consult a qualified attorney for advice specific to your situation.

Helpful Hints

• Request a free copy of your insurance policy’s appraisal clause.
• Get multiple independent appraisals to compare results.
• Keep digital and printed records organized by date.
• Send all evidence via certified mail or tracked email.
• Use public auction sites (e.g., Copart, IAAI) for real-time comparable sales.
• Check for frame damage – it often causes the greatest stigma.
• Ask your repair shop for before-repair estimates with line-item detail.
• Consider an affidavit from a used-car dealer on resale impact.