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Detailed Answer

Under South Dakota law (SDCL 20-9-1), when an accident damages your vehicle, you may recover both repair costs and any diminished market value after repairs. Diminished market value equals the difference between your car’s pre-accident market value and its post-repair value. To calculate and document diminished value, follow these steps:

1. Determine Pre-Accident Market Value: Research your vehicle’s fair market value just before the crash. Use reputable sources like Kelley Blue Book (KBB), NADA Guides, and local dealership listings. Note model year, mileage, condition, and region. Save dated screenshots or printouts of each valuation.
2. Obtain Repair Estimates and Receipts: Have a licensed collision shop inspect and repair your vehicle. Collect detailed, itemized estimates and final invoices listing parts, labor, and repair procedures. These documents prove the extent and cost of repairs.
3. Assess Post-Repair Market Value: After repairs, re-value the vehicle using the same sources and criteria you used pre-accident. Document any remaining flaws, such as paint mismatch or frame work, that can lower resale value.
4. Calculate Diminished Value: Subtract the post-repair value from the pre-accident value. For instance, if your car was worth $15,500 before the crash and $14,800 after repairs, the diminished value is $700.
5. Consider a Professional Appraisal: A certified appraiser provides an expert diminished value report. Appraisers use standardized methods, market data, and detailed inspections to quantify your loss. Insurers and courts often accept these reports.
6. Compile Your Claim Package: Assemble all documentation: pre- and post-repair valuations, repair invoices, appraisal report (if any), photographs of damage and repairs, and a demand letter detailing your diminished value calculation. Send this packet via certified mail to the at-fault driver’s insurer or include it in your collision claim.

Following these steps creates a clear, evidence-based record for your diminished market value claim under South Dakota law.

Relevant South Dakota Statute

• SDCL 20-9-1: Measure of damages for injury to personal property

Disclaimer

This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney in South Dakota for guidance on your specific situation.

Helpful Hints

• Obtain multiple pre- and post-repair valuations to show consistent market data.
• Take clear, timestamped photos of all damage and repairs.
• Keep all correspondence with insurers in writing and organized.
• Retain copies of your appraisal report, repair invoices, and vehicle history report.
• Consider small claims court if the insurer denies your diminished value claim.