Diminished value claims in South Carolina

Claims against the at-fault driver

In Newman v. Brown (1955), the South Carolina Supreme Court said that the cost of the repairs made, plus the remaining diminution in value of the property, will ordinarily be the proper measure of damages.

The owner has to prove the remaining drop in value after repair.

Claims under your own policy

In Schulmeyer v. State Farm Fire & Casualty Co. (2003), the South Carolina Supreme Court held that a policy expressly limiting coverage to the lesser of actual value or cost of repair does not include an added obligation to pay lost value when repair is chosen.

That holding turned on the "lesser of" wording. Your own policy's wording controls.

Filing deadline

South Carolina gives three years for an action for taking, detaining, or injuring any goods or chattels (S.C. Code 15-3-530(4)).

That is the deadline for filing suit. A South Carolina attorney can confirm how it applies to your dates.

How diminished value claims tend to go in South Carolina

South Carolina's improper claim practices statute expressly covers third-party liability claims. It lists not attempting in good faith to effect prompt, fair, and equitable settlement of claims, including third-party liability claims, in which liability has become reasonably clear (S.C. Code 38-59-20(4)).

Many insurers answer a diminished value request with a formula rather than a market study. The best known is the 17c formula, which came out of the Georgia class actions over first-party claims that followed State Farm v. Mabry; its name comes from paragraph 17(c) of an injunction in one of them. It starts from a capped share of the car's value before the crash, then reduces it with damage and mileage modifiers. A law-firm survey notes it was built for that class action and has not been formally adopted for general use.

Adjusters commonly ask for proof that the repaired car is worth less, not only proof that it was damaged. Records that tend to matter: the final repair invoice and photos, the estimate showing any structural or frame work, the vehicle history report entry, and written market evidence such as dealer quotes or listings for the same car with and without an accident history.

Lost value is easiest to show once repairs are finished, because the value after repair is what gets compared with the value before the crash.

If you have a complaint about claim handling

The South Carolina Department of Insurance's Office of Consumer Services takes complaints about claim disputes, online or on a printed form. File with the South Carolina Department of Insurance.

Next steps

• How Reclaim's diminished-value check works
• Estimate a figure with the diminished value calculator
• How to file a diminished value claim
• Diminished value claims in Mississippi
• Diminished value claims in Florida
• Diminished value rules in every state