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Learn how to file a diminished value claim in South Carolina after a car accident. Discover what the law allows, typical payout ranges, and practical steps to present a strong claim.
Getting into a car accident is stressful enough without realizing your repaired vehicle may now be worth less than before the collision. Even when body shops restore your car to good working condition, the accident history can still reduce its resale value. This loss, called diminished value, may be recoverable under South Carolina law through a claim against the at-fault driver’s insurance company.
Many drivers don’t realize they can seek compensation for this hidden loss. A vehicle might look like new after repairs, but potential buyers often offer less once they see the accident on its record. Understanding your rights under South Carolina law can help you pursue the financial recovery you’re entitled to seek.
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What Is a Diminished Value Claim?
A diminished value claim seeks reimbursement for the difference between your car’s market value before an accident and its value after repairs.
This applies even when repairs are completed properly. The fact that a vehicle now carries an accident history can reduce its market appeal.
There are three main categories of diminished value:
- Inherent diminished value – automatic loss of market value due to accident history.
- Repair-related diminished value – reduction caused by incomplete or imperfect repairs.
- Immediate diminished value – loss in value between the moment before and after the accident, before repairs occur.
Most South Carolina claims involve inherent diminished value, since nearly every repaired vehicle experiences some loss in perceived worth.
South Carolina Law on Diminished Value
South Carolina follows common-law principles that allow vehicle owners to seek diminished value from the at-fault party. While there is no statute that addresses diminished value exclusively, courts recognize it as a form of recoverable property damage.
The at-fault driver’s insurance company must pay for all property damage resulting from the collision, which may include diminished value. This is typically handled under the at-fault party’s liability coverage. State law provides that you have the right to pursue recovery to restore your financial position to what it was before the crash.
South Carolina is a fault-based insurance state, meaning the person responsible for the collision bears financial responsibility for damages. You can file your diminished value claim with the at-fault driver’s insurer. (You generally cannot claim diminished value from your own insurer unless the vehicle is declared a total loss under a collision policy.)
The statute of limitations for property damage claims in South Carolina is three years from the date of the accident, so timely filing and documentation are important.
What Is the Average Payout?
Diminished value payments vary widely, often ranging from $500 to $5,000 depending on your vehicle’s value, age, mileage, and the extent of damage. Newer, higher-value vehicles typically experience greater loss in resale value.
For example, a two-year-old SUV worth $50,000 might lose several thousand dollars in value even after professional repairs, while an older car might lose only a few hundred dollars. Insurance adjusters sometimes use the 17c formula to calculate diminished value, but this method isn’t required by South Carolina courts; you can present other valuation evidence.
Professional appraisers who specialize in diminished value can prepare detailed reports that strengthen your claim. Their services usually cost between $200 and $400, but they may help you recover substantially more.
How to Support a Diminished Value Claim
A persuasive claim depends on strong documentation.
- Gather your vehicle’s pre-accident value (Kelley Blue Book, NADA Guides, or comparable local listings).
- Keep repair estimates, invoices, and photos of the damage.
- Obtain a vehicle history report from Carfax or AutoCheck.
- Consider hiring a qualified appraiser for an independent valuation.
When you submit your claim, include a formal demand letter that explains your calculation, lists supporting evidence, and specifies the amount requested. Insurance companies often open with low offers, review their math carefully, and respond with factual corrections rather than emotional arguments.
If negotiations stall, you may want to speak with an attorney familiar with diminished value claims in South Carolina. Legal guidance can help you understand your options and may lead to a stronger result.
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Are Diminished Value Settlements Taxable?
Generally, the IRS does not treat diminished value settlements as taxable income. The payment restores property value lost due to an accident rather than providing new income. Still, individual tax circumstances differ, so consulting a tax professional is recommended if you have questions.
When to File Your Claim
File your diminished value claim after repairs are complete but before too much time passes. You’ll need the repair documents to calculate post-repair value, but waiting too long can weaken your evidence.
Begin collecting records immediately after the crash: photos, police reports, and proof of pre-accident condition. Once repairs are finished, have the vehicle inspected for diminished value and submit your documentation promptly.
Working With Insurance Companies
Insurance adjusters represent their employers—not you. Their job is to limit payouts while resolving claims efficiently. Keep communication factual and organized:
- Present your evidence clearly.
- Record all calls, emails, and letters.
- Stay professional and persistent if your claim is denied.
A denial does not mean your claim lacks merit. Respond with additional documentation or request clarification in writing.
How Legal Help Can Support Your Case
You are allowed to pursue a diminished value claim on your own, but legal representation often helps level the playing field. Attorneys can review valuation reports, challenge unfair calculations, and negotiate directly with insurers.
In some cases, South Carolina law allows recovery of attorney’s fees when property damage claims require legal action. Many lawyers handle these matters on a contingency basis, meaning you only pay if compensation is recovered.
Protecting Your Rights After an Accident
Your vehicle is a major investment, and a crash can affect its long-term worth. Understanding diminished value claims empowers you to seek fair compensation for the loss in resale value.
Don’t assume that perfect repairs mean full recovery. The accident record remains on your car’s history permanently. Document everything carefully, stay informed about your rights, and pursue the value your vehicle has lost through the proper legal channels.
*Disclaimer: Past results do not guarantee future outcomes. “Free consultation” or “Free Case Evaluation” refers only to the initial review of your case and does not imply that legal representation is free. Clients may be responsible for costs in addition to the attorney’s fees. Percentage fees are calculated before deducting costs from the gross recovery. No comparison is intended or implied between Maguire Law Firm’s services and those of other lawyers. Testimonials and endorsements do not constitute a guarantee, warranty, or prediction regarding the outcome of your case.
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Last updated Thursday, November 13th, 2025
