Diminished Value Insurance Claims: What You Need to Know in GA and SC
When your vehicle is damaged in an accident, it loses value — even after repairs. This decrease in market value is known as “diminished value,” and it can represent thousands of dollars in lost vehicle worth. Did you know that you may be able to receive compensation for this difference in value?
Both Georgia and South Carolina recognize diminished value claims. At M. Austin Jackson Injury Lawyers, we help clients in the Augusta area and beyond recover fair compensation for their vehicles’ diminished value.
Our team is here to explain the different types of diminished value, break down the differences in how GA and SC handles these claims, and explain how you can maximize your financial recovery after your vehicle is damaged. Let’s get started.
Understanding Types of Diminished Value
There are three main types of diminished value recognized in both Georgia and South Carolina, though each state’s courts may weigh them differently.
Inherent Diminished Value
This is the most commonly claimed type of diminished value. It refers to the loss in value that occurs simply because a vehicle has an accident history. Even with perfect repairs, a vehicle with an accident history is worth less than an identical vehicle without damage history.
Georgia has established a specific formula for calculating inherent diminished value (the 17c formula, more on this below!), giving Georgia residents a more standardized approach. South Carolina doesn’t use this formula but still recognizes inherent diminished value, relying more on market-based evidence of the loss.
Immediate Diminished Value
This refers to the difference in your vehicle’s resale value immediately after an accident but before repairs. While rarely claimed since most vehicles are repaired, Georgia courts do recognize this type when applicable. South Carolina courts may consider immediate diminished value but typically focus on the vehicle’s post-repair condition.
Repair-Related Diminished Value
This type of diminished value addresses the depreciation due to repairs that didn’t return the vehicle to its pre-accident condition (for example, if repairs are made with lower quality parts or if the paint used by the repair shop doesn’t quite match the rest of the car). Both Georgia and South Carolina recognize repair-related diminished value and require documentation of repair quality issues or remaining defects.
How Diminished Value Is Calculated
The calculation methods used in Georgia and South Carolina differ significantly, which directly affects how much you may recover.
Georgia’s 17c Formula
Georgia’s 17c Formula
Georgia uses what’s known as the “17c formula” for most diminished value insurance claims. The “17c” formula is named after a famous car insurance lawsuit in Georgia, Mabry V. State Farm, where the court used this formula in paragraph 17, section c (hence, the name “17c”!).
Here are the formula’s steps:
- Determine your vehicle’s pre-accident market value using resources like Kelley Blue Book or NADA guides
- Apply a 10% cap to the value (this is the maximum possible diminished value)
- Apply a damage modifier based on the severity of damage (from 0% for no structural damage to 100% for severe structural damage)
- Apply a mileage modifier that reduces the value based on your vehicle’s mileage
For example, a vehicle worth $20,000 with moderate damage might have a diminished value calculation like this:
- Base value: $20,000
- Cap value (10%): $2,000
- Damage modifier (50% for moderate damage): $1,000
- Mileage modifier (25% reduction for 60,000 miles): $750 final diminished value
If you’d like help understanding what your case might be worth, our experienced personal injury attorneys can help. Reach out today for a free consultation.
South Carolina’s Approach
South Carolina doesn’t use the 17c formula. Instead, courts typically rely on:
- Market comparisons of similar vehicles with and without an accident history
- Professional appraisals from qualified experts
- Documentation of decreased trade-in or sale offers
- Evidence of repair quality and remaining issues
For a similar $20,000 vehicle with moderate damage in South Carolina, the diminished value might be determined through an independent appraisal that compares market prices for similar vehicles with and without an accident history.
Cross-Border Considerations
For accidents that occur across state lines, the state where the accident happened typically determines which approach applies. This means if you’re a South Carolina resident but your accident occurred in Georgia, you’ll likely need to use Georgia’s calculation methods when filing your claim.
Proving Your Vehicle’s Diminished Value
Proper documentation is essential for a successful diminished value claim in either state.
Documentation Requirements in Georgia
In Georgia, successful claims typically include:
- Detailed repair estimates and invoices
- Pre-accident value documentation from recognized sources
- Post-repair appraisals from qualified experts
- Accident reports
- Photographs of vehicle damage
- Documentation of any unsuccessful repair attempts
- Evidence of decreased trade-in value from dealerships
Documentation Requirements in South Carolina
South Carolina requires similar documentation but places greater emphasis on:
- Professional third-party appraisals
- Market-based evidence of value loss
- Statements from dealerships confirming lower resale value
- Detailed comparison of similar vehicles with and without an accident history
For Residents Who Travel Between States
If you frequently travel between Georgia and South Carolina, maintain comprehensive documentation regardless of where an accident might occur. This includes:
- Regular vehicle condition documentation
- Service records showing proper maintenance
- Pre-accident photos if possible
- Multiple value assessments after an accident and repairs
Insurance Company Responses in Both States
Insurance companies in both Georgia and South Carolina often resist diminished value claims. Though their tactics may differ slightly by state, we frequently see insurers using the same basic tactics to minimize your payout.
Common Tactics in Georgia
Insurance companies in Georgia often strictly apply the 17c formula, which typically results in lower payouts than what your vehicle’s diminished value might actually be.
They frequently dispute the pre-accident value of your vehicle or minimize the damage modifier percentage to reduce their liability. Many insurers claim that successful repairs eliminated any diminished value, despite market evidence to the contrary. Some may even delay responses, hoping claimants will become frustrated and give up on pursuing their claim. If this happens, don’t lose hope — a compassionate car accident lawyer like ours at M. Austin Jackson can help!
Common Tactics in South Carolina
In South Carolina, insurers typically require extensive proof of diminished value beyond what might seem reasonable.
They might dispute the qualifications of your appraiser or question the methodology used to determine value loss. Many companies offer minimal settlements, with the expectation that you’ll accept the first offer rather than fight for fair compensation. Some insurers claim your vehicle’s age or condition has already diminished its value, regardless of the accident. To extend the process, they might request multiple appraisals or additional documentation, hoping you’ll settle for less out of frustration.
Multi-State Claims
When accidents involve insurance companies from different states or occur across state lines, the situation becomes more complex.
Insurers may attempt to apply the regulations most favorable to them, whether from Georgia or South Carolina. Some claim lack of jurisdiction or confusion about which state’s laws apply. Others require additional documentation specific to both states, creating extra hurdles. Many extend review periods, citing the complexity of multi-state claims as justification for delays in processing your diminished value claim.
Filing Your Diminished Value Claim
The process for filing a diminished value claim is similar in Georgia and South Carolina, but not identical. Here’s what you can expect.
Georgia Process
- Notify the at-fault driver’s insurance company of your intent to file a diminished value claim
- Gather documentation of your vehicle’s pre-accident value
- Complete necessary repairs through approved facilities
- Obtain a post-repair diminished value appraisal
- Submit your formal claim with all supporting documentation
- Negotiate with the insurance adjuster
- Accept a fair settlement or pursue litigation if necessary
Most Georgia diminished value claims must be filed within four years of the accident date.
South Carolina Process
- Notify the at-fault driver’s insurance company about your diminished value claim
- Document your vehicle’s pre-accident condition and value
- Complete all necessary repairs
- Obtain multiple post-repair valuations and appraisals
- Gather evidence of comparable vehicles’ values
- Submit your claim with comprehensive documentation
- Negotiate with the insurance company
- Pursue legal action if a fair settlement cannot be reached
South Carolina diminished value claims are typically subject to a three-year statute of limitations.
Important Timing Considerations
To make the process of filing a diminished value claim a little smoother, keep these tips in mind.
- In both states, notify the insurance company of your intent to file a diminished value claim as soon as possible
- Wait until repairs are complete before finalizing your claim
- Allow time for professional appraisals
- Be aware of statute of limitations deadlines
- Document all communications with insurance companies
How Our Attorneys Help With Diminished Value Claims
At M. Austin Jackson, we’ve helped countless clients throughout the Augusta area recover fair compensation for diminished value. Whether you’ve been in a car accident, truck accident, motorcycle crash, or sustained damage to your vehicle in another way, we’re here to advocate for you.
Our experienced team understands the nuances of both Georgia and South Carolina laws, and we’ll help you create the strongest possible case given your unique circumstances. We’ll connect you with qualified appraisers, gather the right documentation on your behalf, and negotiate aggressively with insurance companies — while keeping you informed at every step.
We have deep expertise in the Augusta area and beyond, and we’re ready to build an ironclad case for you. When you’re ready, reach out to us and share your story.
Frequently Asked Questions
What are the statutes of limitations in Georgia and South Carolina?
In Georgia, you generally have four years from the date of the accident to file a diminished value claim. South Carolina typically allows three years. However, other factors can affect these deadlines, so it’s best to consult with an attorney promptly after an accident.
How do calculation methods differ between states?
Georgia uses the 17c formula, which applies standardized percentages based on value, damage severity, and mileage. South Carolina relies more on market-based evidence and professional appraisals to determine diminished value.
What if my accident happened in one state but I live in the other?
Generally, the laws of the state where the accident occurred will apply to your diminished value claim. If you’re an Augusta resident who had an accident in South Carolina, South Carolina’s approach would typically apply, and vice versa.
Can I file a claim if I was partially at fault in either state?
Yes, but your diminished value recovery may be reduced. Georgia follows a modified comparative negligence rule where you can recover damages if you’re less than 50% at fault. South Carolina allows recovery if you’re 50% or less at fault. Your compensation in both states will be reduced by your percentage of fault.
What documentation requirements differ between states?
While both states require similar basic documentation, Georgia places more emphasis on calculations using the 17c formula, while South Carolina puts greater weight on market comparisons and professional appraisals demonstrating actual value loss.
M. Austin Jackson has more than a decade of experience helping his neighbors in Georgia and South Carolina receive justice and fair compensation after an injury. An Augusta native, Austin is honored to serve this wonderful community, and he prides himself on providing friendly, personal legal guidance for folks in the middle of a hard time.
