The state insurance regulator has put its view in writing, which makes a diminished value claim in South Dakota easier to start. The other driver's insurer owes proven lost value. Your own insurer usually does not.
Bulletin 03-02 from the Division of Insurance
In Bulletin 03-02, the South Dakota Division of Insurance spoke to both kinds of claims. It said nothing in its guidance changes the duty to pay a third party claimant for a demonstrated loss of market value. Demonstrated is the key word. You have to show the loss, not just claim it.
Good proof is a written appraisal that sets the value of your car before the crash next to its value after repairs. Send it with a short demand letter to the adjuster for the at-fault driver.
Your Own Policy Pays Only for a Poor Repair
For first party claims the bulletin draws a line. An insurer is not obligated to pay lost value when the car is completely repaired to its condition before the loss. The duty comes back if the repairs do not truly restore the car. Poor paint, bent parts or a frame left out of spec are the kinds of defects to document.
The state Supreme Court took a similar line in Culhane v. Western National, from 2005. The insurer's duty to repair did not include diminished market value.
Slight Fault Only
South Dakota uses an unusual fault rule. Under S.D. Codified Laws ยง 20-9-2, slight negligence on your part, compared with the other driver's, does not block recovery. More than slight fault can end the claim. If you were partly to blame, a lawyer can help you weigh that risk.
Six Years, a $25,000 Floor and Small Claims
You have time. Section 15-2-13 allows six years for an action for injuring goods or chattels. Proof is fresher in the first few months, though.
A minimum South Dakota policy pays at most $25,000 for property damage in one accident. Small claims court takes cases of $12,000 or less, according to the Unified Judicial System. If an insurer will not deal fairly, file a Division of Insurance complaint.