What to do When Your Car is Damaged
in a South Carolina Car Accident
Getting into a car accident is stressful. If your car is damaged or totaled, handling insurance claims can quickly become overwhelming. South Carolina law gives you certain rights when it comes to property damage claims—but knowing what those rights are can make the process much smoother. Below are answers to some of the most common questions we hear from clients about car accident property damage claims.
In This Article:
- What Insurance Pays for Car Damage After a Crash?
- Am I entitled to a Rental Car?
- What Happens if My Car is a Total Loss?
- Can I Recover for Depreciation or Diminished Value?
- Can I Recover for Personal Property Damaged in the Accident?
- Does It Matter if the Other Driver Was Drunk or Reckless?
- What if the Insurance Company Refuses to Pay for my Car Damage?
1. What Insurance Pays for Car Damage After a Crash?
If your car was damaged in an accident, the repair (or replacement) costs are usually covered by insurance. Which insurance applies depends on the circumstances:
Liability Coverage & Uninsured Motorist (UM) Coverage
South Carolina law requires every registered vehicle to carry both liability insurance and uninsured motorist (UM) coverage.[1] Both cover property damage claims when another driver is at fault.[2]
Liability Insurance: If the at-fault driver is insured, you can pursue a claim against their liability policy.
Uninsured Motorist (UM) Coverage: If the at-fault driver does not have insurance, or you were the victim of a hit-and-run accident involving an unknown driver, you can make a claim under your own UM coverage.
Underinsured Motorist (UIM) Coverage
Underinsured motorist (UIM) coverage provides additional protection if the at-fault driver’s liability limits aren’t enough to cover your losses. Unlike liability and UM coverage, UIM is optional¾but insurers must offer it when you buy a car insurance policy in South Carolina.[3]
If your damages exceed the other driver’s liability limits, you may be able to recover the difference through your UIM coverage, up to the limits of your own policy.
Example:
Suppose you are rear-ended by Dave, who is at fault. Your car is worth $50,000, and it’s a total loss. Dave’s liability policy limit is $25,000. You have UIM coverage with a $25,000 limit.[4]
Dave’s insurer pays $25,000 (their policy limit).
Your insurer pays $25,000 under your UIM coverage.
Together, you recover the full $50,000.
Collision & Comprehensive Coverage
Collision Insurance pays for damage to your own vehicle if you cause a wreck.[5] In South Carolina, liability, UM, and UIM coverages only apply when someone else is at fault. If you were responsible for the accident, you would need to use your collision coverage to get your car repaired or replaced.
Comprehensive Insurance (sometimes called “other-than-collision insurance”) applies when your car is damaged by something other than a crash¾for example, hail, fire, theft, or vandalism.[6] If your vehicle was damaged in one of these situations, you would file a claim under your comprehensive policy.
Collision and comprehensive insurance are not required by South Carolina law, so they will only apply if you choose to add it to your policy.
2. Am I entitled to a Rental Car?
In most cases, yes. If another driver was at fault, their liability insurance should cover the cost of a rental car while yours is being repaired or replaced. If that doesn’t happen, you still have options:
Option 1: Use Your Own Insurance
If your car insurance policy includes rental coverage, you can request a rental car through your own insurer. This does not let the at-fault driver off the hook¾your insurer will usually recover the cost later through a process called subrogation.[7]
Important: You may need to pay a deductible before your insurer provides benefits.
Option 2: Pay for a Rental (or Go Without) and Claim “Loss of Use”
South Carolina law requires at-fault drivers to pay for your “loss of use”¾the inconvenience of not having your car.[8] The amount they must pay is typically based on the rental value of a substitute vehicle.[9]
If you rent a car yourself, keep your receipts and submit them for reimbursement.
If you don’t rent, you can still try to recover loss of use by submitting quotes from rental car companies for a comparable vehicle.
3. What Happens if My Car is a Total Loss?
In South Carolina, a vehicle must be declared a total loss if repair costs equal 75% or more of its fair market value.[10] When that happens, the insurance company must send the car’s title to the DMV to be converted into a salvage title.[11]
From there, you’ll usually have two choices:
Option 1: Take the Fair Market Value and Turn Over the Car
The insurer pays you what your car was worth before the accident (its fair market value) and keeps the salvage title.
Example: If your car was worth $20,000 before the crash, the insurer pays you the $20,000 and takes the car.
Option 2: Keep the Car and Take a Reduced Payment
You can keep the vehicle, but your payout will be reduced by the car’s salvage value.[12]
Example: If your car was worth $20,000 before the crash and $2,000 with a salvage title, the insurer pays you $18,000 and you keep the car.
4. Can I Recover for Depreciation or Diminished Value?
Even if your car is repaired after an accident, it may still lose value. This is called diminished value (sometimes referred to as depreciation).
Diminished value is the difference between:
Your car’s fair market value before the accident; and
It’s fair market value after repairs.[13]
In South Carolina, you can make a claim for diminished value if repairs do not fully restore your car to its prior condition.[14]
Example:
Value of car before accident: $20,000
Value of car after repairs: $18,000
Diminished value claim: $2,000
5. Can I Recover for Personal Property Damaged in the Accident?
In addition to your vehicle, you may be entitled to compensation for personal property that was damaged or destroyed in the crash. This can include:
Electronics such as phones, laptops, or tablets
Child car seats
Clothing, eyeglasses, or jewelry
Tools, equipment, or other items stored in your car
Documenting Your Loss
To ensure your claim is successful:
Keep damaged items if possible (or take clear photos).
Keep receipts, invoices, or estimates to document the value of your items.
Passengers can also make claims for personal property damage, even if they don’t own the vehicle.
6. Does It Matter if the Other Driver Was Drunk or Reckless?
Usually, your recovery after a car accident is limited to your actual damages ¾ things like repairs, diminished value, and rental car costs. These damages are designed to put you back in the position you were in before the wreck.[15]
But if the at-fault driver was drunk, racing, running from the police, or otherwise driving recklessly, you may also have the right to seek punitive damages. Unlike actual damages, punitive damages are not about reimbursement ¾ they are meant to punish dangerous behavior and discourage it in the future.[16]
Because punitive damages depend on multiple factors and insurance companies rarely pay them voluntarily, these claims are often more complex. If the at-fault driver in your accident was arrested for DUI or reckless driving, it’s important to speak with an attorney who can evaluate whether punitive damages may apply in your case.
7. What if the Insurance Company Refuses to Pay for my Car Damage?
If the at-fault driver’s insurance company makes an unfair offer ¾ or refuses to pay your property damage claim ¾ you don’t have to accept it. In South Carolina, you generally have two alternative options:
1. Property Damage Arbitration
In South Carolina, property damage arbitration is available as an alternative to filing a lawsuit.
Instead of going before a judge or jury, your case is decided by an arbitration panel of attorneys appointed by the court.[17]
The arbitration panel has the power to award both actual damages and, in some cases, punitive damages – which means you can be fully compensated.[18]
The process is designed to be simpler than a traditional lawsuit. The rules of evidence are relaxed, so it is easier to represent yourself if you choose.[19]
To prepare, you’ll need to gather evidence such as: [20]
Two Signed Estimates of your car’s damage
Signed Receipts for car repairs;
Bills or Receipts for other property damages; and
Any witnesses who have knowledge of the accident
Two Signed Estimates of your car’s damage
Signed Receipts for car repairs;
Bills or Receipts for other property damages; and
Any witnesses who have knowledge of the accident
If you disagree with the decision of the arbitration panel, you can appeal to the Circuit Court for a new trial (trial de novo) within 20 days.[21]
File a Lawsuit
If you would prefer a jury trial, you can skip arbitration and file a lawsuit. South Carolina’s Constitution guarantees you the right to a jury trial in lawsuits arising from car accidents.[22]
It is usually a good idea to consult with an attorney before filing a lawsuit. Unlike property arbitration, the rules of civil procedure and evidence are usually strictly enforced.
Whether you choose to pursue the case on your own or with an attorney, you must file the lawsuit within the statute of limitations (deadline for filing a lawsuit).[23]
In most cases, the statute of limitations is 3 years from the date of the accident.[24]
If you’re suing a state entity under the South Carolina Tort Claims Act, the statute of limitations is 2 years from the date of the incident.[25]
However, the deadline may be even shorter in certain circumstances.
If you’re not sure which option is right for you, an experienced car accident attorney can help you weigh the pros and cons.
Conclusion
Property damage claims can seem straightforward, but insurance companies don’t always make the process easy. From rental cars to total loss valuations, you deserve to understand your rights and options. If you’ve been in a South Carolina car accident, speaking with an experienced attorney can help you protect your interests and avoid costly mistakes.
If you have questions, we’re here to help. You can schedule a consultation by calling our office at (803) 359-9000 or using the link below.
Last Updated: 9/24/25
About the Author
Jason Yonge is a litigation attorney in Lexington, South Carolina. He represents clients across the state in serious personal injury, car accident, and wrongful death cases. For honest, straightforward advice about your situation, contact Jason to see how he can help.
[1] S.C. Code Ann. § 56-10-220; S.C. Code Ann. § 38-77-140; S.C. Code Ann. § 38-77-150.
[2] S.C. Code Ann. § 38-77-140(A)(3); S.C. Code Ann. § 38-77-150(A).
[3] S.C. Code Ann. § 38-77-160;
[4] Purvis v. State Farm Mut. Auto Ins. Co., 304 S.C. 283, 285-86, 403 S.E.2d 662, 664 (1991).
[5] Black’s Law Dictionary (12th ed. 2024) (Collision insurance typically “protects against physical loss to [your] vehicle resulting from rollover or collision with any object.”).
[6] Black’s Law Dictionary (12th ed. 2024).
[7] Black’s Law Dictionary (12th ed. 2024).
[8] Coleman v. Levkoff, 128 S.C. 487, 122 S.E. 875 (1924) (“As bearing on the question of the value of the use of the property of which the owner was deprived, the rental value or expense of hiring a substitute for that of which he was deprived is a pertinent consideration.”); S.C. Code Ann. § 38-77-740(b) (“Property damages must be awarded as provided by law, including, but not limited to . . . loss of use.”).
[9] Id.
[10] S.C. Code Ann. § 56-19-480(G). However, this rule does not apply to antique vehicles or vehicles with a FMV of $2,000 or less. See Id.
[11] S.C. Code Ann. § 56-19-480(B).
[12] Coleman v. Levkoff, 128 S.C. 487, 122 S.E. 875 (1924) (“The general rule is that the owner of personal property, injured by the negligence of another, is entitled to recover the difference between the market value of the property immediately before the injury and its market value immediately after the injury.”).
[13] Coleman v. Levkoff, 128 S.C. 487, 122 S.E 875 (1924) (“If as a result of the repairs the property is not restored to a condition in which its market value is equal to the market value before the injury, then the measure of damages is the difference in the market value of the property immediately before the injury and its market value immediately thereafter, in its condition of partial restoration, together with the reasonable cost of the repairs made.”); see also Newman v. Brown, 228 S.C. 472, 90 S.E.2d 649 (1955).
[14] Hutson v. Cummins Carolinas, Inc., 280 S.C. 552, 558, 314 S.E.2d 19, 23 (Ct. App. 1984) (“Our Supreme Court has held that where a vehicle is negligently damaged, the cost to repair it or depreciation in the vehicle’s value (cost to repair may constitute a part of the measure of depreciation), together with the value of the loss of use of the vehicle is recoverable against the tortfeasor.”).
[15] Clark v. Cantrell, 339 S.C. 369, 378, 529 S.E.2d 528, 533 (2000); Black’s Law Dictionary (12th ed. 2024) (The goal of actual damages is to “restore the injured party, as nearly as possible through the payment of money, to the same position he or she was in before the wrongful injury occurred.”).
[16] Clark v. Cantrell, 339 S.C. 369, 378, 529 S.E.2d 528, 533 (2000).
[17] Cooper v. Poston, 326 S.C. 46, 483 S.E.2d 750 (1997); see also S.C. Code Ann. § 38-77-710.
[18] S.C. Code Ann. § 38-77-10; S.C. Code Ann. § 38-77-710.
[19] S.C. Code Ann. § 38-77-710.
[20] S.C. Code Ann. § 38-77-740(a).
[21] Cooper v. Poston, 326 S.C. 46, 483 S.E.2d 750 (1997); see also S.C. Code Ann. § 38-77-770.
[22] Cooper v. Poston, 326 S.C. 46, 483 S.E.2d 750 (1997); S.C. Const. art. I, § 14.
[23] S.C. Code Ann. § 15-3-20; Rule 3, SCRCP.
[24] S.C. Code Ann. § 15-3-530(4).
[25] S.C. Code Ann. § 15-78-110. The two-year statute of limitations can be extended to three years if the claimant files a verified claim within one year of the accident.
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