The state Supreme Court has issued a decision that limits the amount insurers must pay to repair damaged vehicles. The case involved a State Farm policyholder who argued that the company should pay for the full restoration value of his damaged pickup truck in addition to the actual repair costs.

“The South Carolina Supreme Court has strongly reinforced the true meaning of the basic auto insurance policy,” said Alliance Director of Claims, Kirk Hansen. “Policies are intended to provide for the cost of repairs necessary to restore the vehicle to its previous operating condition and appearance.”

He noted that nearly a dozen states have now ruled against the concept of diminished value, and only Georgia has gone in the opposite direction (in the case of State Farm v. Mabry in 2001). The South Carolina ruling is significant in that the plaintiff based his case on the Georgia ruling.

Allstate pays $1,000,000

Allstate settled in California by paying $1,000,000 to the California Department of Motor Vehicles for failing to adhere to state laws and regulations regarding access and use of confidential records.