Personal Auto InsuranceQuestion 23 of 158
California law generally treats 'diminished value' (the loss in a vehicle's market value after a high-quality repair) under a first-party physical damage claim as:
a.Not recoverable as part of the insured's first-party collision claim against her own insurer
b.Always recoverable up to 30% of the pre-loss ACV
c.Recoverable only if the vehicle was less than one year old at the time of loss
d.Recoverable only against the insurer of the at-fault driver, never the insured's own insurer
Explanation
Under California first-party property/auto principles, the insured's collision claim against her own insurer pays the cost of repair or actual cash value, and diminished value (the residual loss in resale value after repair) is generally not recoverable in that first-party claim. Diminished value may, in some circumstances, be pursued against the at-fault third party in tort, but not from the insured's own collision coverage.
Law Reference: Cal. Ins. Code §11580.1Practice all 158 questions free — no signup required.
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