Diminished value claim in California
California has a tort rule for claims against the at-fault driver and an appellate ruling on your own policy. Here is what each says.
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"Third party" here means a claim against the at-fault driver's liability insurer. "First party" means a claim under your own collision cover.
Claim against the at-fault driver's insurer
The California Supreme Court stated the tort rule in Merchant Shippers Assn. v. Kellogg Express & Draying Co., 28 Cal.2d 594 (1946): "if the damaged property cannot be completely repaired, the measure of damages is the difference between the value before the injury and its value after the repairs have been made, plus the reasonable cost of making the repairs." That case concerned a machine, not a car; a later appellate decision, Ray v. Farmers (below), confirms it states the tort rule.
Claim under your own policy
Not after repair to "like kind and quality". In Ray v. Farmers Insurance Exchange, 200 Cal.App.3d 1411 (1988), a decision of the California Court of Appeal (not the California Supreme Court), the court said: "To the extent Ray's automobile was repaired to its preaccident safe, mechanical, and cosmetic condition, Farmers's obligation under the policy of insurance to repair to 'like kind and quality' was discharged."
Is there a set formula in California?
No clear rule. No California statute sets a diminished value formula.
Evidence to gather
The evidence an insurer will expect is the same in every state: see the evidence checklist in the main guide, and use the free worksheet to record comparable listings and offers.
Related guides
- Diminished value claim after repair (main guide, with the evidence checklist)
- Diminished value claim in Georgia
- Diminished value claim in Texas
- Diminished value claim in Florida
- Free diminished value worksheet
Frequently asked questions
Can I claim diminished value from the at-fault driver's insurer in California?
If the damaged property cannot be completely repaired, the tort measure is the loss in value after repair plus the reasonable cost of repairs (Merchant Shippers v. Kellogg, Cal. 1946).
Does my own California auto policy cover diminished value?
Not after repair to like kind and quality, according to the California Court of Appeal in Ray v. Farmers Insurance Exchange (1988).
Is there a set diminished value formula in California?
No clear rule. No California statute sets a diminished value formula.