Automobile Damages – Actual Cash Value And Diminished Value

Insurance lawyers trying to help client with automobile property damage will find they need to understand and be able to explain the damages in two ways.  Actual Cash Value (ACV) and diminished value. “Actual cash value” is the value of the vehicle, less depreciation.  The limitation of “actual cash value” has been upheld and found to be reasonable cash market value of the vehicle before the loss.  This is discussed in the 1968, Texas Supreme Court opinion styled, Superior Pontiac Co. v. Queen Insurance Company. Even after a vehicle is fully repaired, its value may still be diminished, but the insurer is not liable to pay for this diminution of value.  This is discussed in the 20023, Texas Supreme Court opinion styled, American Manufacturers Insurance Co. v. Schaefer.  Keep in mind this is in the context of your own insurer, not the other guys insurance company.  The other guy’s insurance can be held responsible for…

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