|By Pat Murphy; Pat Murphy|
An automobile insurance policy provided coverage for the diminished value of a post-accident, repaired car, the
The plaintiff's Honda Civic was damaged in a collision. The plaintiff's automobile insurer,
The plaintiff filed a class action against Farmers for breach of contract, alleging that the insurer was obligated under the terms of its policy to cover the diminished value of his repaired vehicle.
The court agreed that the Farmers policy provided coverage for diminished value after a car is repaired.
"Because the average insurance consumer would read Farmers' policy to provide coverage of equal value when a car is repaired, replaced, or 'totaled,' the coverage provision encompasses diminished value loss, and the limits of liability and payment of loss provisions do not unambiguously exclude it," the court said.
It noted that this was the minority view.
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