Property-damage-only car accident claims in California: When you have vehicle damage but no bodily injury (or when you want to resolve property damage separately from injury claims), California law provides specific remedies including repair costs, total loss compensation, diminished value, and rental car reimbursement.
California is unique in allowing recovery for diminished value—the difference between your car's pre-accident value and post-repair value—even after the vehicle is fully repaired. This guide covers how to demand full property damage compensation under California law, including Civ. Code § 3333 (damage to property) and case law governing total loss valuation.
I'm a California-licensed attorney who handles property damage demand letters and appraisal disputes personally. For broader car accident demand guidance, see the main California car accident demand letters guide.
In California car accident property damage claims, you are entitled to recover:
California applies pure comparative negligence (Civ. Code § 1714) to property damage claims. If you are found 20% at fault, your property damage recovery is reduced by 20%.
You have three years from the date of the accident to file a lawsuit for property damage. This is distinct from the 2-year statute for personal injury claims. Most property damage claims settle or are resolved within weeks or months, well before the deadline.
A vehicle is considered a "total loss" when the cost of repairs plus salvage value equals or exceeds the actual cash value (ACV) of the vehicle. California does not have a statutory total loss threshold (unlike some states that use 75% or 80%), so the formula is:
| Repair Claim | Total Loss Claim |
|---|---|
| Demand: Full repair cost (itemized estimate) | Demand: Actual cash value (ACV) based on comparable sales |
| Plus: Diminished value | Plus: Sales tax, registration (pro-rated) |
| Plus: Rental car during repair | Plus: Rental car until replacement purchased (7-14 days) |
| Plus: Towing and storage | Plus: Towing and storage (reasonable period) |
| You keep your car (repaired) | Insurer keeps salvage (or you retain and receive ACV - salvage value) |
Diminished value is the reduction in your vehicle's fair market value caused by the accident, separate from repair costs. It reflects the reality that buyers pay less for vehicles with accident histories, even if repairs were done correctly.
California courts have not adopted a single formula. Common methods include:
Example vehicle: 2022 Honda Accord, ACV $28,000, 25,000 miles, moderate damage (front bumper, hood, fender, headlight).
Calculation:
California law requires a comparable vehicle. Insurers often try to limit you to economy class regardless of your vehicle type. You are entitled to:
California law allows recovery of fair rental value even if you do not actually rent a car (e.g., you borrow a friend's car, use public transit, or work from home during repair period). The measure is the market rate for renting a comparable vehicle, not your actual out-of-pocket cost.
I am a California-licensed attorney who personally handles property damage claims, including total loss disputes, diminished value claims, and appraisal proceedings. Property damage claims can be resolved quickly if you present clear documentation and understand California's unique rules (diminished value, OEM parts, loss-of-use).
Probably not. Most California collision coverage policies exclude diminished value. The policy language typically states coverage is for "direct and accidental loss," which courts interpret as repair costs only, not loss of market value.
However, if you are claiming against the at-fault driver's liability policy, you can claim diminished value under Civ. Code § 3333 as compensatory damages.
Strategy: If you have collision coverage, use it to get your car repaired quickly (pay your deductible). Then pursue the at-fault driver's insurer for (1) your deductible, (2) diminished value, and (3) rental car costs. Your collision carrier will subrogate for the repair costs they paid.
Challenge the ACV with documentation:
If the insurer still won't budge, invoke the appraisal clause in the policy. Both sides select an appraiser, and if they disagree, a neutral umpire decides. Appraisal is binding and faster than litigation.
Statute of limitations: 3 years from the date of the accident (Code Civ. Proc. § 338). This is separate from the 2-year SOL for bodily injury.
Practical timeline: Most property damage claims must be filed with the insurer within 30-90 days per policy requirements. Waiting too long may allow the insurer to deny based on late notice.
Recommendation: File property damage claim immediately after the accident (within days or weeks, not months). Property damage is usually resolved quickly (weeks to months), well before the 3-year SOL.
Yes, if OEM parts are necessary to restore your vehicle to pre-accident condition. California Insurance Code § 758.5 requires insurers to disclose when aftermarket parts are used, but it does not mandate OEM parts.
When OEM is necessary:
You must prove OEM is necessary. Attach body shop recommendation, manufacturer warranty documentation, or safety analysis showing aftermarket parts are inadequate.
If you sign a release for property damage and later discover hidden damage (e.g., frame damage not visible in initial inspection), reopening the claim is very difficult. The release is a binding contract.
Exceptions (rare):
Prevention: Before signing any release, have a qualified body shop perform a thorough inspection, including teardown if necessary. Ensure all damage is identified before settling.
Yes. If your car is declared a total loss, you can elect to retain the salvage. The insurer will deduct the salvage value from the ACV and pay you the difference.
Example: ACV is $15,000. Salvage value is $3,500. If insurer keeps salvage, you receive $15,000. If you keep salvage, you receive $11,500.
Why keep salvage: You may want to repair the vehicle yourself, sell it for parts, or rebuild it. However, once a vehicle is totaled, it receives a salvage title in California, which significantly reduces resale value and may make the vehicle uninsurable or ineligible for registration until it passes DMV salvage inspection.
When to keep salvage: Rare/classic vehicles where parts are valuable, or if repair cost is close to ACV and you can do repairs yourself for less.