Valuation: the most the insurer pays is the lesser of the auto's actual cash value or the amount needed to repair or replace it with property of like kind and quality, minus the deductible. Example: actual cash value $9,000, repair estimate $11,000, deductible $500. The insurer pays $9,000 − $500 = $8,500; the higher estimate does not raise the limit.
Settlement options: the insurer may pay in money, repair or replace the damaged property, or return stolen property at its own expense and pay for damage from the theft. It may also keep all or part of the property at an agreed or appraised value. In California, however, no insurer may require that an auto be repaired at a specific repair shop (10 CCR §2695.8(e)(1)).
California total losses (10 CCR §2695.8):
A cash settlement is based on the actual cost of a comparable automobile, less any deductible, and includes applicable taxes and one-time transfer fees, whether or not the insured buys a replacement.
If the insurer settles without identifying a specific comparable auto, the insured has 35 calendar days after receiving payment or the final offer to say that a comparable auto cannot be bought for that amount. The insurer must then reopen the claim.
Transportation expenses: after a total theft of an auto with OTC coverage, the ISO policy pays transportation expenses starting 48 hours after the theft and ending when the auto is returned or the insurer pays for it, with no deductible. The 2018 form's limits are $30 per day and $900 in total. Example: a car stolen for 12 days, rental at $45 a day: 10 days × $30 = $300.
Duties after a loss (Part E): a person seeking Part D coverage must protect the auto from further loss (the insurer pays reasonable expenses of doing so), promptly notify the police of a theft, and allow the insurer to inspect and appraise the auto before repair or disposal. Nothing requires the insured to pay for repairs first.