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Texas policyholders have raised questions about an insurer’s obligations under the standard Texas personal auto policy when the insurer pays a claim to restore a damaged automobile to its pre-accident condition. Some insureds have questioned whether an insurance company has a right to take “betterment deductions” from its property damage claims payments. Other insureds have questioned the insurer’s refusal to pay a claim for “diminution in value” of the vehicle when it has been repaired at the insurance company’s cost.

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