Diminished value claims in Louisiana

Can you claim diminished value in Louisiana?

Short answer: Yes, from the at-fault driver's insurer (La. R.S. 9:2800.17).

By statute, when a third party's negligence damages a vehicle without destroying it, the owner may recover the diminution in value as additional damages if they prove by a preponderance that, even repaired to pre-loss condition, its fair market value would be less than before; total recovery is capped at the pre-loss fair market value. First-party: appellate courts held that once the insurer pays for full and adequate physical repair, it need not pay for reduced market value under 'repair or replace' policy language (Townsend; Campbell).

Source: La. R.S. 9:2800.17; Townsend v. State Farm Mut. Auto. Ins. Co., 793 So. 2d 473 (La. App. 2 Cir. 2001); Campbell v. Markel Am. Ins. Co., 822 So. 2d 617 (La. App. 1 Cir. 2001)

See which states allow diminished value claims.

Does your own insurance pay diminished value in Louisiana?

Short answer: Usually not. The claim is normally against the at-fault driver's insurer.

A claim on your own collision coverage depends on what your policy promises. Read its definition of "loss" and any exclusion for diminution in value before you ask. The Louisiana rule above is the starting point; your policy wording can narrow it.

How to file a diminished value claim in Louisiana

1. Finish the repair and get the final invoice showing every part and labor operation.
2. Document the pre-accident value of your exact trim and mileage.
3. Collect proof of the loss: a vehicle history report showing the accident, written trade-in offers, or an independent appraisal.
4. Send a written demand to the at-fault driver's insurer with a specific amount and your evidence.
5. If they refuse or lowball, you can sue the at-fault driver in small claims court before the deadline.

How to document the value before and after

• Before: save listings for cars of the same year, trim and mileage from just before the accident, and any records of options, upgrades and maintenance.
• After: get at least two written trade-in or purchase offers from dealers who see the repaired car and its history report.
• Keep the repair invoice, photos of the damage and the history report entry; they show what a buyer will see.

Step-by-step help with each part: how to file a diminished value claim.

Will the insurer use the 17c formula in Louisiana?

Many adjusters calculate diminished value by capping it at 10% of the car's value and then applying damage and mileage multipliers. The result is often a few hundred dollars. It is not based on what buyers actually pay, and you do not have to accept it. How the 17c formula works.

Deadline to file a diminished value claim in Louisiana

Short answer: You generally have 2 years to sue the at-fault driver for damage to your car (La. Civ. Code art. 3493.1 (Acts 2024, No. 423, eff. July 1, 2024)). Send your written demand well before then.

Property damage claims in Louisiana generally must be filed in court within 2 years of the accident.

Source: La. Civ. Code art. 3493.1 (Acts 2024, No. 423, eff. July 1, 2024): 2-year liberative prescription for delictual actions; damage from events before July 1, 2024 falls under the former 1-year period

How to file an insurance complaint in Louisiana

Short answer: File a free complaint with the Louisiana Department of Insurance online. It asks the insurer for a written response, but it cannot set the amount you are owed.

If an insurer ignores your claim or will not explain a refusal, the state insurance regulator takes complaints.