Louisiana
Diminished Value Overview
In Louisiana, a vehicle involved in a not at fault accident may lose market value even after repairs are completed. When another driver is responsible for the accident, Louisiana law allows you to pursue compensation for that loss in value from the at fault driver’s insurance company as part of your property damage claim.
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01
Statute of Limitations
Louisiana allows one year from the date of the accident to pursue a diminished value claim.
02
Third-Party Claims
Diminished value claims can be pursued against the at fault driver’s liability insurance when another driver caused the accident.
03
First-Party and Uninsured Motorist
Most first party policies in Louisiana do not cover diminished value, and uninsured or underinsured motorist coverage generally does not apply to diminished value claims.
04
Small Claims Court Limit
Louisiana small claims court allows diminished value claims up to $5,000.
Louisiana Diminished Value Law
Louisiana law expressly recognizes diminished value as a recoverable element of property damage when a vehicle is damaged by another party’s negligence. When a vehicle is repairable but worth less after repairs, that loss in market value may be recovered in a third party claim.
Louisiana Revised Statute § 9:2800.17
Louisiana law provides that when a motor vehicle is damaged through the negligence of a third party and is not a total loss, the owner may recover damages equal to the vehicle’s diminished value if the repaired vehicle is worth less than it was before the damage occurred. The statute requires proof by a preponderance of the evidence that a loss in fair market value remains after repairs are completed.
The statute further clarifies that total recovery, including diminished value, may not exceed the vehicle’s fair market value prior to the loss.