Louisiana Diminished Value Claims
How Diminished Value Claims Work
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. A Louisiana diminished value claim allows you to recover the difference between what your vehicle was worth before the accident and what it is worth after repairs. Louisiana recognizes diminished value as part of a third party 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 exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
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.
Louisiana Diminished Value FAQs
Below are answers to common questions about Louisiana diminished value claims, including how claims work, time limits, and how loss in market value is calculated after an accident.
Does Louisiana allow diminished value claims?
Yes. Louisiana permits third party diminished value claims when another driver is responsible for the accident.
Can I file a diminished value claim in Louisiana if I was not at fault?
Yes. The at fault driver’s insurer may be responsible for measurable loss in market value in addition to repair costs.
Can I pursue diminished value against my own insurance in Louisiana?
Generally no, unless the policy specifically includes first party diminished value coverage.
How is diminished value calculated in Louisiana?
There is no mandated formula. Market based valuation methods analyzing comparable vehicles are commonly used to determine resale impact.
What is the statute of limitations for diminished value in Louisiana?
Louisiana generally allows one year for property damage claims.
Do insurance companies pay diminished value in Louisiana?
Yes, but Louisiana claims are often reviewed carefully and require thorough documentation demonstrating measurable market impact.
Still have a question?
If your accident occurred near a state line, diminished value rules may differ. You can compare claim processes in Texas, Arkansas, and Mississippi.