Diminished value claims by state / Louisiana
Diminished value claims in Louisiana
By the Reclaim research team · Last updated · Legal review pending
Louisiana has a statute on diminished value: when another driver's negligence damages your car without destroying it, Louisiana Revised Statutes 9:2800.17 lets you recover the drop in its fair market value as additional damages, if you prove it by a preponderance of the evidence. For claims arising after July 1, 2024, Civil Code article 3493.1 gives two years to file suit.
- Other driver at fault
- Allowed by statute (La. R.S. 9:2800.17).
- Your own policy
- Generally no under "repair or replace" wording (Campbell v. Markel, 2001).
- Deadline to file suit
- 2 years
Claims against the at-fault driver
La. R.S. 9:2800.17 applies when a motor vehicle is damaged through the negligence of a third party without being destroyed. If the owner proves that, even repaired to its pre-loss condition, the car's fair market value would be less than before, the owner can recover that drop as additional damages.
The statute caps the total recovery at the car's fair market value before the damage, and says the lost value is counted when deciding whether the car is a total loss.
Louisiana appeals courts have also allowed lost value on top of repair cost when it was proven. In Orillac v. Solomon (2000), the Second Circuit affirmed an award based on unrebutted testimony from a dealership used-car manager after the car was repaired.
Claims under your own policy
Louisiana appeals courts have held that a collision policy promising to repair or replace the car is satisfied by a full and adequate physical repair, and does not also cover lost value (Campbell v. Markel American Insurance Co., 2001; Townsend v. State Farm, 2001). A federal appeals court reached the same result under Louisiana law in Manguno v. Prudential (2002).
The statute above covers damage caused by a negligent third party. The wording of your own policy controls a claim against your own insurer.
Filing deadline
Louisiana calls the filing deadline "liberative prescription." Civil Code article 3493.1, added by Act 423 of 2024 and effective July 1, 2024, sets two years for delictual (tort) actions, running from the day the injury or damage is sustained.
Act 423 applies only to actions arising after its effective date; earlier claims had one year. A Louisiana attorney can confirm which period applies to your dates.
How diminished value claims tend to go in Louisiana
Louisiana requires insurers to make a written offer to settle any property damage claim, including a third-party claim, within a set number of days after receiving satisfactory proof of loss (La. R.S. 22:1892(A)(4)). The statute also provides for penalties when the deadlines are missed under the conditions it describes.
Because the statute puts the burden on the owner to prove the drop in value, the evidence matters more than the formula.
Many insurers answer a diminished value request with a formula rather than a market study. The best known is the 17c formula, which came out of the Georgia class actions over first-party claims that followed State Farm v. Mabry; its name comes from paragraph 17(c) of an injunction in one of them. It starts from a capped share of the car's value before the crash, then reduces it with damage and mileage modifiers. A law-firm survey notes it was built for that class action and has not been formally adopted for general use.
Adjusters commonly ask for proof that the repaired car is worth less, not only proof that it was damaged. Records that tend to matter: the final repair invoice and photos, the estimate showing any structural or frame work, the vehicle history report entry, and written market evidence such as dealer quotes or listings for the same car with and without an accident history.
If you have a complaint about claim handling
The Louisiana Department of Insurance takes consumer complaints about how an insurer handled a claim, online or by mail. File with the Louisiana Department of Insurance.
Next steps
Questions
- Is diminished value recoverable in Louisiana?
- Yes, from a negligent driver. La. R.S. 9:2800.17 allows the drop in fair market value as additional damages when the owner proves it by a preponderance of the evidence, with the total capped at the car's value before the damage.
- Does my own collision coverage pay diminished value in Louisiana?
- Generally not under "repair or replace" wording, according to Louisiana appeals courts (Campbell v. Markel, 2001). Your policy's exact wording controls.
- How long do I have in Louisiana?
- For claims arising after July 1, 2024, two years from the day of the damage under Civil Code article 3493.1. Earlier claims had one year, so confirm your dates with a Louisiana attorney.
- Does Reclaim handle the claim for me?
- No. Reclaim does not contact your insurer or act for you. This page is general information, not legal advice, and you stay in charge of your claim.
Check your Louisiana diminished value for free
If you kept the car after repairs and the other driver's insurer is handling the claim, the free check gives you an objective figure. It is not a recovery target.
- Who was at fault, and whether the repairs are finished.
- Roughly what the car was worth and what the repairs cost.
- Then your name and number, and the repair invoice.
This page is general information about Louisiana law, not legal advice. Laws and court decisions change. For advice on your own claim and dates, talk with a Louisiana attorney.