Partner at Charbonnet Law Firm LLC
Practice Areas: Car Accident, Slip-and-Fall, Work-related Injury
Filing a car accident claim in Louisiana isn’t always as simple as submitting a few papers and waiting for a check. Whether you’re dealing with minor fender benders or serious crashes that total your vehicle, the question of how much your claim is worth depends on several legal, financial, and practical factors.
One of the most overlooked components is diminished value—the loss in resale value of your car after an accident, even if it’s been fully repaired. Understanding how claims are calculated and what impacts your pay can assist you in making wise choices and avoiding expensive errors.
Louisiana follows a pure comparative fault system, which means each party’s compensation is reduced by their percentage of fault. Even if you’re partially at fault for the crash, you can still recover damages. However, the amount will be reduced accordingly.
For example, if your damages total $20,000 and you’re found to be 25% at fault, you would receive $15,000.
If you were 20% responsible for the accident, your diminished value compensation will be reduced by 20% under Louisiana’s comparative fault rule.
This rule, part of La. Civ. Code Art. 2323 applies to injury and property damage claims, including diminished value.
The extent of the damage to your car. Largely determines the amount of your claim. Severe damage generally leads to higher repair costs, which insurers consider when calculating payouts. Make sure you take photos or videos at the accident scene, as visual evidence can support your claim.
If you were hurt in the accident, your medical costs, missed work, and long-term effects are factored into the value of your claim. This includes emergency room visits, surgeries, therapy, and follow-up care. Keeping detailed medical records is essential to show the actual impact of your injuries.
Even if your car looks fine after repairs, it likely won’t be worth as much on the resale market. That drop in value is called diminished value, and in Louisiana, you have the legal right to file a claim for it.
Louisiana Revised Statute §9:2800.17 allows vehicle owners to recover the diminished value of their vehicle if it was damaged through the negligence of a third party.
There are three main types of diminished value you should know about:
|
Type of Diminished Value |
Definition |
When It Applies |
| Immediate Diminished Value | Loss in market value immediately after the accident, before repairs. | Right after the accident. |
| Inherent Diminished Value | Loss due to accident history, even if repairs are perfect. | Most common claim after repairs. |
| Repair-Related Diminished Value | Loss caused by poor repairs, non-OEM parts, or structural issues. | If repairs are not done properly. |
If you plan to sell or trade-in your vehicle, proving diminished value could significantly improve your recovery.
Louisiana’s “No Pay, No Play” law can significantly impact your ability to recover damages. If you don’t have the legally required insurance, you could be barred from collecting the first $15,000 for bodily injury and the first $25,000 for property damage—even if the accident wasn’t your fault.
This law underscores why having at least liability insurance is essential. It’s also smart to carry Uninsured/Underinsured Motorist (UM/UIM) coverage. If the at-fault driver doesn’t have insurance or doesn’t have enough to cover your losses, UM/UIM can step in to help you recover your damages.
Louisiana gives you just one year from the date of the accident to file a car accident or diminished value claim. This short deadline makes it critical to act quickly.
Under Louisiana law, drivers have one year from the date of the accident to file a diminished value lawsuit.
Waiting too long can result in losing your right to any compensation, no matter how strong your case may be.
Filing for diminished value in Louisiana takes more than just telling your insurer your car isn’t worth as much anymore. Here’s a general process to follow:
First, you’ll need a professional appraisal to document how much value your vehicle lost due to the accident. Next, gather all supporting documents—this includes the police report, repair invoices, photos of the damage, and records showing the car’s market value before and after the crash.
Then, submit a demand letter to the at-fault party’s insurance company. This letter should detail your claim and include all supporting documentation.
Be prepared to negotiate, as insurers often push back or offer lowball settlements. If negotiations stall, having an attorney can help you move forward, possibly through formal legal action.
One of the biggest hurdles is dealing with insurance adjusters who may use internal formulas—often referred to as “multipliers”—to estimate damages. These methods tend to undervalue diminished value, especially if the vehicle has been fully repaired.
Another issue is documentation. Without a strong paper trail, your claim may be denied or undervalued. A knowledgeable car accident attorney can help ensure that nothing is missed, mainly when the claim includes diminished value and injuries.
A diminished value claim compensates you for the loss in resale value of your car after an accident, even if repairs were made. It’s important because buyers often avoid vehicles with an accident history.
Any car owner whose vehicle was damaged due to another party’s fault may file a diminished value claim, provided they weren’t at fault and had insurance at the time.
You’ll need a certified appraisal, before-and-after market value estimates, repair records, and documentation of the accident to support your claim.
If your claim is denied, you can negotiate further or work with a car accident attorney to bring legal action within the allotted period.
The statute of limitations is one year from the date of the accident. Failing to act in that time will forfeit your right to pursue compensation.
Car accident claims in Louisiana involve more than just filing a report and waiting for a payout. From determining fault to assessing property damage, medical expenses, and diminished value, every detail can impact how much compensation you receive.
Louisiana’s unique laws make it even more critical to comprehend the timeframes and your rights. If you’ve been in an accident, don’t underestimate the value your car may have lost—especially when that value plays a key role in your recovery.
Charbonnet Law Firm, LLC has extensive experience helping New Orleans drivers handle complex car accident claims, including diminished value disputes. If you’re unsure how to proceed or need help maximizing your claim, our team is here to support you.
With over 50 years of legal experience serving families in the New Orleans area and surrounding Louisiana communities, our firm takes pride in providing clients with personalized legal services tailored to individual needs.
