Diminished Value Appraisal in
Louisiana

Last updated: August 18, 2025

Louisiana law allows recovery of diminished value (DV) in third-party liability claims when another driver is at fault. However, first-party insurance policies in Louisiana usually exclude DV unless your policy expressly includes it. This guide explains when DV is recoverable in Louisiana, relevant statutes and case law, what documentation you need, and how a professional SnapClaim appraisal can help maximize your payout.

Does Louisiana Allow Diminished Value Claims?

Third-party (at-fault driver’s insurer)

Yes. Louisiana courts recognize DV as part of property damage claims against an at-fault driver. Even after quality repairs, you may recover for the reduction in your vehicle’s market value.

First-party (your own insurer)

No, unless included. Most Louisiana auto policies exclude DV. Unless your contract explicitly covers it, your carrier is only obligated to repair or declare the vehicle a total loss.

Key Louisiana Law & Authority

• Statute of limitations: Louisiana has a strict 1-year prescriptive period (similar to a statute of limitations) for property damage claims, one of the shortest in the nation.
• Case law: Courts recognize DV under Louisiana Civil Code property damage principles.
• Small claims court: The jurisdictional limit in Louisiana City Court small claims divisions is $5,000.
• Regulator: The Louisiana Department of Insurance oversees consumer auto insurance rights.

Types of Diminished Value in Louisiana

• Immediate DV: The value lost immediately after an accident but before repairs.
• Repair-related DV: Loss due to poor workmanship or visible defects.
• Inherent DV: The most common — even after professional repairs, a car with an accident history is worth less.

What You Need to Document

• Accident report: Obtain from the Louisiana State Police crash report portal or local police.
• Repair invoices: Keep all receipts showing completed work.
• Before-and-after photos: Visual evidence helps establish loss.
• Comparable vehicle listings: Demonstrate reduced resale value.
• Certified DV appraisal: Order a SnapClaim appraisal to quantify your loss.

Step-by-Step: Filing a Diminished Value Claim in Louisiana

1. Verify eligibility. Confirm the accident was caused by another driver.
2. Repair the vehicle. Proof of completed repairs is required before most insurers consider DV.
3. Order a DV appraisal. A SnapClaim certified appraisal provides market-based evidence.
4. Submit a demand letter. Include the appraisal, repair bills, and police report.
5. Negotiate with the insurer. Expect resistance; insurers often undervalue DV without strong evidence.
6. Escalate if needed. File in small claims ($5,000 limit) or higher court if the loss is greater.

Why a Louisiana DV Appraisal Matters

Louisiana insurers rarely pay DV without compelling documentation. A SnapClaim appraisal provides professional, market-supported analysis that strengthens your negotiating position. For total loss disputes, see our Fair Market Value Reports. All SnapClaim services come with a Money-Back Guarantee. For more information, visit our State DV Law Guide.