If you’re involved in a wreck in Louisiana and your vehicle is repairable (and not a total loss), you should know that you likely have a claim for the diminished value of your vehicle. I’m sure you’ve all seen the commercials advising you to get the Carfax report, right? The reason being, if people know your car is involved in a wreck, chances are they are willing to pay less than if your car had not been involved in a wreck.
The difference between the value of a vehicle which has never been wrecked and the market value of that same vehicle after being wrecked and repaired is known as diminished value. If you have been in a wreck that is not your fault, you may very well have a claim for the diminished or loss of value to your vehicle.
The Louisiana Law that applies is La.R.S. §2800.17, which states:
Whenever a motor vehicle is damaged through the negligence of a third-party without being destroyed, and if the owner can prove by a preponderance of the evidence that, if the vehicle were repaired to its pre-loss condition, its fair market value would be less than its value before it was damaged, the owner of the damaged vehicle shall be entitled to recover as additional damages an amount equal to the diminution in the value of the vehicle. Notwithstanding, the total damages recovered by the owner shall not exceed the fair market value of the vehicle prior to when it was damaged, and the amount paid for the diminution of value shall be considered in determining whether a vehicle is a total loss pursuant to R.S. 32:702.
In Louisiana you could receive compensation for the diminished value through the at-fault party’s insurance company. This is because the insurance company of the at-fault party has the obligation to make the victim of the accident “whole” again, which in this case would mean restoring the vehicle to its fair and full market value. This is covered by the liability portion of the at fault driver’s insurance policy.
Sidenote – we always recommend that everyone carry Collision Coverage and Uninsured Motorist Coverage because if the other driver doesn’t have insurance, you’ll want to be completely covered by yours. Often times, however, you cannot collect diminished value from your own insurance. Regardless, I never pass on an opportunity to tell you to buy Collision Coverage and Uninsured Motorist Coverage!
So how do you recover the amount by which your car’s value has been diminished? The process can be tedious but if you’re willing to put in the effort to make a claim, you’ll likely be paid.
One way to do so is by applying this mathematical formula.
Another possible way is obtaining an estimate by an independent appraiser. At Chaz Roberts Law, we often urge the insurance company to pay for the cost of this appraisal for our clients.
Finally, when the vehicle’s damage and value necessitate it, we can prove the diminished value by hiring our own expert to conduct a thorough appraisal and recommendation.
So now that you have all this information, you’ll need to take it and give it to the at-fault party’s insurance company. To do this you should contact the at-fault party’s insurance company with documentation of repairs, photos, documentation of the car’s value pre-wreck, and an appraisal from a professional appraiser. * NOTE - Never discuss your injuries with the at-fault party’s insurance adjuster! *
All of this should be done as soon as possible after the wreck and repair, since it’s the insurance company of the at-fault party that will be paying you for your diminished value claim AND because your car can lose value with age the longer you wait to file a claim. Filing a Diminished Value claim may be a frustrating process, but we hope that this blog gave you the information you need to get the money you deserve. If you have questions about any of this, we are more than happy to help answer them. Simply call our office at 337-504-3202.
