What “diminished value” means

Diminished value refers to the market loss a vehicle suffers after collision damage and repair. Even if a car is repaired to factory specifications, buyers often pay less for a vehicle with an accident history. Diminished value claims seek to recover that loss from the party responsible for the damage (or that party’s insurer).

Step-by-step process to get a diminished value quote in Louisiana

1. Collect basic vehicle and claim information.
   • Vehicle year, make, model, trim and VIN.
   • Odometer reading at time of loss.
   • Date, location, and description of the crash.
   • Police report (if any) and the at-fault party information.
   • Repair invoice(s), parts lists, and photographs (before, during, and after repairs).
2. Decide who will appraise the diminished value.

   Options:

   • Independent diminished-value appraiser or auto appraiser who provides a written report and market analysis.
   • Dealership appraisal (some dealers will estimate how an accident history affects resale value).
   • Automotive valuation services (used-car guides plus local market adjustments) combined with a professional opinion.

   Tip: Independent appraisers who specialize in diminished value provide the strongest documentation because they include market comparables, inspection notes, and a clear methodology.

3. Schedule an inspection and get a written report.

   The appraiser should inspect the vehicle in person, review repair invoices and photos, and produce a written report that states:

   • Pre-accident condition and estimated pre-accident retail value.
   • Scope of damage and repairs performed.
   • Estimate of inherent diminished value (market loss) with supporting comparables and explanation of method used.
4. Present the quote and supporting documents to the insured’s insurer (or the at-fault insurer).

   Include: appraisal report, repair invoices, photos, market comps, and any proof of diminished resale value (dealer offers, trade-in quotes, or online pricing for comparable vehicles).

5. Negotiate or dispute the offer.

   Insurers often respond with a lower offer. Ask the insurer to explain its valuation methodology and to provide any contrary comparables or calculations. If they refuse to pay a reasonable amount, you can:

   • Request appraisal or independent dispute resolution if your policy or state procedure allows.
   • Send a demand letter with a deadline and your appraiser’s report.
   • Consider small-claims court for lower-value disputes, or file a suit in civil court for larger amounts.
6. Keep deadlines in mind.

   Louisiana has short deadlines for bringing property-damage claims. Check with the Louisiana Department of Insurance or a lawyer promptly so you do not lose rights to bring a claim. For practical planning, do not wait—obtain an appraisal as soon as repairs are complete and gather documentation right away.

What an appraisal report usually contains

• Inspector’s name, credentials, and contact information.
• VIN, mileage, and vehicle specifications.
• Detailed photo documentation of damage areas and repaired areas.
• Repair invoices and parts details.
• Market comparable vehicles (same year/make/model/trim) and price adjustments for condition, mileage, and regional market.
• Calculated diminished value amount and explanation of methodology.

How long it takes and typical cost

Timeline:

• Appointment and inspection: 1–7 days (depending on appraiser availability).
• Report delivery: usually 3–10 business days after inspection.
• Insurer response: typically 2–6 weeks (can be longer if the insurer requests more information).

Cost:

• Independent diminished-value appraisal fees commonly range from about $75 to $400, depending on depth of report and region.
• Dealership estimates may be cheaper or free but are often less persuasive than a full appraiser’s report.

When to involve a lawyer

Consider attorney assistance if:

• The insurer refuses to deal in good faith or denies liability.
• The diminished value is substantial and negotiation stalls.
• You worry about preserving your legal rights or meeting civil deadlines.

An attorney can evaluate contract language, prepare demand letters, advise about Louisiana-specific law, and file suit if necessary.

Useful Louisiana resources

• Louisiana Department of Insurance (consumer resources): https://www.ldi.la.gov
• Official Louisiana Legislature site (use to search civil code and statutes): https://www.legis.la.gov/Legis/LawSearch.aspx

Helpful hints

• Get an appraisal as soon as repairs finish—market perception fades and evidence is easier to gather right after repair.
• Take clear, timestamped photos of the vehicle before repairs (if safe and possible), during repairs, and after repairs.
• Save all repair invoices, parts receipts, and communications with the shop and insurer.
• Ask the appraiser to explain their methodology so you can rebut insurer arguments if needed.
• When negotiating, request the insurer’s valuation method and comparables in writing.
• Remember that trade-in offers or dealer buy offers can sometimes be used as practical evidence of diminished value.
• If possible, obtain two independent valuations to strengthen your negotiating position.