10.7 Auto Claims Adjusting in Louisiana: Investigation, Repairs, Total Losses, Salvage Titles & Loss of Use
Key Takeaways
- Under R.S. 32:702, a total loss is a motor vehicle with damages equal to 75 percent or more of its market value, with an exception for cosmetic hail damage.
- When an insurance settlement declares a vehicle a total loss, the insurer, its agent or the owner must send the endorsed title and a salvage title application to the Office of Motor Vehicles within 30 days (R.S. 32:707(I)).
- For a first-party ACV total loss, R.S. 22:1892(B)(5) allows valuation by a local dealer survey, a recognized industry database or guide with documentation, or an agreed qualified appraiser.
- An insurer must appraise a damaged personal vehicle held in a storage facility within 10 working days of notice of its location, or 20 working days after a catastrophe (R.S. 22:1297).
- Louisiana insurers may not require repairs, including glass, at a particular shop, and must disclose that a recommended network is optional (R.S. 22:1892(D)).
Last updated: September 2026
First-Party Versus Third-Party Auto Claims
| Feature | First-party (collision, other than collision, UM) | Third-party (liability BI and PD) |
|---|---|---|
| Relationship | Contract between insurer and insured | Claimant is a stranger to the contract; the insurer defends and indemnifies its insured |
| Standard | Policy terms plus the insurer's good-faith duty and payment deadlines in R.S. 22:1892 | Louisiana tort law: fault under Civil Code art. 2315, comparative fault under art. 2323 (51 percent bar since January 1, 2026), and the No Pay No Play limits in R.S. 32:866 |
| Measure | Lesser of ACV or cost to repair with like kind and quality, minus the deductible | Damages the insured is legally obligated to pay, up to policy limits |
| Deadlines | Initiate adjustment within 14 days of notice; pay within 30 days of satisfactory proof of loss | Pay property damage and medical expenses within 30 days after a written settlement agreement |
Accident Investigation
- Scene evidence: roadway layout and sight lines, traffic controls, skid marks (locked-wheel braking), yaw marks (sideways sliding while steering), gouge marks locating the point of impact, and debris fields.
- Vehicle evidence: matching damage heights, paint transfer and crush profiles. Mismatched damage suggests a staged or unrelated loss.
- Electronic evidence: many vehicles store pre-crash data in an event data recorder in the airbag control module, such as speed, braking, throttle, steering input, seatbelt status and change in velocity. Download it with appropriate authorization and tools.
- Reports and statements: the Louisiana crash report (diagram, citations, conditions), plus prompt recorded statements from drivers and witnesses. Under the adjuster standards of conduct, a witness who gives a recorded statement gets a copy on request (R.S. 22:1674.1(A)(15)).
- Coverage checks: listed vehicle or newly acquired auto, permissive use, named excluded drivers (R.S. 22:1295.1), UM selections, and whether the claimant carried compulsory security (R.S. 32:866).
Estimating Repairs
- Vehicle construction: body-on-frame vehicles (many pickups and large SUVs) bolt the body to a separate frame; frame damage includes sway, sag, mash and twist. Unibody vehicles integrate structure and body, and repairs require measuring systems and frame benches.
- Parts types: OEM parts come from the vehicle manufacturer. Recycled or like kind and quality (LKQ) parts are used original parts from salvage vehicles. Aftermarket parts are made by independent manufacturers, often certified by programs such as CAPA. Estimates should identify part types, and the policy's parts provisions control.
- Supplements: teardown often reveals hidden damage; document the supplement and re-check total loss status.
- Airbags: an insurer may count the cost to repair or replace used or damaged airbags toward a total loss determination only if the policyholder agrees in writing, and it need not pay more than ACV including the airbags (R.S. 22:1293).
Louisiana Total Loss Definitions and Titles
| Term | Louisiana rule |
|---|---|
| Total loss | A motor vehicle that has sustained damages equal to 75 percent or more of its market value, as determined by the most current NADA handbook named in R.S. 32:702 (OMV policy references the current J.D. Power guide) |
| Hail exception | A vehicle with cosmetic hail damage of 75 percent or more of market value, such as glass, paint and dents, is not deemed a total loss and salvaged; it receives a branded title showing hail damage |
| Salvage title | A certificate evidencing that an insurance settlement declared the vehicle a total loss |
| Title deadline | When an insurance settlement declares a vehicle a total loss, the insurer, its authorized agent or the owner must, within 30 days of settling the property damage claim, send the properly endorsed title to the Office of Motor Vehicles with a salvage title application (R.S. 32:707(I)(1)(a)) |
| Certificate of destruction | A title for a water-damaged vehicle (other than antiques or vehicles over 20,000 pounds GVWR) whose power train, computer or electrical system was damaged by flooding from a gubernatorially declared disaster or emergency, and that is a total loss. OMV policy states it cannot receive a salvage or reconstructed title, cannot be registered for road use, and may only be dismantled, sold for parts or crushed. |
| Other water damage | A vehicle whose power train, computer or electrical system was water damaged but does not qualify for salvage or a certificate of destruction receives a branded water-damage title (R.S. 32:707(O)) |
The 75 percent definition controls titling and salvage consequences once a settlement declares a total loss. Whether the insurer pays a total loss is decided under the policy's loss settlement terms: the lesser of ACV or repair cost.
Valuing a First-Party Total Loss (R.S. 22:1892(B)(5))
When a policy settles first-party total losses on ACV or replacement with like kind and quality, and the insurer chooses a cash settlement based on the cost of a comparable vehicle, the cost must be derived by one of these methods:
- Dealer survey: a fair market value survey of qualified retail dealers in the local market area, or the nearest reasonable market if there are no local dealers.
- Industry source: the retail cost from a generally recognized used-vehicle industry source, such as an electronic database whose valuation documents are given to the first-party claimant, or a publicly available guidebook. If the insured presents two independent appraisals, based on measurable factors including pre-loss condition, showing a higher local value, the local market value is used.
- Agreed appraiser: a qualified expert appraiser the insured and insurer select and agree on, who produces a written nonbinding appraisal of pre-loss ACV.
The local market area means a reasonable distance around where the vehicle is principally garaged or usually located.
Owner-Retained Salvage
If the owner keeps the total-loss vehicle, the settlement is usually reduced by the vehicle's salvage value, and the salvage title obligations still apply.
Storage, Rentals and Loss of Use
| Situation | Rule |
|---|---|
| Damaged personal vehicle in a storage facility | Appraise within 10 working days of notice of its location and availability, or 20 working days after a natural disaster, catastrophe or unusual circumstances. Penalty: the greater of 10 percent of the vehicle's appraised value or $1,000, plus appraisal and attorney fees (R.S. 22:1297). |
| Third-party claimant loses use of a personal vehicle for more than five business days because the insurer did not act | Pay reasonable alternative transportation for the whole period, to the extent legally responsible. Arbitrary failure to pay within 30 days of written proof and demand adds up to the greater of 10 percent of the expenses or $2,500, plus attorney fees (R.S. 22:1892(B)(4)(a)). |
| First-party insured entitled to rental coverage | Provide the rental within three business days of the insured's written request. Arbitrary failure adds up to the greater of 50 percent of the expenses or $2,500; this does not apply to an investigation under a reservation of rights (R.S. 22:1892(B)(4)(b)). |
Repair-Shop Choice (R.S. 22:1892(D))
- No insurer may require repairs, including window glass, at a particular place, shop or entity.
- An insurer may not recommend a repair service or network without telling the insured or claimant there is no obligation to use it.
- No intimidation, coercion or threats to use a specified shop.
- The commissioner may fine $1,000 for a first offense, $2,500 for a second within 12 months, and $5,000 for a third or later offense within 12 months.
Diminished Value
A standard Personal Auto Policy pays repair cost or ACV, and many forms expressly exclude diminution in value. In a third-party tort claim, a claimant may seek proven loss in market value as part of damages under Louisiana tort law. The claimant bears the burden of proving it with competent evidence, such as appraisals or market data.
Loading diagram...
Test Your Knowledge
How does R.S. 32:702 define a total loss motor vehicle for Louisiana title purposes?
A
B
C
D
Test Your Knowledge
An insurer settles a first-party total loss in cash based on the cost to buy a comparable vehicle and uses an electronic valuation database. What does R.S. 22:1892(B)(5) require for that method to be valid?
A
B
C
D
Test Your Knowledge
A claimant’s damaged car is in a tow yard in ordinary circumstances, and the liability insurer receives notice of its location and availability. By when must the insurer appraise the vehicle?
A
B
C
D
Test Your Knowledge
Which practice violates R.S. 22:1892(D)?
A
B
C
D
Congratulations!
You've completed this section
Continue exploring other exams