BMW total loss valuation › Louisiana
Louisiana total loss rules for BMW owners
Louisiana has its own rule on how an insurer values a total loss: Louisiana La. R.S. 22:1892(B)(5). Here is what it says, and what to do if the offer on your BMW looks low.
What the rules say
- Comparable vehicles. Louisiana La. R.S. 22:1892(B)(5) gives no definition of a comparable vehicle. The NAIC Unfair Property/Casualty Claims Settlement Practices Model Regulation, Section 8, which most states adopted in substance, describes a comparable automobile as one “by the same manufacturer, same or newer year, similar body style, similar options and mileage as the insured vehicle and in as good or better overall condition”; it is cited here as the model, not as Louisiana law. The model regulation values the loss at “the cost of two or more comparable automobiles in the local market area when comparable automobiles are available or were available within the last ninety (90) days to consumers in the local market area”, and otherwise “the cost of two (2) or more comparable automobiles in areas proximate to the local market area, including the closest major metropolitan areas within or without the state”.
- Adjustments. Under the model regulation, “any deductions from the cost, including deduction for salvage, must be measurable, discernible, itemized and specified as to dollar amount and shall be appropriate in amount. The basis for the settlement shall be fully explained to the first party claimant”. A settlement that deviates from the comparable-vehicle methods on account of the vehicle's condition must be supported: under the model regulation “the deviation must be supported by documentation giving particulars of the automobile condition”, with every deduction itemized in dollars.
- Dealer quotations. The rule permits "A fair market value survey conducted using qualified retail automobile dealers in the local market area as resources. If there are no dealers in the local market area, the nearest reasonable market can be used."
- How to request the insurer's valuation report. Under Louisiana La. R.S. 22:1892(B)(5) the insurer must show you the basis of its valuation on request. Ask the adjuster in writing for the complete valuation report on which the offer rests, including each comparable, its source, price, mileage and every itemized adjustment, and keep a copy of the request and the response.
- If you cannot buy a comparable. The model regulation gives a right of recourse: “if the insurer is notified within thirty-five (35) days of the receipt of the claim draft that the insured cannot purchase a comparable vehicle for the market value, the company shall reopen its claim file”, and either locate a comparable vehicle, pay the difference, or settle under the policy's appraisal provision. Check whether Louisiana provides the same period.
- The appraisal clause. Under the policy's appraisal provision, you and the insurer each appoint a competent, impartial appraiser; the appraisers then agree a value or submit their differences to an umpire. Our report can be given to the appraiser you appoint as evidence of what cars like yours sell for. If the insured presents "two independent appraisals, based on measurable and discernable factors" showing a higher local-market value than the database or guidebook, "the local market value shall be used"; the parties may also agree on a qualified expert appraiser to produce a written nonbinding appraisal (22:1892(B)(5)(b)-(c)).
- Where to complain. The Louisiana Department of Insurance takes complaints about claim handling (800-259-5300): https://www.ldi.la.gov/consumers/complaints/file-a-complaint
If the offer on your BMW looks low
- Ask for the insurer's valuation in writing. It lists the comparable cars the offer rests on and every adjustment made to them.
- Check the comparables. They should be the same generation, body, gearbox and trim as your car, at similar mileage. Enthusiast and classic BMWs are where the software most often reaches for the wrong cars.
- See what cars like yours actually sold for. The valuation tool shows recorded Bring a Trailer and Cars & Bids sales for your model, year and mileage. Free.
- Put the evidence in front of the adjuster. The Total Loss Market Valuation Report ($199) lays out comparable sales, adjustments in dollars and your state's rule, with a letter to your adjuster on the first page. The preview is free.
Questions
How is a totaled BMW valued in Louisiana?
Louisiana La. R.S. 22:1892(B)(5) gives no definition of a comparable vehicle. The NAIC Unfair Property/Casualty Claims Settlement Practices Model Regulation, Section 8, which most states adopted in substance, describes a comparable automobile as one “by the same manufacturer, same or newer year, similar body style, similar options and mileage as the insured vehicle and in as good or better overall condition”; it is cited here as the model, not as Louisiana law.
How recent and how close must the comparable cars be in Louisiana?
The NAIC model regulation, which most states adopted in substance, values the loss at “the cost of two or more comparable automobiles in the local market area when comparable automobiles are available or were available within the last ninety (90) days to consumers in the local market area”, and otherwise “the cost of two (2) or more comparable automobiles in areas proximate to the local market area, including the closest major metropolitan areas within or without the state”.
Can I get the insurer's valuation report in Louisiana?
Under Louisiana La. R.S. 22:1892(B)(5) the insurer must show you the basis of its valuation on request. Ask the adjuster in writing for the complete valuation report on which the offer rests, including each comparable, its source, price, mileage and every itemized adjustment, and keep a copy of the request and the response.
What if I cannot buy a comparable car for what the insurer paid in Louisiana?
The NAIC model regulation, which most states adopted in substance, gives a right of recourse: “if the insurer is notified within thirty-five (35) days of the receipt of the claim draft that the insured cannot purchase a comparable vehicle for the market value, the company shall reopen its claim file”, and either locate a comparable vehicle, pay the difference, or settle under the policy's appraisal provision. Check whether Louisiana provides the same period.
What if I still disagree with the insurer's offer in Louisiana?
Under the policy's appraisal provision, you and the insurer each appoint a competent, impartial appraiser; the appraisers then agree a value or submit their differences to an umpire. Our report can be given to the appraiser you appoint as evidence of what cars like yours sell for. If the insured presents "two independent appraisals, based on measurable and discernable factors" showing a higher local-market value than the database or guidebook, "the local market value shall be used"; the parties may also agree on a qualified expert appraiser to produce a written nonbinding appraisal (22:1892(B)(5)(b)-(c)).
Where do I complain about a total loss claim in Louisiana?
The Louisiana Department of Insurance takes complaints about claim handling (800-259-5300): https://www.ldi.la.gov/consumers/complaints/file-a-complaint. Before you file, ask the adjuster in writing for the complete valuation report on which the offer rests, with each comparable and every itemized adjustment, and keep a copy of the request and the response.
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Total loss rules in other states
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