Auto insurance what is loss of use

In this instance, they will need to take the vehicle back for those additional repairs to be made. When a person is involved in a crash resulting in a total loss of their vehicle due to the severity of the damages sustained, they will be compensated for the loss of use of their vehicle until they receive the fair market value check to compensate them for the loss of their vehicle.

The fair market value of a vehicle is often disputed and compensation for loss of use will continue through reasonable negotiations. Reasonable negotiation is an ambiguous term and thus the legal reasonable person standard is used to define it. There are many things associated with the loss of use of a vehicle that should be considered when calculating loss of use. The following are some things to consider:.

Your vehicle or one similar — you are permitted to rent a vehicle of like make and model to the one being repaired. For instance, if you were driving a van then you can rent a van or SUV but if you were driving a compact car you will not be compensated for renting a large SUV.

Sometimes, the at-fault driver will change their story following an accident from what it was at the scene in hopes of not being liable and for fear their insurance premiums will increase. This is why it is very important to document, to the best of your ability, the incident. Studies show that represented victims of accidents settle their claims quicker and for more money than unrepresented people.

The decision is always yours, so make an educated decision. Tarpon Springs, FL For example, you will want to present your insurance company with any accident report , invoices, quotes, or estimates for the repair of your vehicle, and any evidence of costs related to rental vehicles or substitute transportation. Additionally, you should file your loss of use claim in writing to ensure that you have evidence of when you submitted your claim to your insurance company, should they fail to provide loss of use coverage on time or within a reasonable timeframe.

Thus, before filing a loss of use claim with your insurance company you should gather all of the aforementioned documents, in order to ensure that your claim is processed as soon as possible. As noted above, the amount of money that you may recover from your insurance company or the responsible party from a loss of use claim depends on a variety of factors. However, typically loss of use claims are limited to a reasonable amount of money that it cost you to rent a vehicle or pay for other transportation, while you vehicle was being repaired.

Unreasonable loss of use claims are commonly denied by insurance companies. There are many reasons that an insurance company can claim to deny payment for the loss of the use of your damaged vehicle. Further, most insurance policies do not provide coverage where there is evidence that the insured was driving recklessly or with gross negligence. Other common reasons when a loss of use claim may be denied include:.

Although not a requirement, as you may be able to file a loss of use claim with your insurance company on your own, an attorney would be beneficial in helping you promptly file your claim.

Additionally, an experienced insurance law attorney or personal injury attorney is especially helpful in situations where you believe that your loss of use claim is being wrongfully denied, or if you are unsure of how to file a loss of use claim.

Jose Rivera. Law Library Disclaimer. Can't find your category? Click here. Choose a Legal Category: Family Law. Real Estate and Property Law. Criminal Law. Personal Injury. Defective Products. In other states—including Colorado and Texas—there are legal precedents upholding the rights of the rental car companies to charge them.

Most major insurers cover rental car collision damage but not Loss of Use. Call your insurance company and double check rather than assuming you are covered.

Do you have a Visa card? Consider using it for rentals cars, thanks to its CDW that includes Loss of Use Not that this is secondary coverage, so it kicks in after your auto insurance deductible is met. If you have a card with primary coverage, use that one to book your rental cars. One caveat: Even if your credit card covers Loss of Use, the resolution process can be long and drawn out. Problematically, rental companies often refuse to provide these logs, as they deem them confidential.

So the rental car company and your credit card company can get mired in a blame game, leaving you the hook for the bill. The bottom line is that some credit card policies have your back and others do not.

Know which kind of card is in your wallet and choose accordingly. Username or Email Address.