A loss of use auto insurance claim provides reimbursement for a rental vehicle following an accident. Most policies include this important coverage, along with collision and comprehensive plans. The idea is to temporarily help you maintain your standard of living while your vehicle is being repaired. Since you’re paying to insure an asset you can no longer use, the idea is that the insurance company legally owes you a per diem amount toward reasonable substitute transportation.
Please note: Douglas & London only accepts cases in New York, New Jersey, and Connecticut. We cannot accept cases outside of those areas.
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Does every insurance policy
include loss of use coverage?
Loss of use coverage is not included in basic liability policies, but as noted above, it is typically included with collision and comprehensive policies. Typically, loss of use coverage only costs a few extra dollars a month, making it a worthwhile addition to a car insurance policy, particularly for people who rely on their vehicles for daily commuting. If you’re unclear on what your individual policy does or doesn’t cover, our New York City personal injury lawyers can help explain it to you during a free consultation.
What is included with loss of
use coverage?
Your insurer allows you a
limited per diem (usually up to $50/day) to put toward a rental vehicle. Make
sure you know how much you are allowed before renting. Insurance companies expect
you to select a comparable model to the one you already own and insure. In
other words, it’s not time to test drive that luxury sports car you’ve always
wanted— unless you don’t mind your claim being denied!
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Can I claim loss of use even
without renting another vehicle?
Perhaps you prefer borrowing
a car from a friend, spouse, or another family member, or even using public
transportation— rather than dealing with the rental car agency. You may still
be able to obtain compensation by multiplying the per diem by the number of
days it will take to repair your vehicle. In other cases, you may file a claim
based on the “measure of damage” you placed on the vehicle you borrowed based
on IRS estimates for the mileage you put on.
What if I was at-fault for
the accident?
Some insurers will deny
coverage if you were at-fault for the accident. However, in a “no-fault” state
like New York, however, it is common to receive coverage, regardless of who was
to blame for causing the crash.
When can I claim loss of use?
Most people ask the insurance
company about loss of use coverage right after they drop their vehicles off at
the repair shop. It doesn’t matter whether you own the vehicle outright, lease
it, or have financed it with a loan. As long as the damage was substantial
enough to involve repairs, you can make a loss of use claim.
What if my vehicle was declared
a total loss?
Some insurers may not offer
loss of use coverage if your vehicle was totaled; however, they are more likely
to cut you a check for the value of the lost vehicle. If it takes an unusually
long time to render a decision on how much to offer for a settlement, you may
be offered loss of use compensation during this time.
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What do I need to claim loss
of use?
Having the right documents in
order is important for ensuring a smooth loss of use claims process. You will
need to present your insurance company with an accident report, photos of the
damaged vehicle, and estimates for the repair work. If your car is in the
repair shop for more than 30 days, you may be required to submit additional
proof of damage.
Why might auto insurers deny
loss of use coverage?
You may encounter several
objections to your loss of use coverage:
- The insurer doesn’t believe
the damage to your vehicle was as extensive as you allege. - The insurer doesn’t feel you
need your vehicle daily to conduct your ordinary affairs. - The insurer doesn’t think you
are making any reasonable effort to get your vehicle promptly repaired.
Do you need a lawyer? Contact us at Douglas & London
The days that follow a motor vehicle accident can be difficult. Although it is not a requirement, working with a New York City car accident lawyers from Douglas & London can help you better understand your insurance policy, negotiate loss of use coverage, and file your paperwork promptly. If your claim has been denied, a personal injury attorney can help advocate for your rights.
