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What Is A Loss Of Use Claim?
If you have been in a car accident, you may need a rental car to help get around while your vehicle is being repaired. Who should pay for that? Can you receive compensation for the loss of the use of your car?
The answer is that you can receive compensation for losing the use of your vehicle, and it most often occurs in the form of rental-car coverage from an auto insurance company.
If the accident was your own fault, you can use your own auto insurance to pay for a rental car, so long as you have coverage. If you were not at fault for the accident, the at-fault party’s insurance company should pay for your rental car. Insurance companies usually cover about $25 dollars a day to rent a compact sedan.
For some reason, if the at-fault party’s insurance company does not or cannot cover the expense needed to get use a replacement vehicle until your vehicle can be repaired or replaced, you may have a loss of use of vehicle claim. You can ask the at-fault party and their insurance company to reimburse you for rental expenses or public transportation expenses incurred because you could not use your own vehicle.
A loss of use claim must be made in conjunction with your other claims regarding the accident. You cannot ask for more money after you have received a settlement.
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