Being in a car accident can be a frustrating experience that you would rather avoid having to go through the hassle of getting your car fixed if at all possible. While your car is in the shop, you have the right to request a rental car. You will need to go through your insurance company to receive a rental free of charge while your car is in the shop. Remember, if the insurance company agrees to fix your car after an accident and you decide to go that route, you can go to any repair shop you would like as long as they are licensed to repair cars. The shop will make an estimate that you must present to the insurance company that is covering the repair in order to ensure the whole bill will be paid. In some cases, there will be more damage discovered during the repair process and the repair shop will have to request a supplement from the insurance to complete the repairs.
Loss of use of your car is an inconvenience above all. If you have kids that need to be dropped off at school and are left without a vehicle, or you need to run errands, this is where a rental can come into play for you. The insurance should not charge you for a rental since you are having your car repaired on their watch. Most people do not have an extra vehicle available to use while their car is in the shop. Unfortunately, you cannot have both a rental car and request loss of use payments during the time without your car. You have to decide if the rental is more important or the compensation for loss of use. The payments you would receive from loss of use are going to be about the same as the cost of a rental car for the time you need it.
Loss of use damages can be requested from the date of the car accident to the date you get your car back from the repair shop. If your car is considered a total loss, you will instead receive a check for the value of the vehicle. If you have a specialized vehicle, the rate for loss of use will be more than for a typical car. It will help your case if you contacted the insurance right away after the accident to setup repairs and if you went in to get an estimate right away for your insurance company.
You will need to check your insurance policy to determine if you have loss of use coverage. It is highly recommended that you opt into this coverage if you do not have it already. You do not want to foot the bill for a rental car, which can be very expensive in the case of your car being in the shop for weeks or even months. If you are determined to have loss of use coverage, you may have to switch insurance companies. Many insurance carriers do not have loss of use coverage as part of a policy. This is likely because the insurance company would take a huge loss paying out rental car bills due to the number of car accidents that occur. If it is available through your insurance company you have an extra level of protection against huge bills that others who get in a car accident don’t have the luxury of.
Many times, vehicles are repaired and not totaled after a wreck because the value of the vehicle is much higher than the repairs. But this is not always the case. Even if loss of use coverage is available from your insurance company, it is not automatically added to your liability insurance policy. You need to be pro-active about finding out the easiest way to sign up for it.
It is not recommended, but you can contact your insurance company after an accident and request a loss of use claim even if you did not have it on your policy ahead of time. Typically, the amount that can be claimed per day on your insurance for loss of use is between $25 and $50.
Be aware of the type of vehicle you choose rent and ask your insurance carrier the necessary questions on what type of vehicle may be covered. It may only be a vehicle that is of the same class as the one you own that will be covered. You do not want to later have your claim denied due to a mistake in renting outside your coverage limits.
We are happy to answer your questions pertaining to loss of use coverage as you look to get back on the road with your vehicle after repairs have been made. If you want to make sure your insurance does not try to take advantage of you, the attorneys we work with can work on your case and help you get the best outcome.