Loss of use claims are confusing, and many people who have been involved in a car accident may not understand their full rights. Understanding how the process works and having an attorney assist you with your loss of use claim, can help you receive the compensation you deserve. Here’s what you need to know:
What is a “Loss of Use” Claim: Exactly?
If you’ve been involved in a car accident that was caused by the negligent actions of an individual or entity, you are entitled to file a loss of use claim to recover compensation for the loss of use of your vehicle while it is in the shop for repair.
What’s The Difference Between Loss of Transportation and Loss of Use?
When it comes to loss of use claims, many people get loss of transportation and loss of use confused. Here’s an example of both:
Loss of Transportation
When the insurance company for the person that hits you wants to give you a rental car while your shop is in repair, this is merely compensation for your loss of transportation.
Loss of Use
You, as the plaintiff, is actually entitled to the loss of use of your car while it is in the shop for repair, not just for loss of transportation. By law, the way to compute what the loss amounts to is to determine what it would cost to rent your car each day and multiply that by the days your vehicle is in the shop for repair.
What is the Insurance Companies Duty?
No law states you are entitled to a rental car through the insurance company of the person that hit you. The other person’s insurance company has no legal obligation to provide you with a rental car because you have no contract with them. This is often confused with the responsibility of your own insurance company’s duty to offer you a rental car while your vehicle is being repaired.
Do I have to Rent a Car to Be Entitled to Loss of Use?
The short answer is, “no.” You do not have to show a loss by renting a replacement car on your own volition to be entitled to a loss of use claim. Just based on the fact that you are without your vehicle while it is being repaired is the prerequisite for a loss of use claim.
Common Misconceptions about Rights in Loss of Use Claims
There are many misunderstandings about a person’s rights when it comes to loss of use claims. We shed some light here:
- You do not have to be in the country or in your state while your car is being fixed to be entitled to loss of use of your car.
- It does not matter whether you were using your car or not when it was damaged or being repaired to be entitled to a loss of use claim. Loss of use is the loss of a property right, and you can elect to use your property when you want.
While you have the right to lend your car to family or friends, or sell your car, when your property is out of your possession or control, you cannot exercise the above-listed property rights.
If you’ve been involved in a car accident caused by the negligent behavior or actions of another individual or entity, you may be entitled to recover compensation for the loss of use of your vehicle while it’s in the shop for repair. If you have questions about a loss of use claim, contact Weinstein & Scharf, P.A. today at (954) 482-4534 for a free consultation today!