When you don’t have a rental car
If your car or bicycle is damaged and you are without a rental car, the adverse insurer can pay loss of use money to you. Loss of use money in a car accident is money paid to you when your car or bike is getting fixed if you do not get a rental. You may choose to not have a car rental when your car is being repaired. In this case you can get the loss of use money.
This money can range from $30 to $60 per day. My car once was struck by an American Family driver and I received $148 for six days because they did not have use of their car.
Loss of use money is paid when you don’t go out and rent a car so if you have another car then you may get loss of use or if you borrow a friend’s car or even if you bus or bike in stead of getting a rental.
What is loss of use?
In insurance terms, loss of use simply refers to the clause in your vehicle insurance policy which allows you to receive compensation when you cannot use your car because of an accident or the car has been stolen.
Before signing up with a car insurer it is definitely worth looking to see if they offer loss of use as part of their insurance policy. Loss of use is always worth having because you never know when you are going to get into an accident or have your car vandalized or stolen.
When are you able to collect loss of use?
If you have been involved in an automobile accident involving a car or a bike then you may be eligible to apply for loss of use after the accident. However, applying for loss of use only works if you did not cause the accident. To help you discover if you should file for loss of use from your car insurer or the adverse insurer you need to ask yourself the following set of questions. If your answers are ‘yes’ then you are entitled and eligible to apply for loss of use.
1. Is the car/bike unable to function because of damage done during the accident?
2. Were you in the right during the accident?
How much can you be compensated for loss of use?
Loss of use compensation will be calculated based on the cost of the rental car you are going to rent during the time your own vehicle or bike is out of service. If you are going to rent a car that costs $120 a day then your insurance company will have to pay this amount every day for as long as your car remains in the garage getting fixed. In general most insurance companies encourage their clients to rent cars for reasonable amounts and more often a car within the same bracket as the car that is being serviced. Loss of use mostly occurs when you have a second car, can use a family car or take mass transit.
What Happens While You Wait For You Car To Get Fixed?
As you wait for your car to get fixed, you have the right to and borrow a car from a friend, instead of renting a vehicle. If you go get a rental, the car that you will be allowed to rent should be in the same category as the car you are having repaired.
What happens if you are the one in the wrong during the accident?
Everything that has been stated above applies to the situation whereby you are the victim in the accident. However if the opposite is true and you are the one who is at fault.
Want to talk to me about your case?
I want to help you get all the money you deserve for your accident, so call me at 503-280-0888 now or please fill out this short form.
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