When a vehicle is damaged in a car accident, the financial impact may extend beyond the cost of repairing the vehicle. Many people rely on their cars every day to commute to work, take children to school, attend appointments, purchase groceries, and handle other responsibilities. Being without a vehicle while it is being repaired can therefore create significant inconvenience and additional expenses.
In California, a person whose vehicle has been damaged because of another party's negligence may be able to seek loss of use damages. These damages generally address the temporary inability to use the damaged vehicle. Depending on the circumstances, a person may rent a replacement vehicle or pursue the reasonable rental value of a comparable vehicle as part of a third-party insurance claim.
Understanding Loss of Use of an Automobile?
Loss of use refers to the period during which a vehicle owner is reasonably unable to use their vehicle because it has been damaged. California law recognizes loss of use as a form of economic damage. In general, the measure may be based on the reasonable cost of renting a similar vehicle for the amount of time reasonably necessary to repair or replace the damaged vehicle. The amount and availability of loss-of-use damages depend on the individual circumstances of the accident and claim.
Can You Rent a Car After an Accident?
When another driver is responsible for the vehicle collision, the injured vehicle owner may seek reimbursement for reasonable rental expenses from the responsible party or that party's insurance company. This is generally referred to as a third-party claim. The rental vehicle should usually be reasonably comparable to the damaged vehicle. Renting a significantly more expensive or significantly different vehicle could result in a conflict over whether all of the rental expense was reasonable. It may also be important to keep the following.
- Rental agreements
- Invoices
- Receipts
- Repair estimates
- Communications with the insurance company
These can all help document the claim.
What If You Do Not Rent a Replacement Vehicle?
A vehicle owner should not automatically assume that declining to rent a car eliminates every potential loss-of-use claim. In addition, an individual should not assume that a specific amount will automatically be paid simply because the vehicle was not available.
Third-party Insurance Company: Loss of Claim
If another driver caused the collision, a loss-of-use request may be submitted as part of the property damage claim against the at-fault driver's insurer. Documentation may include, but is not limited to, the following.
- Police report or other information concerning liability
- Photographs of the damaged vehicle
- Repair estimates and repair-shop records
- Dates showing when the vehicle entered and left the repair facility
- Rental car agreements and receipts
- Information regarding the type of vehicle damaged
- Communications with the insurance adjuster
It is important for individuals to provide clear records that can help establish the period during which the vehicle was unavailable and the transportation costs associated with that time.
Loss of Use: How Long Can it Last?
For a vehicle that can be repaired, the appropriate period usually includes the amount of time reasonably necessary to complete the repairs. Delays can sometimes complicate the investigation. For example, the following may affect how long a vehicle remains unavailable.
- Parts shortages
- Repair-shop scheduling
- Supplemental damage estimates
- Insurance inspections
If the vehicle is declared a total loss, different considerations may apply regarding the reasonable period needed to replace the vehicle. Since each accident and repair process is different, there is no single number of rental days that applies to every single claim.
Understanding Rental Coverage through your Insurance
Some drivers purchase optional rental reimbursement coverage through their own vehicle insurance policies. If available, that coverage may provide another way to receive temporary transportation while a claim involving the other driver's insurer is being investigated. However, first-party rental coverage is different from a third-party loss-of-use claim. Policy limits, daily rental limits, deductibles, and other terms may affect what a person's own insurance carrier will provide. As a result, it may be important for drivers to review their policy and speak with their insurer to understand the coverage that applies to their specific situation.
Disagreements Over Rental and Loss-of-Use Claims
Insurance disputes may occur over the length of the rental period, the type of replacement vehicle, the daily rental rate, delays in repairs, or whether the vehicle could still reasonably be driven. Maintaining written documentation can be especially important when these disagreements arise. Vehicle owners may want to keep copies of the following.
- Emails
- Repair-shop updates
- Estimates
- Rental receipts
- Correspondence explaining delays
Seeking Legal Guidance and Support
Speaking to a legal professional may help individuals understand their rights and responsibilities throughout the legal process. This is important in helping victims become aware of the specific and necessary steps they may need to take moving forward.
The Legal Team at KAASS LAW
A motor vehicle accident can create transportation problems in addition to vehicle damage and other losses. KAASS LAW can review the circumstances of an automobile accident and explain how California law may apply to the resulting property damage and loss-of-use issues. Our qualified personal injury attorneys may help by reviewing insurance coverage, evaluating available documentation, and discussing potential loss-of-use or rental vehicle expenses. Call KAASS LAW today to learn more.