If your vehicle has been damaged or totaled in an accident you’re entitled to recover Loss of Use damages from the responsible driver’s insurer. Loss of Use claims are often made in conjunction with diminished value claims, but can also be pursued separately.
An owner is entitled to recover the loss of use of their vehicle from when the vehicle is wrecked until it’s repaired or settled as a total loss. Damages are determined by the reasonable cost to rent a similar vehicle for the amount of time reasonably necessary to repair or replace the vehicle.
How Much Can You Expect For ‘Loss of Use’ Damages?
Damages for Loss of Use can be significant. Most new, luxury or exotic cars, trucks or RV’s rent for hundreds of dollars a day. Repairing these vehicles take weeks and sometimes months to complete. For example, a Ferrari’s comparable rent is about $1,000 per day. If repairs took thirty days to complete the Ferrari’s Loss of Use would be $30,000.
Insurers often provide lesser quality rental cars as a substitute. Don’t be fooled; unless it’s a comparable rental vehicle, you’re still entitled to Loss of Use less a credit for whatever the insurer paid for the economy rental.
Need an Orange County Attorney to Look at a ’Loss of Use’ Damage Claim?
If you’ve been in an accident due to someone else’s negligence, and you’re worried about dealing with insurance companies undervaluing your case, contact Kerr & Sheldon, your personal injury attorneys in Orange County. We’ll work with you to recover as much of your vehicle’s Loss of Use as possible.