Insurance Loss of Use Claim

Say someone hits your weekend/pleasure car and it's their fault 100%. The car goes into the shop for repair for a given amount of time. How would you typically calculate the loss of use? Since it's a pleasure car and you don't need a loaner could you ask for money equal to what it would have cost to rent the same/similar car for a given timeframe?

I.E. say it was in the shop for 10 days and it's $300 a day to rent it, could you ask for $3,000? Just curious if there's an industry standard for this kind of thing.

I'd be more worried about diminished value since it now how a dinged up carfax showing it was in an accident.

http://assets0.ordienetworks.com/tmb...ullsize_21.jpg

Also getting diminished value as well, have a plan for that one. Need advise on loss of use.

So what happened?

BTDT, they will offer you the amount of what they would have paid for a rental, ie: Enterprise. $25 a day or somewhere around that is what they paid me, although I never said it was a weekend/pleasure vehicle.

I wouldn't expect $300 a day.....they can put you in transportation a lot cheaper than that. If you have already turned down a rental from them because you have other vehicles to drive don't expect any loss of use payment.

They key word is "comparable" transportation. If I understand correctly they have to put you in a car comparable to what you were driving. If someone hit your 2012 Mercedes S65 AMG I don't think you have to accept a Ford Fiesta as a substitute.

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Originally Posted by cam76034

BTDT, they will offer you the amount of what they would have paid for a rental, ie: Enterprise. $25 a day or somewhere around that is what they paid me, although I never said it was a weekend/pleasure vehicle.

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Guessing it was a Miata?

I think you're going to want legal representation on this if you plan to go for anything close to your $300/day target. There is a reasonable argument that a new Ford Taurus is an acceptable substitute for a C63, since it can perform all of the same tasks as the Merc. Just because it can do 160 mph doesn't mean they have to give another car that fast. Prestige/performance/value arent' likely to be considerations in a legal sense.

You might try to appeal to them with a compromise: $50/day rental cost for the 21 days (guess) the vehicle was out of your posession, ignoring the "weekend" tag. That is much better for them than the 10 days @$300/day for an Elise rental, but still gets you $1K for your "inconveniece" that isn't really an inconvenience for you anyway.

If you really want every last $$, better hire an insurance attorney, but you'll spend a lot of the benefit doing so.

Maybe I'm just old fashioned, but since you're aleady having the vehicle repaired at your choice of shop and presumably getting a diminished value settlement as well, it seems a little predatory to be asking for "loss of use" (especially at $300/day) on a car you hardly drive.

Joe photographed at the office earlier today:

http://images.inmagine.com/img/image.../is098r9a7.jpg

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Originally Posted by altiain

Maybe I'm just old fashioned, but since you're aleady having the vehicle repaired at your choice of shop and presumably getting a diminished value settlement as well, it seems a little predatory to be asking for "loss of use" (especially at $300/day) on a car you hardly drive.

Joe photographed at the office earlier today:

http://images.inmagine.com/img/image.../is098r9a7.jpg

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My vehicle would not have needed repairs had the insured not run into me. Diminished value is a intrinsic loss of value and a hit I will take later on selling the car. If they didn't want me to ask for $ they shouldn't have run into me. I still had to pay car payments, insurance etc while it was down and I couldn't drive it. I missed driving it in several events and I pay good money to be able to drive it when I want. They certainly aren't doing me any favors by righting a situation they created and are liable to fix.

Perhaps I should ask this on 6speedonline to a crowd with some higher end cars. I guess if they had to pay a $3,000 loss of use or diminished value on a 10 year old Miata it would be totalled even before the repairs started. ;)

P.S. you sure did seem eager to go after the insurance company for extra $ when some clown smashed your CRV even though it was fixed a few years ago. I guess you weren't so old fashioned when it was your property and $ involved. ::PotKettl

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Originally Posted by CosmosMpower

P.S. you sure did seem eager to go after the insurance company for extra $ when some clown smashed your CRV even though it was fixed a few years ago. I guess you weren't so old fashioned when it was your property and $ involved. ::PotKettl

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Umm... apples to oranges, my short-fused friend.

Just so that we're both on the same page - when my CR-V was hit, I did indeed pursue a diminished value claim. If you'll look back at what I typed, I'm not faulting you for that. You're both legally and morally entitled to be compensated for that intrinsic loss of value, since it will be lost value if/when you sell the car.

What I'm questioning is your desire to go after a "loss of use" payment for a vehicle you hardly use, that spends 95% of it's life cocooned in your garage propping up your golf clubs. The fact that you think $300/day is a reasonable figure seems laughable, greedy, and slightly morally bankrupt to me, but to each his own.

More power to you, Jo-Jo. Take 'em for every cent you can squeeze out of them for the tragedy that you've suffered.

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Originally Posted by altiain

Umm... apples to oranges, my short-fused friend.

Just so that we're both on the same page - when my CR-V was hit, I did indeed pursue a diminished value claim. If you'll look back at what I typed, I'm not faulting you for that. You're both legally and morally entitled to be compensated for that intrinsic loss of value, since it will be lost value if/when you sell the car.

What I'm questioning is your desire to go after a "loss of use" payment for a vehicle you hardly use, that spends 95% of it's life cocooned in your garage propping up your golf clubs. The fact that you think $300/day is a reasonable figure seems laughable, greedy, and slightly morally bankrupt to me, but to each his own.

More power to you, Jo-Jo. Take 'em for every cent you can squeeze out of them for the tragedy that you've suffered.

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My golf clubs live in the trunk of my BMW :) Sorry I can have a fun sports car that I don't HAVE to drive everywhere all the time. Too bad my bank and insurance company don't let me just pay on it when I feel like using it. I should definitely be penalized and just eat the intrinsic cost of payments/insurance/nearly 2 months of wasted inspection/registration when I couldn't drive it. You're 100% right. Let me adjust my "moral compass" and write the bank and insurance company an IOU for that time period, I'm sure they'll understand.

BTW I wasn't even asking for $300.00 a day just using round numbers as an example of the rental X days model.

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Originally Posted by CosmosMpower

My golf clubs live in the trunk of my BMW :) Sorry I can have a fun sports car that I don't HAVE to drive everywhere all the time. Too bad my bank and insurance company don't let me just pay on it when I feel like using it.

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You choose to make multiple car payments every month. Good for you. I choose to drive one car I paid cash for. We all make choices.

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Originally Posted by CosmosMpower

I should definitely be penalized and just eat the intrinsic cost of payments/insurance/nearly 2 months of wasted inspection/registration when I couldn't drive it. You're 100% right. Let me adjust my "moral compass" and write the bank and insurance company an IOU for that time period, I'm sure they'll understand.

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You mean like the IOU you signed with the bank when they let you drive their car?

If you’re still making payments on the car, it isn’t yours. It’s the bank’s. The bank is just being kind enough to let you use it until you finish paying for it. The interest you pay every month is the fee you pay for that privilege.

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Originally Posted by CosmosMpower

BTW I wasn't even asking for $300.00 a day just using round numbers as an example of the rental X days model.

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Of course. Everyone has to have a starting point when entering a negotiation.

I think this comes down to the definition of "reasonable" when considering compensation and reimbursement. As I already mentioned, if you really want to pursue the level of loss-of-use compensation you are deeming reasonable, be prepared to pay for representation when the insurance company refuses.

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Originally Posted by altiain

You choose to make multiple car payments every month. Good for you. I choose to drive one car I paid cash for. We all make choices.



You mean like the IOU you signed with the bank when they let you drive their car?

If you’re still making payments on the car, it isn’t yours. It’s the bank’s. The bank is just being kind enough to let you use it until you finish paying for it. The interest you pay every month is the fee you pay for that privilege.



Of course. Everyone has to have a starting point when entering a negotiation.

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Thanks for that lesson in economics, I didn't know how it worked. I guess I should pull out the cash value in my investments that are making more than than 1.9% interest I'm paying on a car loan so I can "own it" instead of the bank. That way I can feel better about the whole thing at night.

Now back to the original topic at hand, has anyone dealt with this situation before first hand?

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Originally Posted by OZMDD

I think this comes down to the definition of "reasonable" when considering compensation and reimbursement. As I already mentioned, if you really want to pursue the level of loss-of-use compensation you are deeming reasonable, be prepared to pay for representation when the insurance company refuses.

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I agree with you on this point. Most of the time insurance companies want to get out of liability for the least amount possible. I haven't decided what amount is "reasonable" yet. There's usually a balance point where the 2 parties can *eventually* reach an agreement. I'm more or less asking about experience with that process from anyone that has been through it. Not here to argue about what that exact amount is in a theoretical or real case.

JoJo....you are a perfect example of what is wrong with our justice system today.

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Originally Posted by sammm

JoJo....you are a perfect example of what is wrong with our justice system today.

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Thanks your Honor.

^Karma is a bitch. Write that down.