Anderson Injury Lawyers | December 19, 2024 | Car Accidents
“Loss of use” is a type of damage you might receive after an auto accident. Loss of use refers to the temporary or prolonged inability to use your vehicle because of a car accident. You may be entitled to compensation for the inconvenience of not being able to use your vehicle while it is being repaired. This blog discusses the loss of use for repairable and totaled vehicles and how your fault could impact a loss of use claim.
Loss of Use Claims if Your Vehicle Is Repaired
Generally, the liability insurance company for the at-fault driver handles the car accident claim. Texas requires all drivers to have a minimum amount of automobile insurance. The insurance adjuster will inspect the damage to your vehicle. If possible, the company will pay to repair the vehicle.
Loss of use refers to the period you do not have the use of your vehicle because it is being repaired. This period could last a few days or a few weeks, which can cause a major inconvenience. You may have trouble finding a way to work or taking your children to school without a vehicle.
If you need to rent a car while your vehicle is being repaired, you can include the rental fees in your claim. However, the rental fees must be reasonable. For example, renting a sports car might not be reasonable if your damaged vehicle is a minivan.
Texas courts have found that an accident victim does not need to rent a vehicle to claim loss of use while their vehicle is being repaired. They can claim damages for loss of use because of the inconvenience and other hardships, even though they do not rent a vehicle.
If you’re the at-fault driver and your insurance covers the damages, you could still claim loss of use, depending on your policy, but your own coverage would apply.
Loss of Use Claims When the Vehicle is Totaled
The insurance adjuster may determine that your car has been totaled (when the cost of repairs exceeds the value of the vehicle). Most insurance companies total a vehicle with the repair costs exceeding a certain percentage of the vehicle’s value. When a vehicle is totaled, the accident victim can recover the fair market value of the vehicle.
In J&D Towing LLC v. Am. Alternative Ins. Corp., the court ruled that an accident victim can claim loss of use under certain circumstances within the time frame that it takes to replace the damaged property. However, the period must be “reasonable” to recover loss of use.
A “reasonable” period depends on several factors. One factor may be the availability of comparable vehicles in the market. Another may be the time it takes for the person to obtain financing. Loss of use may also include the cost of renting a vehicle or using public transportation while obtaining a replacement vehicle.
Loss of Use Claims When You Caused the Car Accident
If you are at fault for causing the car accident, you might not be able to claim damages for loss of use, depending on the terms and conditions included in your insurance policy.
Loss of use and rental car coverage are not generally included in automobile insurance policies. You must purchase these additional coverages for a higher premium.
Rental car coverage pays for the cost of a rental car while your vehicle is being repaired. Most insurance policies place daily limits on the amount the company will pay for a rental car, including limits for total costs or restrictions on the time period for rental car coverage.
When you do not purchase the additional coverage, you are responsible for providing alternative transportation while your vehicle is repaired, or you can negotiate a settlement to replace a totaled vehicle. You should review your insurance policy and discuss your coverage with your insurance agent to verify your coverage and policy limits.
Get Help With a Loss of Use Claim in Texas
Loss of use claims are complicated aspects of a property damage claim. Insurance companies do not offer to pay for loss of use. You must demand compensation for this type of damage. Furthermore, the company may take advantage of your inexperience with insurance claims to avoid paying a fair amount for loss of use claims.
An experienced Dallas car accident lawyer understands loss of use claims. They can review your insurance policy and the factors of your case to determine whether you have a loss of use claim and the value of the claim.
Contact Our Car Accident Law Firm in Texas
If you’ve been injured in an accident in Fort Worth or Dallas and need legal help, contact our car accident lawyers at Anderson Injury Lawyers to schedule a free consultation. We proudly serve Tarrant County, Dallas County, and throughout Texas.
Anderson Injury Lawyers – Fort Worth Office
1310 W El Paso St, Fort Worth, TX 76102
(817) 294-1900
Anderson Injury Lawyers – Fort Worth Office (Secondary)
6618 Fossil Bluff Dr # 108, Fort Worth, TX 76137
(817) 631-4113
Anderson Injury Lawyers – Dallas Office
408 W Eighth St Suite 202, Dallas, TX 75208
(214) 327-8000
Anderson Injury Lawyers – Dallas Office (Secondary)
6301 Gaston Ave suite 610, Dallas, TX 75214
(469) 457-4711
