How Do You Calculate Loss of Use for a Car Accident

“Loss of use” is the trouble and inconvenience of not having a vehicle after it has been in an accident.

Whenever the insurance company of the party at fault does not provide a rental vehicle for the time the damaged car is being repaired after a car accident, an individual may be able to claim “loss of use” damages or a reasonable amount required for arranging a temporary replacement vehicle. The loss of use period generally starts on the day of the accident and lasts until the day the settlement check for the damages is issued to the vehicle owner. It may be extended for a few days to allow the vehicle owner to replace the vehicle or until the vehicle is repaired.

How Much Is Loss of Use in Case of an Accident?

The value for the loss of use damage is generally determined by state law. Loss of use damage is normally collectible if the vehicle owner:

• Is involved in a vehicular accident.
• Was not at fault.
• The vehicle cannot be used for a specific period of time.
• Damages are incurred due to the accident.

It is necessary to consider specific clauses associated with the value for loss of use damages defined in the insurance policy since they may restrict the time period and amount that can be recovered.

How Much Can Be Collected?

The amount collected for loss of use damages is normally equivalent to a reasonable value required for leasing a temporary replacement vehicle while the original vehicle is being repaired. There are times when a reasonable amount can be recovered, even if a replacement vehicle is not leased.

When Loss Of Use Damage Is Denied

A loss of use claim may be denied; the circumstances for denial are determined by each state. The reasons for denial include:

• The vehicle is not used for work.
• The vehicle did not lose any value due to the accident.
• The vehicle did not undergo any repairs.
• The period for repairs was unreasonable.
• The vehicle was damaged beyond repair.
• A temporary replacement vehicle was not leased.
• The vehicle’s value before the accident was lower than the damage claimed for it.

Is a Car Accident Lawyer Necessary?

In the case of any car accident, including those involving loss of use damages, it is advisable to speak with an experienced St. Louis car accident lawyer to ensure your legal rights are protected. Insurance companies are not on your side and will be seeking ways to deny or minimize your claim to save money. Call The Hoffmann Law Firm, L.L.C. 24/7 at (314) 361-4242 for a free case evaluation. We can provide you with the necessary guidance to protect your legal rights.

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