Loss of Use Claims in Las Vegas: What You Need to Know After a Car Accident
When your vehicle is damaged in a car accident—whether it’s being repaired or deemed a total loss—it deprives you of your ability to use your personal property. This legal right to use your vehicle is a significant aspect of ownership, and being unable to access your vehicle—regardless of the reason—can lead to various expenses. A “loss of use” claim aims to compensate you for the period in which you are deprived of using your own vehicle. You may be able to recover reasonable rental costs for a comparable vehicle during that period.
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Repairable Vehicle: If your vehicle can be repaired, your loss of use claim usually covers the time your car spends in the shop.
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Totaled Vehicle: If your vehicle is declared a total loss, your loss of use covers the period until you receive compensation and can secure another vehicle.
Types of Losses in a Property Damage Claim
- Vehicle Repair
- Right to Compensation: If your car is damaged in an accident, you may be entitled to repair cost coverage.
- Choosing a Repair Shop: Consider using an independent, reputable repair shop—not necessarily the insurer’s “preferred” facility—to avoid potential conflicts of interest.
- Supplemental Repairs: Once repairs begin, additional damage may surface. A good shop will file supplemental estimates as needed.
- Total-Loss Declaration and Replacement
- ACV Calculation: In Nevada, if repair costs exceed 65% of a vehicle’s Actual Cash Value (ACV), the car is declared a total loss. The ACV is based on factors like age, mileage, and condition.
- Settlement: The insurance company typically pays out the ACV minus any applicable deductible. Keep in mind this might not cover the full cost of purchasing a brand-new vehicle.
- Diminished Value
- What It Is: Even if a car is perfectly repaired, it is worth less than a similar vehicle with no accident history.
- Example: If your car was worth $20,000 pre-accident and is now valued at $16,000, the difference of $4,000 is the diminished value.
- Nevada Law: Nevada does not have a codified right to pursue a first-party diminished value claim, meaning you generally can’t collect against your own insurer for diminished value, especially if your policy restricts it. However, case law supports recovery against a negligent third party.
- Loss of Use
- Definition: Loss of use covers the period you’re without your car and incur costs to travel otherwise.
- When to File: It’s best to finalize this claim after repairs or once the total-loss determination is complete. This allows you to accurately quantify your expenses.
Making a Loss of Use Claim
A loss of use claim can reimburse you for the expenses you incur while your vehicle is unavailable due to an accident. Such expenses often include rental cars or rideshare services. For those who rely on their vehicles for work, loss of use may also cover resulting income losses.
What You’ll Need
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Proof of Costs: Gather rental car agreements, rideshare receipts, and other transportation-related expenses.
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Lost Income Documentation: If your vehicle is essential for work, document any lost wages or business income.
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Accurate Valuation of Comparable Rental: Calculate your total expenses, taking into account the period of time you were without your vehicle.
Negotiations and Legal Help
Dealing with insurance companies can be challenging. Working with an experienced personal injury attorney helps ensure that you present a well-documented claim and maximize your chances of receiving fair compensation.
How Much Is a Loss of Use Claim Worth?
The value of a loss of use claim hinges on the cost of renting a “comparable” vehicle to yours. Most insurance policies set a daily rental limit—for example, $25 per day. But the rate set by insurance companies only applies to YOUR insurance contract. While this can be sufficient if you drive a compact car, it might not cover the costs of renting a comparable vehicle to yours.
Fighting for a Fair Amount
Insurance companies may pressure you to accept the cheapest rental option. However, by documenting your actual losses and working with a dedicated attorney, you can push for a more accurate reimbursement. The goal is to ensure you’re compensated for a vehicle similar to yours and for any related expenses, rather than settling for an insurer’s baseline offer.
If you have further questions about loss of use claims or need help after a car accident, seek the advice of a qualified personal injury attorney. They can guide you through the process, helping protect your interests and maximize your recovery.
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Loss of Use FAQs
Who pays loss of use after a car accident?
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After a car accident, if the fault is determined, the at-fault party is responsible for paying for the losses incurred by the other party, including loss of use. Loss of use is the time when the damaged vehicle is being repaired or replaced and is unable to be used. Because the owner requires substitute transportation, the at-fault party’s insurance company will compensate the owner for their loss of use during this period.
What factors determine the value of a loss of use claim?
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Loss of use refers to the damages a plaintiff seeks for their inability to use the vehicle damaged due to an accident. When calculating loss of use, there are several factors to consider. Firstly, the market value of a comparable rental should be determined. Secondly, the insurance premium and maintenance costs incurred should be considered.
What is the typical value of a loss of use claim?
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The typical value of a Loss of Use claim in the context of a car accident depends on various factors, such as the cost of renting a similar vehicle. Insurance companies want you to think they can set the rate even when their insured is at fault. I don’t believe that this should be the case. Generally, loss of use claims are limited to a reasonable amount of money that it costs you to rent a comparable vehicle or pay for other transportation while your vehicle is being repaired. For instance, if your compact vehicle had a market value of $5,000, a reasonable substitute vehicle would be a similar compact car. Typically, your insurance policy will provide a per diem amount that you can use towards a rental vehicle, such as $50 per day. However, unreasonable loss of use claims are commonly denied by insurance companies.
How is fault determined in a Loss of Use claim?
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In a loss of use claim for a motor vehicle, fault is usually determined by the officer investigating the collision, who will gather testimony from all drivers involved, witnesses, and any available surveillance footage. If you disagree with the liability decision of the officer, you can dispute it with compelling evidence, such as additional testimony or contradictory evidence. The at-fault party’s insurance company will compensate you for your losses, including loss of use, if you were not at fault for the collision. Loss of Use claims can be filed against the at-fault party’s insurance company when you cannot drive your car after an accident because it is in the shop. The defendant’s insurance company will then rent a car for you that is comparable to the one you usually drive.
How do I negotiate a Loss of Use claim with an insurance company after a car accident?
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To negotiate a Loss of Use claim with an insurance company after a car accident, follow these steps:
- Gather all relevant documents, such as accident reports, comparable rental listings, and rental vehicle costs.
- File your claim in writing to ensure evidence of submission.
- Contact the defendant’s insurance company to find out how long your car will be in the shop and if they will rent a comparable car for you.
- If you use your car for work and cannot work due to the accident, file a loss of use claim that proves loss of income to be reimbursed by the insurance company.
Remember to remain organized and keep a record of all communication and documentation throughout the negotiation process.
What are the different types of transportation expenses covered by a loss of use claim?
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Loss of use claims after a car accident may cover the following types of expenses:
- Rental car or substitute transportation costs while your vehicle is being repaired
- Public transportation costs
- Rideshare costs; or
- Private transportation costs.
It is important to note that the amount of money that may be recovered from a loss of use claim depends on various factors, and insurance companies may deny claims that they think are unreasonable.