Why Your Loss of Use Claim is Worth More!
The insurance adjuster just offered you $20 a day for loss of use while your $100,000 vehicle sits in the shop. Have you ever felt completely shortchanged after an accident? Stop right there—don’t accept that offer. This standardized rate is like paying for a luxury watch at dollar store prices—it’s one of the insurance industry’s most profitable tactics, and it’s costing you thousands. Loss of use isn’t about some arbitrary daily rate—it’s about the actual value of your specific vehicle being unavailable. For luxury vehicles, specialty trucks, or commercial vehicles, the difference can be staggering. By the end of this video, you’ll know exactly how to calculate what your claim is truly worth.
Myth #1: You Must Rent a Car to Claim Loss of Use
Have you ever had an insurance adjuster tell you: “No rental car receipts? Sorry, no compensation for loss of use”? This common tactic leads many accident victims to either unnecessarily rent vehicles they don’t need or abandon legitimate claims worth hundreds or even thousands of dollars.
Let’s break down what the law really says. Under Nevada law, the fundamental principle is clear – compensation is about your right to use your property, not whether you actually exercised that right. The Nevada Supreme Court has consistently recognized that vehicle owners deserve compensation for being deprived of their property, regardless of whether they obtained a rental.
The landmark case Dugan v. Gotsopoulos specifically held that a vehicle owner can recover damages without showing they actually rented a substitute. The court recognized that the inability to use one’s property represents a genuine loss deserving compensation.
This creates a dilemma for many accident victims. Some people borrow vehicles from friends, use public transportation, or adjust their schedules. Others can’t afford the upfront rental costs, especially when insurers require you to pay first and get reimbursed later. None of these situations should prevent proper compensation.
The principle applies regardless of how you use your vehicle. Whether your car is for business purposes or personal enjoyment, Nevada law recognizes the intrinsic value of your property rights.
I recently helped client who didn’t rent a replacement after an accident. This client had a second car. After we cited the relevant Nevada case law, the insurer provided appropriate compensation based on the vehicle’s rental value.
Myth #2: Insurance Companies Determine What’s Reasonable Compensation
What if I told you most injury victims should receive double or triple what they actually receive, even when represented by an injury law firm? This widespread practice of standardized payouts reflects another deceptive insurance tactic that costs accident victims thousands in rightful compensation, and many law firms don’t even realize it.
When you file a loss of use claim, insurance companies typically offer the same fixed daily rate—usually somewhere between $25 and $50—regardless of your vehicle type. But legal reality does not match this oversimplified approach. It’s like paying premium prices for tailored services while only receiving generic compensation in return.
Nevada law requires compensation based on the market rental value of a comparable vehicle to yours — not the insurance company’s contracted rate with Enterprise. The distinction is significant. While an insurance company might offer you $30 daily for your loss of use, the actual rental cost for your specific vehicle could be substantially higher. For luxury vehicles, specialty cars, or high-end SUVs, daily rental rates can reach hundreds of dollars. In fact, the highest daily rental rate that I have recovered for a client was nearly one thousand dollars per day.
Courts have consistently reinforced this principle of fair compensation. Numerous judicial decisions have established that “fair and reasonable compensation” means the actual rental value of a similar vehicle—not whatever rate benefits the insurance company’s bottom line. If your vehicle has a true rental value of $250 daily but the insurer offers just $50, you’re losing $200 every day your vehicle remains unusable. This $200 daily difference adds up fast.
To protect yourself, independently document your vehicle’s actual rental value by obtaining quotes from rental companies for comparable vehicles. When challenging an insurer’s offer, present this documentation professionally while referencing Nevada legal precedent that establishes your right to compensation based on comparable rental value, not standardized rates.
Myth #3: Loss of Use Only Applies to Repairable Vehicles
Understanding your rights to fair compensation is critical, especially when facing another widespread misconception that costs accident victims dearly. Did you know that in Nevada, a vehicle declared a “total loss” can still qualify for loss of use compensation—potentially for weeks longer than insurance companies want you to believe?
When an insurance adjuster tells you that loss of use compensation only applies to vehicles being repaired, they’re deliberately misleading you. This tactic specifically targets owners of totaled vehicles who are suddenly stranded without transportation, often abandoning thousands in rightful compensation simply because they believe their claim ends once the vehicle is declared a total loss.
In reality, Nevada protects your rights even when your car is totaled. The law recognizes your entitlement to compensation during the entire period you’re without your vehicle—from accident until you reasonably secure a replacement. This timeframe extends far beyond what insurers typically acknowledge.
The actual replacement process involves evaluation, value negotiations, research for options, securing financing, and purchasing a suitable vehicle—often taking days or weeks while you struggle with disrupted work commutes and daily routines. All of this warrants compensation.
Insurance companies artificially shorten this timeframe, offering compensation for just days after settling your claim, contradicting legal precedent that recognizes the “entire period of deprivation” includes reasonable replacement time.
Protect yourself by documenting your vehicle replacement journey—communications, appointments, applications, and search efforts. Create a timeline showing your diligence, noting any reasonable delays. Reference that courts consistently recognize the entire replacement process as compensable, ensuring you receive full compensation for your complete loss of use.
Myth #4 & #5: Standard Rates Apply & The Claim Period Is Limited
Those replacement delays we just covered aren’t the only aspect of loss of use claims that insurance companies misrepresent. What if I told you that a Ferrari owner and a Kia owner are legally entitled to dramatically different compensation amounts, despite what insurance companies routinely claim?
When adjusters handle your claim, they typically apply standardized daily rates regardless of your vehicle type – a fundamental contradiction of Nevada law. The law recognizes each vehicle’s unique value based on market rental rates. Luxury vehicles command rental rates of hundreds of dollars daily, while standard vehicles rent for $25-$50. This difference is like comparing a five-star hotel to a budget motel – both provide shelter, but at vastly different values. By accepting the insurer’s standard rate for your premium vehicle, you could forfeit thousands in rightful compensation.
Insurers also artificially shorten your compensation period. They claim that loss of use only covers physical repair time, ignoring the legally protected comprehensive timeline.
Consider this scenario: Your BMW needs a specific part from Germany. The evaluation takes three days, ordering takes two, the part arrives three weeks later, repairs take five days, and quality inspection requires one day. That’s over four weeks of compensable time – regardless of insurer claims.
For totaled vehicles, the principle extends further. The reasonable time to research options, secure financing, and find a replacement all counts toward your compensable period. Many insurers cut off compensation after issuing a settlement check, but Nevada law recognizes the replacement process requires additional time.
Protect yourself by documenting every step of your vehicle’s repair or replacement journey. These records become invaluable when challenging an insurer’s abbreviated timeline.
Conclusion
So now you have all the facts to calculate your true loss of use value – simply multiply your vehicle’s actual daily rental rate by the entire period you were deprived of it. Remember, every day counts – challenge that first offer. Industry studies confirm people who do receive up to 40% more compensation than those who immediately accept. Insurance companies count on you being uninformed or too tired to fight.
Document everything meticulously – repair timelines, rental quotes for comparable vehicles – all organized like a winning legal dossier. If you’re still facing resistance, don’t hesitate to consult with a Nevada attorney who specializes in property damage claims to ensure you receive every dollar you deserve under Nevada law.
