A Look at the Loss of Use Claims After an Auto Accident

Auto accidents in the United States are fairly common, with over a million people injured every year. It reportedly costs the government billions of dollars to deal with the damage.

The leading cause of accidents is distracted driving, and people suffer a range of injuries, from fractures to head trauma.

It’s important to hire a lawyer after an auto accident to file a compensation claim; otherwise, it could be difficult to deal with the financial aftermath.

A loss of use claim is one way to reclaim the cost of damage to your vehicle, which will be discussed in this article.

What is a Loss of Use Claim?

Loss of use refers to the inability of the owner of the car to use it due to damage after an accident. The law offers compensation for the inconvenience caused by the sudden loss of transportation, which is typically for the duration of the repairs. This cost can only be paid to the owner of the vehicle and is only for the cost of transportation while the vehicle is being repaired.

Article Overview

State Limits

There are state limits on the amount of money disbursed for this purpose. For example, the owner of the car can rent a vehicle to get around till his car is repaired but cannot ask for the cost of renting a luxury car. Instead, the daily rental limit is placed at around $50. It is also not necessary for the owner to rent a car for the amount to be refunded.

Insurance Company Rules

If you were at fault for the accident, you cannot claim this type of compensation. Loss of use falls under property damage in car accident claims and is paid out by insurance companies. However, if you have not purchased this type of coverage or if your insurance provider does not pay for this cost, you may not be able to receive compensation.

If your vehicle was completely wrecked in the accident, insurance companies typically offer compensation equivalent to the market rate for the car, including the cost of repairs.

How a Lawyer Can Help

It’s recommended to hire a lawyer when filing this type of claim, as insurance companies may deny a payout based on many factors. Lawyers can negotiate a settlement with the insurance company on your behalf in such circumstances. They will also be able to guide you on the process of filing a claim, submitting the necessary documents, and gathering the right evidence for this purpose. Hiring a lawyer also takes a ton of work off your plate and makes things easier for you by simplifying the process.

Tips for Accident Victims

Here are a few things you can do if you’ve lost or damaged your car in an accident:

Make sure you’re safe and seek immediate medical attention.
Notify local law enforcement authorities and cooperate with their investigation.
Make a note of the contact information of witnesses, if there are any present.
Record the damage to your car by taking photos or videos of the scene.
Inform your insurance company of the accident.

Conclusion

It is important for car owners to be aware of how the law works. Only then can you protect yourself against illegal actions, either from insurance companies or defendants in car accidents. A lawyer can assist you on this front, file a claim for you, and negotiate with insurance agents on your behalf.

A loss of use claim is a lifesaver for owners in an auto accident—it gives them the financial support to find alternative means of transport. States have limitations on the amount of money that can be disbursed for this purpose; however, you should look into your local legislation before filing a claim.