A serious collision can leave you without transportation even after an insurer decides that repairs are not worthwhile. Loss of use damages address that temporary deprivation. They are separate from the payment for the vehicle itself and focus on the reasonable value of substitute transportation while your vehicle is unavailable.
Understanding loss of use when your vehicle is totaled matters because a total-loss decision does not necessarily end every part of your property damage claim. Our car accident attorneys can answer any questions you have about property damage after a crash.
How a Total Loss Changes the Property Damage Measure
An insurer generally treats a vehicle as a total loss when the estimated repair cost approaches or exceeds its pre-crash value. Instead of paying the cost of repairs, the primary property-damage recovery is usually the vehicle’s fair market value immediately before the collision.
That payment addresses the loss of the totaled vehicle, while loss-of-use damages address a different harm: the period when you could not use your vehicle. California’s civil jury instructions describe loss of use as the reasonable cost of renting similar property for the time reasonably necessary to repair or replace it.
Can You Recover Loss of Use Without Renting a Vehicle?
You may still have a loss-of-use claim for a totaled vehicle even if you did not rent a replacement. The usual measure is the reasonable rental value of a comparable vehicle or the reasonable value of using another substitute. Actual rental expenses can provide useful evidence, but they are not always required.
For a totaled vehicle, the relevant period may include the reasonable time needed to receive the fair-market-value payment or obtain a replacement. Unnecessary delay can be disputed, so preserve claim correspondence and records of the insurer’s offer.
Documentation and Deadlines to Keep in Mind
Certain evidence can help support your loss-of-use claim after your vehicle is totaled in a crash. Keep receipts and records for any substitute travel, such as a rental car or rideshare trips. The at-fault driver’s liability insurer is usually the source of payment, although available coverage and disputed fault can affect the process.
Property damage rules remain separate from any bodily injury claim. California Code of Civil Procedure § 335.1 generally allows two years to file a lawsuit for injury arising from another person’s wrongful act. C.C.P. § 338 generally provides a three-year period for injury to personal property. Different facts can affect when a deadline begins.
Learn more about Loss-of-Use Claims if Your Vehicle Is Totaled
Understanding loss of use when your vehicle is totaled can help you distinguish the value of the vehicle from the value of the time you were deprived of it. Careful documentation can also make the basis of your property-damage request clearer.
Contact CaseyGerry to schedule a consultation and learn more about your options.