Fair value of loss of use

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Latest post Mon, Apr 3 2017 11:57 AM by ca19lawyer2. 7 replies.
  • Sat, Apr 1 2017 2:42 PM

    • vvaldellon
      Consumer
    • Not Ranked
    • Joined on Sat, Apr 1 2017
    • CA
    • Posts 2

    Fair value of loss of use

    Hello, first time here!

    Context:

    I was hit buy another vehicle and after initially trying to place the blame on me the other party finally admitted fault and  their insurance company covered my repairs. I managed to obtain another vehicle without renting.  the initial estimates for repair time was five days however several delays kept occurring because additional damages found and supplements were necessary  the total time my car ended up in the shop for was 35 days.

    Once I receive my vehicle from the shop I spoke with the insurance company again and they offered me a reimbursement rate that was significantly lower than I expected.  I have provided two independent data points to them  to give a clearer picture of where I believe my reimbursement rate should lie:  the going rental rates in the city that I work in along with a prior loss-of-use claim.

     

    Questions

    Will this stand up in court if I go to litigation? I have read posts mentioning that this is a gift however I believe this is just compensation  to make me whole for the inconvenience of not having my vehicle available to me.

     

    How do insurance companies come up with their loss-of-use figure? I am genuinely curious because it would make sense for it to be near the going rental rate for a fair comprable vehicle.

    Thanks in advance for your advice!

     

  • Sat, Apr 1 2017 3:38 PM In reply to

    Re: Fair value of loss of use

    Loss of use covers a reasonable cost to rent a similar vehicle for the amount of time reasonably necessary to repair the vehicle's damage.  You do, however, have a duty to mitigate damages.  I suspect the hang up is more over the time it took to repair where the estimate was 5 days particularly since you didn't have to be in a hurry for the repair to be complete.

  • Sat, Apr 1 2017 4:34 PM In reply to

    • vvaldellon
      Consumer
    • Not Ranked
    • Joined on Sat, Apr 1 2017
    • CA
    • Posts 2

    Re: Fair value of loss of use

    Thanks for the reply, while I wasnt in a hurry to repair I personally would have preferred it to be out of the shop sooner than later.

     

    It was because the insurance company wanted to fight every supplement and repeatedly send an inspector did it drag on, even though they yielded in the end.

     

    Each dollar in reimbursement adds up because of the total duration was in the shop which is why Im contesting their proposed amount.

  • Sat, Apr 1 2017 5:54 PM In reply to

    Re: Fair value of loss of use

    vvaldellon:
    Will this stand up in court if I go to litigation? I have read posts mentioning that this is a gift however I believe this is just compensation  to make me whole for the inconvenience of not having my vehicle available to me.

    Normally you have to incur damages (meaning shell out yourself)  in order to recover them.  If you were able to use a borrowed vehicle instead of having to rent a car, that wouldn't really count as damages YOU incurred.  Because you did put miles on that car, ITS OWNER suffered some damages in wear and tear on the vehicle you borrowed, so you can certainly argue for mileage reimbursement at some widely accepted per-mile rate such as what the IRS uses.

    You should know that I'm not a lawyer and this is just what makes sense to me.

  • Sat, Apr 1 2017 7:41 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,417

    Re: Fair value of loss of use

    Had you,actually rented a car of,like,qualiity say by the week from a name source that would easy to present 

    But if you got a " free" loaner its,goint to be hard to leverage that into damages! 

    I might try a distraction via say 3' bona rate quotes from major,firms for,like grade and quality.

    If this was not truly a gift but some sort of barter like he gets equivalent time in your hunting cabin ...you might have that in hip pocket to sidestep the "free" = no damages  point .

     

     

     

     

     



  • Sun, Apr 2 2017 1:17 AM In reply to

    Re: Fair value of loss of use

    vvaldellon:
    I have read posts mentioning that this is a gift however I believe this is just compensation  to make me whole for the inconvenience of not having my vehicle available to me.

    The compensation to make you whole for the inconvenience would be reimbursing you for the expenses incurred in renting another vehicle during that time period.  If you borrowed a car at zero expense then how exactly were you inconvenienced or suffered financial damages?  

    vvaldellon:
    How do insurance companies come up with their loss-of-use figure?

    Unless this car is a taxi cab or some sort of business delivery vehicle like a commercial van then loss of use may not be compensable in your accident. If it is then you would present documentation that with that vehicle you earn X dollars per day, week, or month with that vehicle prior to the accident and how much you lost by not having it to conduct business.  The amount you lost would be compensable through loss of use.  This is something rental car companies claim when a rental car is damaged and has to undergo repairs and therefore is not available to the fleet to be earning them money as a rental.  

    If you are saying that you want loss of use simply because YOUR car was being repaired then I could see the insurance company fighting that claim since you had the use of a free loaner as a point A to point B car while yours was unavailable.

    vvaldellon:
    I am genuinely curious because it would make sense for it to be near the going rental rate for a fair comprable vehicle.

    If you actually SPENT the going rate for a comparable vehicle.  If you spent zero and used a loaner and they insurance is offering you any money towards rental expense you might want to consider taking it and walking away lest they really look into this part of the claim and deny it all together.

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • Sun, Apr 2 2017 9:03 AM In reply to

    Re: Fair value of loss of use

    vvaldellon:
    Will this stand up in court if I go to litigation?

    No.

    vvaldellon:
    I believe this is just compensation  to make me whole for the inconvenience of not having my vehicle available to me.

    You DID have a vehicle, even if it wasn't your own.

    vvaldellon:
    How do insurance companies come up with their loss-of-use figure? I am genuinely curious because it would make sense for it to be near the going rental rate for a fair comprable vehicle.

    That's irrelevant.

    Had I been the liability claim rep I would have offered you Zero since you didn't pay rent for the substitute vehicle.

    You have no leverage to get any more. In court, a judge will want evidence that you incurred an expense.

    Take what you have been offered. It IS a gift.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Mon, Apr 3 2017 11:57 AM In reply to

    Re: Fair value of loss of use

    vvaldellon:
    Once I receive my vehicle from the shop I spoke with the insurance company again and they offered me a reimbursement rate that was significantly lower than I expected.

    What do you mean by reimbursement RATE?  You wrote that the other driver's insurer paid for the repairs to your car and that you found alternate transportation without renting, so I don't understand what you would be getting reimbursed for.

     

    vvaldellon:
    Will this stand up in court if I go to litigation?

    Unless you incurred some expense for which you should be reimbursed, no.

     

    vvaldellon:
    How do insurance companies come up with their loss-of-use figure?

    They don't.  If you incur an expense for a rental vehicle, insurers will pay a reasonable rate for same.

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