If your vehicle was damaged in an accident, you’re likely facing the inconvenience of driving a rental car that doesn’t match your regular vehicle. This inconvenience is known as Loss of Use, and you could be eligible for compensation.
In this article, you’ll discover what Loss of Use means, learn when you can claim it, see how to calculate your compensation easily, and get practical advice for maximizing your claim. By the end, you’ll confidently understand how to ensure you receive fair compensation.
Calculate Your Loss of Use Right Now
Use our easy-to-use Loss of Use Calculator to see instantly how much compensation you might be owed. Simply enter details about your damaged vehicle and the provided rental car.
What Exactly Is a Loss of Use Calculator?
Loss of Use refers to the inconvenience and potential financial loss you experience when your primary vehicle is damaged in an accident and temporarily unavailable. Essentially, it covers the difference between the daily value of your original vehicle and the inferior rental provided by the insurance company, compensating you for any reduction in value, comfort, or functionality during the repair or settlement period.
A Loss of Use Calculator specifically helps you quantify this compensation by calculating the difference in daily rental value between your original vehicle and the provided rental.
Example:
- Damaged Vehicle: 2013 Volvo XC60, premium package (MSRP: $43,000)
Daily Rental Value: $75/day - Rental Provided: 2013 Ford Escape, cloth seats (MSRP: $24,000)
Daily Rental Value: $30/day - Rental Duration: 20 days
Calculation:
($75 – $30) x 20 days = $900
This means you can claim $900 from the insurance company.
When Can You Claim Loss of Use?
You can claim Loss of Use compensation if the rental car provided does not match your damaged vehicle in terms of value, features, or class. Typical reasons include:
- Lower quality rental
- Missing essential features
- Impact on your comfort or lifestyle
There are two types of insurance claims:
First-Party Claims
Claims filed against your insurance policy when you’re at fault, or in cases such as hit-and-run or comprehensive damages (hail, theft, deer collisions). Typically, policies include rental reimbursement with defined limits, like $30/day for 30 days, totaling $900. Rental coverage generally ends once the vehicle is repaired, replaced, or settled as a total loss.
Third-Party Claims
Claims filed against another driver’s insurance (the at-fault party). Compensation is based on tort law, aiming to fully recover the actual loss, including property damage, bodily injury, diminished value, and Loss of Use. You’re entitled to a rental comparable to your damaged vehicle, and if that’s unavailable, you’re eligible for Loss of Use compensation.
Conclusion
Accidents are stressful enough without adding unnecessary inconvenience and financial strain. Don’t let insurance companies minimize your rightful compensation. Use our Loss of Use Calculator, understand your rights, and take proactive steps to secure the compensation you’re entitled to. Act now—make sure you’re fully compensated for your Loss of Use today.
