Monday, October 8, 2007

Car Rental or Loss of Use: Know What’s Best For You

My friend Marvin was recently involved in a car accident; unfortunately the fault was his thus, his insurance has to cover both the expenses of his car damage and the other party’s. Thankfully, he secured and is capable of maintaining an expensive insurance. Hence, the company agreed to cover the accident’s costly claims, which includes car repair and rental reimbursement or loss of use for both parties since he was at fault. This is impressive given that Marvin drives a luxury car.
The only flaw I noticed in this whole deal is the short length of time the insurance company agreed to cover rental reimbursement or loss of use. The company promised a month of insurance even if the car repair, estimated through the degree of damage the car sustained, requires at least three months of full revamping. However, Marvin’s car accident lawyer overturned said decision and was successful in its negotiation with the insurance company.
Car rental reimbursement is actually not synonymous to loss of use according to this article . Insurance companies usually cover rental car reimbursement or loss of use if the insured doesn’t rent a car within an approved duration of time.
An insured has a choice between a car rental with exactly the same model as his or a loss of use claim, which is calculated at around $20 a day. In other words, the insured cannot claim both at the same time (day).
Marvin’s lawyer demanded that his client receive loss of use expense for a longer duration of time, which is for three months, given that the insurance company was willing to reimburse an expensive car rental of a luxury car for a month. Fortunately, the insurance company agreed.
It was such a smart move! Marvin didn’t have to shell out money to rent a car for the supposed two months the auto insurance earlier refused to cover. Instead, he collected a smaller amount of money per day under the loss of use claim to extend the duration the insurance company approves to cover and rented a cheaper car for three months.
If you encounter auto accidents, it is wise to avail of legal services to help you get the best deal in all kinds of transactions.