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Rental Car Claim and Loss of Use
Learn how insurance companies get away with not paying you what you are entitled for!
A rental car claim or a loss of use claim can be made when your vehicle or property is disabled and will take time to get fixed (more than a day).
The concept is simple. However, insurance companies do different things to set out of paying.
To make a successful rental car claim, you must show that there was some actual “loss of use.”
If you have extra vehicles to drive around, the insurance company can argue that there is no actual loss of use. The car could have been parked the entire time.
This defense is very problematic. If you have two vehicles, say a week and a weekend car, and you are hit on your weekend car; do they have to pay you for the cost of a rental car during the weekdays? Some insurance adjusters will tell you “no.”
They will only pay for weekend days because these were the days you lost driving this specific vehicle. Some people believe that if you hit them, you need to provide a rental car regardless of the “victim’s condition or economic circumstances.”
Set aside what people believe. Let’s talk about what the insurance company can and cannot do legally when dealing with your rental car claim and loss of use issues.
There are two ways you can make a rental car claim against YOUR OWN INSURANCE COMPANY.
You can always make this claim if you carry rental coverage. This claim can be made at any time regardless whether you are at fault or not.
The other way to make a rental car claim against your own insurance company is if an uninsured motorist hits you and you carry UMPD coverage.
In the first case, you will be subject to the limits stated in the policy. This limit is something like $40 up to 30 days, or $40 up to $1,200. The important thing to remember is that this is a double limit, meaning that both limits apply at the same time.
If your rental is more than $40, say $42, your adjuster will deduct the $2 and only pay $40.
It does not matter that you are under $1200. The daily limit will apply to the entire amount of the rental, so if taxes or insurance apply, they must be under the daily limit or you will be responsible for those.
The rental car claim under the UMPD will be treated in the same as if you were making a claim against the insurance company of the person that hit you.
However, to make an Uninsured Motorist Rental Claim, you must show that the person without insurance was at fault (just like if you were claiming against someone else’s insurance).
Once you can establish this, you will be entitled to a rental car.
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