If you’ve been in a car accident, you’ll need to account for more than just repair costs. Loss of use car insurance fills in the transportation gap while you wait for your car to be repaired, providing stability and financial compensation via the use of a rental car or other comparable solution.
So what is loss of use for car insurance purposes, and how does it work? Here are the details you need to know about loss of use coverage, including who pays for it and why it’s a must for rare, luxury, and exotic supercars.
What is Loss of Use Coverage after an Auto Accident?
Loss of use coverage is compensation provided by insurance when your auto vehicle is undrivable due to an accident. It can be used to pay for transportation costs such as a rental car, rideshares, or taxis, with coverage kicking in as soon as your car enters the repair shop or you receive a payout for total loss.
The purpose of loss of use car insurance is two-fold:
- Compensate you for financial losses due to owning a vehicle you cannot use.
- Ensure you have sufficient alternate transportation until your car is drivable again.
How Loss of Use Coverage Works
After an accident, you could be eligible for rental car reimbursement or a daily cash transportation allowance if your policy or the at-fault driver’s insurance includes loss of use coverage. This coverage starts right when you drop off your vehicle for repairs and typically covers leased cars in addition to owned cars.
If you were not at fault: Contact insurance immediately after the accident and again when you drop your vehicle off for repairs. In most cases, you’ll be given a per diem maximum to apply to a rental car or other transportation, with coverage ending once you’re back in your own vehicle.
If you were at fault: If you live in a no-fault or comparative-fault state, you could be eligible for loss of use even if you were responsible for the accident. Talk to your insurance company to see if your policy covers loss of use and if you qualify.
Notable coverage factors to be aware of as you file a loss of use claim include rental reimbursement vs. cash allowance (some policies cover your rental expenses outright; others offer a daily stipend) and policy limits and timeframes (many standard policies only cover loss of use for up to 30 days).
Rare and exotic vehicles often require longer repair times, making specialized loss-of-use coverage a must.
Who Pays for Loss of Use?
There are a number of ways that loss of use can be paid for:
- Your own insurance policy: If you have loss of use/rental reimbursement coverage.
- The at-fault driver’s insurance: If another driver caused the accident, their liability insurance may cover your loss of use expenses.
- Out-of-pocket costs: If neither of the above options applies, you may have to pay out-of-pocket unless you pursue legal action.
No matter who’s footing the bill, make sure you know how much you’re allotted per day. You may be limited to $50/day or less for a rental car, and you don’t want to end up spending more out-of-pocket than you have to.
Why Loss of Use Coverage is Essential for Luxury and Exotic Vehicles
We specialize in helping luxury and exotic car owners navigate the tricky process of reimbursement after an accident. What makes it so complicated? There are several unique challenges that supercar owners face, especially when it comes to loss of use claims. This includes:
- High rental costs: Renting a comparable replacement (e.g., Ferrari, Bentley) costs significantly more than a standard rental car.
- Longer repair times: Exotic cars require specialized repairs, meaning you need coverage for an extended loss of use period.
- Insurance disputes: Some insurers try to limit loss of use payouts for high-end vehicles, but you deserve fair compensation.
Our team can ensure you receive the full rental reimbursement or equivalent compensation you’re entitled to. Get help maximizing your loss of use compensation for a luxury vehicle, and don’t let insurance disputes or outright claim denials keep you from getting proper reimbursement for your financial losses.
Maximize Your Loss of Use Payout
SuperCarClaims.com has the experience and resources you need to maximize your loss of use claim. Contact us for qualified legal support regarding insurance claims on rare, exotic, collectible, and other luxury vehicles, and make sure you have reliable – and comparable – transportation until you can get back behind the wheel of your supercar.
