Even a seemingly small amount of car accident damage can land a car in the shop for weeks. Make that a supercar, and you’re potentially looking at a month or more without a working vehicle.

Under the principle of loss of use, a vehicle owner may be entitled to compensation for the reasonable cost of substitute transportation during the period their vehicle is unavailable. This typically includes the cost of a comparable rental vehicle or alternative arrangements.

When pursuing a loss of use claim involving a luxury or exotic vehicle, it helps to know how to calculate the loss of use of a vehicle to ensure that any compensation you receive aligns with the actual value of the deprivation.

SuperCarClaims.com advocates on behalf of supercar owners to secure full and fair compensation for loss of use. Read on for the basics of calculating loss of use for supercars, including tips for getting what you’re owed.

Understanding Loss of Use

To qualify for loss of use, your vehicle must be inoperable, and the accident must have been fully or mostly (depending on the state) the result of someone else’s negligence.

Along with diminished value, which addresses your vehicle’s post-repair loss in value, loss of use reduces the financial toll and inconvenience of a car accident for the not-at-fault driver. It’s common in situations of necessary repairs, total loss, or claims against uninsured drivers.

How to Calculate Vehicle’s Loss of Use

The standard formula for loss of use is Daily Rental Rate x Number of Repair Days. So if a rental car costs $100 per day and you need it for 15 days, compensation should be $1,500.

Determining Daily Rental Rate

Daily rental rates are based on comparable vehicles. For luxury and exotic vehicles, you’ll want to work with a specialized rental agency to ensure access to cars similar to your damaged vehicle. If an exact match isn’t available, use the closest comparable vehicle in terms of value, features, and prestige.

Determining Reasonable Repair Time

The number of days your car will be inaccessible depends on its repair time. This number is provided in the estimate from your repair facility and should be confirmed with your insurance adjuster.

Industry-Standard Calculation Approaches

Insurance will do its own loss of use calculations. There are a few ways companies go about this, including:

Actual Cash Value (ACV) Method: Based on the vehicle’s depreciated value.
Rental Rate Method: Based on actual cost to rent equivalent vehicle
Finance-Based Method: Calculated as percentage of vehicle value (typically 0.33-0.5% per day)

Other Factors Affecting Loss of Use Calculations

There are several factors that may impact your loss of use calculation.

The first is vehicle type and value. Premium and exotic vehicles command higher daily rental rates and may have limited rental availability, justifying higher compensation. Meanwhile, custom calculation approaches may be required for modified, specialized, or collector cars.

Next is local market rental rates, with some locations seeing higher rental prices than others. For example, rental car prices are usually higher in urban areas versus rural, with further fluctuations due to seasonal availability.

Finally, you may need to consider insurance policy limitations. Many policies limit loss of use coverage to specific dollar amounts or require you rent from approved providers only. Look to policy language for details on calculation methods, coverage contingencies, and any deductibles that may apply.

Tips for Maximizing Loss of Use Compensation for Luxury Vehicles

Get Accurate Rental Rates

Contact specialty rental agencies that carry premium brands and consider dealer rental programs when available. Document availability – or lack thereof – of comparable vehicles in your market, and request written quotes from 3+ rental agencies specifying daily rate with fees and taxes included.

Document the Repair Timeline

Request detailed repair timeline estimates in writing, and ask the facility to maintain a daily log of progress, including photographs of repair stages and explanations for delays.

Account for Weekends and Holidays

Include non-working days in your calculation, including their impact on labor, parts, and insurance adjuster availability.

Apply the Right Multipliers

Multipliers are variables that increase the daily rate for a rental. For luxury rentals, that’s market premium, limited availability, and exclusivity, with additional multipliers if the car is used as a commercial vehicle.

File a Professional Claim

Arrange documents chronologically, provide a breakdown of daily rate and total repair days calculations, and justify your numbers with written and photographic evidence.

The SuperCarClaims.com Approach to Loss of Use Claims

We know how to calculate loss of use of a vehicle – we do it every day.

Our expertise with exotic vehicles makes us a trusted partner in supercar loss of use claims. We can submit a formal demand letter on your behalf that includes an overview of relevant regulations, a visual timeline of repairs, and an accurate loss of use calculation based on your actual daily rental rate and repair schedule.

How to Calculate Loss of Use of Vehicle: Guide for Supercar Owners