Expert: Richard Hixenbaugh - 11/4/2009

Question
My car was involved in an accident on Sept. 15.  When I went to report it to my insurance company, I found out my insurance had been canceled, but since it was the other person's fault, I could go after their insurance company.  It took their insurance company over a month and half to claim liability because the insurer never reported the accident or responded to them trying to contact her.  So for over a month and half, I went without a car because they would not give me a rental until they claimed liability.  So for over a month and a half I had to pay people to  take me to and from work and various places.  Now they've claimed liability, I've put my car in the shop and I have a rental and they mailed me a check for for $250 for loss of use.  Is loss of use the amount of time you are without a car while it is being repaired?  If so, what do I need to seek for the amount of time I went without a car, prior to them claiming liability?

Answer
Hi Nica,

Generally, a loss of use payment would be $15.00 to $20.00 per day for each day you were without your car and did not have a rental car. So it appears that thay paid you for approximately 16 days. You should argue that they owe you more. They will likely give you a hard time and you will have to negotiate back and forth. In the end they willbe banking on the fact that the other $450.00 is not enough for you to file suit over.

I hope this helps
Richard Hixenbaugh