Expert: Richard Hixenbaugh - 12/17/2010

Question
I was involved in an accident for which I was not at fault.  It has been three months and we are finally getting to a resolution after a lot of wishy-washy cheap tricks from the responsible party's insurance company.  They have gone from telling me the vehicle was totaled to suddenly claiming it wasn't and trying to settle the claim with a check to cover the appraiser's estimate which explicitly stated that no mechanical issues had been reviewed to assess damages.  Since then I have had my vehicle taken to a mechanic and they have turned a supplemental estimate after tearing down the vehicle.  The insurance company is now back to telling me the vehicle is totaled.  I was offered a rental car by the insurance company but decided not to take it because of the $20 a day insurance that I was told I would be responsible to pay.  My question is am I entitled to a "loss of use" payment for not taking the rental. Are they obligated to reimburse me for this? Thanks!

Answer
Hi Rebecca,

Yes, you are entitled to be paid for loss of use. A reasonable figure would be about $20.00 to $25.00 per day from the date of the accident until you receive a settlemet check from the insurance company.

Of course they may try to play hard ball because the amount is not an amount that you would likely file suit over. So expect them to to try to low ball it. It will require some negotiation to reach an agreed amount, but just keep moving up the chain of command if needed. Oftem a supervisor or manager can often do things th regular claims adjuster can not.

Also for future referrence, you should check with your own auto insurance to see if they would have covered you while in a rental car. If so, you would not have to purchase the rental car companies insurance.

I hope this helps
Richard Hixenbagh