by Guest » Thu Aug 11, 2011 05:05 pm
My car was damaged by a fire that started in the engine of the car parked next to mine in a Walmart parking lot. My claim was denied by the insurance company of the at-fault vehicle (GEICO). After 96 days of denial, they finally agreed to pay for my repairs. I was without a vehicle the entire time.
Now I am claiming for loss of use and they're low balling me. At first they offered to pay me $10 a day for 96 days, and then they moved their offer up to $15 a day. I have a 7-passenger Minivan, the equivalent of which rents for $99.99 per day from Enterprise Rental.
I am asking for $40.73 per day loss of use, which figure works out to be the per-day rate for a comparable Minivan on a monthly rental plan from Enterprise.
I think this is reasonable. What do you think?
Now I am claiming for loss of use and they're low balling me. At first they offered to pay me $10 a day for 96 days, and then they moved their offer up to $15 a day. I have a 7-passenger Minivan, the equivalent of which rents for $99.99 per day from Enterprise Rental.
I am asking for $40.73 per day loss of use, which figure works out to be the per-day rate for a comparable Minivan on a monthly rental plan from Enterprise.
I think this is reasonable. What do you think?
Posted: Thu Aug 11, 2011 06:52 pm Post Subject:
Do I think it's reasonable? No and no. It's not crazy though and you can certainly start with that demand.
The bottom line is that you have a duty to mitigate your loss. This includes repairing your vehicle. If repair time would have been 10 days then add, lets say, 5 days onto that and LOU would be around 15 days in that case.
LOU can be based on the cost of a rental. But it's for a "similarly equipped" vehicle (automatic, 4 wheels, etc). You can certain raise the argument that you have 8 kids that needed to be shuttled around but can you support this claim? A full size vehicle can seat 5. Again, you can argue you needed to seat 8.
At the end of the day I think you may need to take their offer, you demand and be willing to split it somewhere in the middle.
I _can_ tell you that they are never going to pay $10,000 for LOU. Personally, I think $1000 is pretty good offer (but it depends, the repair time could have been longer then average).
Posted: Fri Aug 12, 2011 08:11 pm Post Subject:
Did you rent a vehicle during the time you were without your minivan? What were your actual expenses for not having your vehicle? If you had no out of pocket expenses due to the loss of use of your vehicle, it is hard for you to make a case for compensation.
If you did not rent a car, you may be lucky they are offering you anything for loss of use. Suggest the $40.73 daily rate based on your reason for it, to get the best settlement you can, but don't let your situation get reviewed by a manager, or more experienced adjuster -- you may not get anything for loss of use if you can't prove damages due to the loss of use of your mini-van.
Posted: Fri Aug 12, 2011 09:05 pm Post Subject:
The poster would be intitled to LOU even if they did not obtain a vehicle. There is a hardship (damages) involved with being without a vehicle. This is what LOU is. However, as mention (and well put), its difficult to support a $50 demand for a van when you did not have that expense.
Posted: Mon Aug 15, 2011 03:41 pm Post Subject:
If you rented a vehicle during the time that your car was under repair, it would be reasonable to ask for the rental fee during the time. It would be hard, even for the top insurance companies to give what you're asking with justification
Posted: Mon Aug 15, 2011 08:09 pm Post Subject: loss of use
I appreciate all your responses and your points of view. However, it is my understanding that they should pay me what the rental would be for a comparable vehicle. I am willing to settle for $30 a day, and they are not willing to budge. I may have to get a lawyer to write them a letter.
Posted: Mon Aug 15, 2011 08:09 pm Post Subject: loss of use
I appreciate all your responses and your points of view. However, it is my understanding that they should pay me what the rental would be for a comparable vehicle. I am willing to settle for $30 a day, and they are not willing to budge. I may have to get a lawyer to write them a letter.
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