Auto Insurance Denies Full Payment for Loss of Use Claim
To summarize, I was involved in a minor collision in Georgia last October where I wasn’t at fault. I filed a claim with the insurance of the at-fault driver. Before scheduling repairs, the insurance adjuster informed me that I could choose between reimbursement for a comparable rental car while my vehicle was being repaired or filing a loss of use claim at a set daily rate.
I dropped off my vehicle at the body shop in early December after going through the initial repair estimate with their insurance and scheduling an appointment. To avoid any hassle with rental reimbursement, I arranged for alternate transportation.
While working on my vehicle, the body shop uncovered additional damage and received approvals for supplemental repairs. As a result, my vehicle was in the shop for nearly 50 days total before the repairs were completed.
When I submitted my loss of use claim, the adjuster only offered payment for 13 days of loss of use, citing “that’s what was listed on their repair estimate.” However, I have not received any documentation indicating a 13-day timeframe, nor is there anything from the body shop that supports this claim. The only document I received breaks down the hours worked and parts replaced, but it does not specify the number of days needed for repairs.
I’ve requested to see their full policy and limits regarding loss of use claims, but I have yet to hear back. From what I understand, their policy may allow for more than just 13 days of reimbursement.
Am I entitled to reimbursement for the actual number of days I was without my vehicle, rather than relying on their arbitrary estimate, assuming their policy cap exceeds 13 days?
It sounds like you’re dealing with a frustrating situation. In general, when it comes to loss of use claims following an auto accident, insurance companies are obligated to indemnify you for the actual loss you incurred, which typically means covering the time your vehicle was out of commission due to repairs.
If your car was in the shop for almost 50 days, and you have documentation to support this, you should be entitled to reimbursement for that full period, as long as it falls within the limits of the at-fault driver’s policy. The fact that the adjuster is citing a repair estimate that doesn’t reflect the actual repair timeline could be seen as unjustifiable, especially if they haven’t provided you with the documentation that supports their claim.
Here are some steps you can take:
Request Documentation: Continue pressing the insurance company for their full policy details and any documents that justify their claim of only 13 days. Make sure to keep a record of all your communications.
Body Shop Documentation: You may want to ask the body shop for a formal statement or letter confirming the duration your vehicle was under their care for repairs. They may be able to provide you with additional evidence to back up your claim.
Policy Review: If you get access to the loss of use provisions in the insurance policy, review them carefully to confirm what the limits and requirements are for reimbursement.
Negotiation: If the insurance company still insists on the 13-day limit, consider negotiating with them. Present the facts clearly, highlighting the discrepancies and your right to be compensated for the actual time you lost the use of your vehicle.
File a Complaint: If you’re unable to reach a satisfactory resolution, you can file a complaint with your state insurance department. They can intervene and help facilitate a clearer resolution.
Consider Legal Advice: If the amount of money involved justifies it, consulting with an attorney who specializes in insurance claims can provide you with additional options and insights into how to proceed.
Document everything and stay persistent. The more organized and informed you are, the better your chances of receiving the full compensation you deserve. Good luck!