What Is Loss of Use in a Texas Car Accident

“Loss of use” refers to a person’s inability to use their damaged vehicle or other property while it is being repaired or replaced after a car accident. While recovering compensation for loss of use after a car accident may seem straightforward, there can be considerable confusion over what loss of use covers and the damages you may be entitled to recover in a loss of use claim.

The car accident attorneys at McKinney Vos can analyze your situation, advise you on your rights, and help you recover compensation for loss of use and other damages after a Texas car accident. Our lawyers have years of practice experience and have earned a reputation for obtaining superior results on behalf of our clients. Contact McKinney Vos today for answers to your questions about loss of use after a car accident and to put our expertise to work for you.

Understanding Loss of Use in a Texas Car Accident

“Loss of use damages” refers to compensation someone is entitled to receive when they cannot use their vehicle or other property because of damage caused by someone else. Loss of use damages cover losses you experience while your vehicle or property is being repaired or replaced, such as the cost of a rental car and the inconvenience of being unable to get to work or perform other daily tasks.

Types of Damages Available in a Loss of Use Claim

Two types of loss of use damages are available. Direct damages refer to the actual cost of renting a replacement vehicle or property while yours is being repaired or replaced. Indirect damages are expenses you may incur due to not being able to use your car or other property, such as lost income or additional transportation costs you incur. Direct damages are generally calculated using the cost of the rental vehicle or property.

Indirect damages may depend on factors such as the nature and extent of the damage to your property, the length of time you are unable to use your vehicle or property, and the nature of your work or other opportunities you missed out on because you were unable to use your vehicle or property.

Loss of Use for Repairable Vehicles

If you were not at fault for causing the accident and your vehicle or property can be repaired, loss of use damages apply to the period of time it takes for your vehicle to be repaired. Depending on the extent of the damage, the period of compensable damages can range from a few days to several weeks.

Loss of use damages for repairable vehicles are calculated using the reasonable rental value of a substitute vehicle for the time required to repair your vehicle. You are not required to rent a substitute vehicle to seek compensation for loss of use damages, and damages are not limited to the total value of your vehicle.

Loss of Use When Your Vehicle Is a Total Loss

When your vehicle is damaged to the extent that it is considered a “total loss,” you are entitled to recover the full market value of the vehicle as it was immediately before the accident. You can also claim loss of use damages during the time reasonably required to find a replacement.

The “reasonable” replacement time can depend on several factors, such as the availability of a comparable vehicle, the time required to make financing arrangements, and your diligence in seeking a replacement vehicle. Loss of use damages can also include the cost of alternative transportation such as a rental car, public transit, or ridesharing services like Uber or Lyft.

Loss of Use When You Are At Fault

If you were at fault for causing the accident, recovering loss of use damages changes significantly. Typically, the at-fault driver cannot claim loss of use damages. However, you may be able to claim loss of use damages if you have rental reimbursement or loss of use coverage in your auto insurance policy. However, these coverages are not standard in most auto insurance policies and typically come with additional premiums.

Rental reimbursement or loss of use coverage will pay for the cost of a rental car if your vehicle was damaged in an accident and requires repairs. These coverages are generally subject to daily and total limits, meaning your coverage will only pay up to a certain amount per day, and a total overall.

Protect Your Rights After a Texas Car Accident

When a car accident causes personal injuries or property damage, the car accident attorneys at McKinney Vos can help. We can analyze your situation, help you evaluate your options, and fight for the compensation you deserve.

Our lawyers have years of experience representing people in Texas car accident cases. We understand the insurance coverages that may be available in your situation and we know how to maximize your financial recovery. Contact our law firm today to schedule a free, confidential, and no-obligation appointment to discuss your situation and how we can help.