Understanding “Loss of Use” Claims
According to the Texas Motor Vehicle Traffic Crash Facts, there were 473,499 total passenger cars involved in traffic accidents statewide in 2022. Being involved in a motor vehicle accident can be a devastating experience. In Texas, individuals who lose their vehicles or personal property in a negligent accident may be entitled to seek loss-of-use damages. This will help compensate the property owner for the damages suffered during the period they're unable to use their damaged car or property.
At Jose Orihuela, Attorney at Law, I provide experienced legal counsel and vigorous representation to clients in their auto accident cases. As a highly skilled Texas personal injury attorney, I can assess your case, estimate the value, and assist in filing your loss of use claim. Additionally, I will fight for your rights and help pursue the maximum possible compensation for your injuries and damages. My firm proudly serves accident victims throughout Houston, Webster, Alvin, Clear Lake, Dickinson, Pasadena, Santa Fe, and South Houston, Texas.
What Is a Loss of Use Claim?
A loss of use claim can be described as a civil action or insurance claim filed by a person who suffered property damage or vehicle damage in an accident. The purpose of loss-of-use damages is to compensate the claimant for the damages suffered for a specific period until they're able to repair or replace the affected property.
For instance, depending on the severity of the crash, you may need to take your vehicle to an auto workshop. During this period, you may be unable to use your vehicle. Hence, you may seek financial compensation through a loss of use claim to cover the amount lost or expenses incurred for not being able to use your vehicle, such as the cost of renting a substitute car or taking public transport.
When to Claim Loss of Use Damages
As mentioned earlier, a loss of use claim will provide compensation to you to cover the period when you're unable to use your damaged vehicle or property. Hence, you may be able to claim loss of use damages for the duration that you're unable to use your vehicle or property while it is being assessed and repaired. Therefore, it will serve as compensation for public transportation, car lease, or rental, or any other fair transportation cost incurred due to the loss of use of your vehicle.
Loss of Use Awards
Some possible damages that may be recovered by filing a loss of use claim in Texas include:
Cost of public transportation such as bus or taxi.
Cost of a rental car.
Also, to calculate the loss of use of a vehicle, the insurance provider will consider the following:
Your car's insurance premium.
Your car's value or monthly payments.
The cost of maintenance incurred.
The cost of recent repairs made, fluid changes, and tires.
The cost of wrapping or lettering the vehicle (if used for business purposes).
An experienced attorney can evaluate the amount of compensation you may recover and help file your loss of use claims.
The Filing Process
Here are the steps involved in filing a loss of use claim:
Hire a practice attorney for detailed guidance and to help file your claims.
Document the vehicle damages and take pictures.
Inform your insurance provider that you need to file a loss of use claim.
Review your auto insurance policy to know the amount you're entitled to, such as the daily coverage limit.
Get several quotes from different auto repair shops. This will help ascertain how long the repairs might take.
Put every detail about the accident, car damages, and repairs into writing.
Submit your claims and provide the necessary evidence, police report, and supporting documentation.
A seasoned Texas car accident attorney can direct you through every phase of the claims process and improve your chances of the most favorable outcome.
Common Reasons Claims Are Denied
Here are some common reasons why your loss of use claim or other auto insurance claims may be denied:
The auto crash was avoidable.
Failure to file your claims within the specified deadline.
You have exceeded your policy limit.
You do not have the required insurance coverage.
You violated the law.
You failed to report the incident to the police.
You provided false information when purchasing the insurance coverage.
If the insurance provider has denied your claims, you should request the reason for the denial. Your attorney can review the reason for the denial and help you file an appeal.
Trusted Legal Assistance
If your vehicle requires extensive repairs after an accident, you may be entitled to recover loss-of-use damages for the period your car is evaluated and fixed. However, filing a loss of use claim often requires several complex procedures. At Jose Orihuela, Attorney at Law, I have devoted my career to offering experienced legal services and guiding clients in their auto accident claims.
As your attorney, I can analyze the vehicle damages, estimate your case value, and help file your loss of use claims. In addition, I will advocate for your best interests, handle all discussions and negotiations with the insurance provider, and help you recover the maximum available loss-of-use damages.
Contact me at Jose Orihuela, Attorney at Law, today to arrange a case evaluation with a trusted personal injury lawyer. My firm proudly serves accident victims throughout Houston, Webster, Alvin, Clear Lake, Dickinson, Pasadena, Santa Fe, and South Houston, Texas.