Thanks, I checked with GEICO, they don't cover loss of use. But rental coverage is effectively limited to actual costs incurred. Loss of use is defined as the time the car is out of use while in the process of being repaired when it could have been rented by other customers — meaning that the car rental company lost out on revenue and profit as a result of the accident. When a person suffers the loss of use of their vehicle for any period of time, they have the ability to be compensated for a rental car, public transportation and/or any other reasonable transportation expenses incurred as a result of the loss of use of their vehicle and/or transportation means. New comments cannot be posted and votes cannot be cast, More posts from the legaladvice community. "See the original story here, outlining the case and implications for the car rental … Join our community, read the PF Wiki, and get on top of your finances! Rental Car Loss Of Use. A third-party loss of use claim is different. In my case, garage estimated 4 days but car was ready for collection in 2 days. Mondragon appealed for various reasons but the focus here is on the loss of use. You can do without the LDW/CDW if you pay for the car rental with a … LOSS OF USE (Per day) $ PRIVATE CARS Up to 1,600cc and 97kW (130bhp) [Category A of COE] 100-120 60-80 1. The doubt comes from something the industry now calls "loss of use." The Car Rental Loss-of-Use Loophole. If I would rather take cash instead of having them set up a rental for me, can I do that? Cal. If you hold loss of use coverage as part of your auto insurance policy, this essentially translates to rental car reimbursement if your vehicle is out of commission while undergoing repairs after an incident. If you have an accident with a rented car, that vehicle is likely to be out of commission for a number of days as repairs are made. Was I lied to or is this really the law in FL? Sorry, this post was deleted by the person who originally posted it. That is essentially redundant with what rental car companies call a Loss Damage Waiver or Collision Damage Waivers. After I left, I tried Google but could find no law/requirement. But under the hood, loss of use looks more like a junk fee. TravelBuzz - Rental Car Damage--LOSS OF USE - I returned a rental car to Budget recently (in Washington state), and they noticed a 2 inch long scratch/ding on the passenger side fender--I didn't notice it, so it must have happened in the hotel parking lot the night before. Loss of use car insurance coverage may be cost-effective if you rely on your vehicle for daily commuting and other responsibilities, and would rather not deal with the inconv… In the car rental industry, a “loss of use” charge is precisely as indicated — a charge based on the time needed to repair the vehicle. [TX, CO] Rental car "loss of use" - what are my options? Amazingly, this is true even though the rental car company has other vehicles available for rent. 5. Primary car rental coverage for damage or theft to the rental vehicle, loss of use, and applicable related charges; Coverage limit of up to $100,000 for damage/theft but less can be selected; Up to $100,000 accident death/dismemberment ($250,000 for California residents) Rental receipts, consider possibility that they may be inflated. In other words, the property owner is being compensated for loss of use, not loss of revenue, while the vehicle is out of service. For those who may not know, 'Loss of Use' is what the rental car companies charge when a car is unrentable due to accident or theft. Insurers want to see the rental company's fleet utilization logs. I declined insurance from the rental company because I thought I was fine - not only do I have my "normal" car insurance which covers rentals, but my credit card company also covers anything my normal car insurance doesn't, when I rent using my car. When I picked the car I was prepared for the CDW hard sell and declined. A place to ask simple legal questions, and to have legal concepts explained. $72 for 11 days rental. Usage e.g. As others have pointed out, LDW is not liability insurance.In fact, it is technically not insurance but a waiver of the rental company's rights to charge the renter for damages to the car subject to certain exceptions.. Protect the Car (Loss Damage Waiver) At Hertz, we want you to know the facts before you rent. If it's a company policy, which sounds more likely, that makes a lot more sense. I know most personal auto insurance and/or credit card coverage does not cover loss of use and was prepared to take the risk. At Enterprise, the largest car-rental company, loss of use is based on the total number of labor hours from the repair estimate, divided by four, which the company says is a conservative estimate of labor hours that can be incorporated into each work day, and then multiplied by the daily rental rate. The salesman said I had to show that my personal auto insurance covered "loss of use" that it is the law in FL. In turn, the rental car company bills you the amount of money which it claims you owe to compensate it for the loss of use of the vehicle — even if it supposedly suffered no financial loss.A p… "Loss of use" is a car rental concept that, on the surface, seems reasonable. Interesting. Press J to jump to the feed. I was at fault for the accident as I received and paid a $150 failure to yield citation. This was stated by the Tyler Court of Appeals in 1994. When I picked the car I was prepared for the CDW hard sell and declined. They generally refer to cars with OMV of $35,000 and above on first registration The inquirer asked whether a rental car company may recover all elements of damage to a rental car, including physical damage, loss of use, diminution of value and administrative fees. If it isn't, please direct me to the correct one :) Last September, I totaled a rental car in Utah. PurCo V. Koenig: A Win for the Industry. Archived. Auto. If the rental company had other unused similar cars at the time, insurers argue the rental company suffered no loss from the unavailability of the damaged car. Loss of Use is a murky surcharge, as the laws vary from state to state. u/tatertat2. Insurer will reimburse via bank transfer. If you damage a car and it has to get repaired, you compensate the company for what it would have made as a rental if the vehicle had been available. No. TIL you can rent cars through Costco. Luxury cars are dependent on make and model. The Car Rental Loss-of-Use Loophole If you decline CDW because you believe you are covered through your personal auto insurance or credit card, getting slapped with Loss of Use fees can come as a shock. Sounds like they have not told you the amount you are entitled to for loss of use per day, you'll need to know that before you get a rental car. Loss of use on rental car. I rented a car for a weekend trip. Recently I was advised on this Transportation Board that Visa covers Loss of Use. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. I don't know if it's the law or not, but it is not illegal for a sales associate to lie or to backtrack on what they said. 3. The charges for damages depends on the fair market value of the car, loss of use from how long it takes to repair the damage and any administration charges. travelling salesman 2. Auto. 2 years ago. “Loss of use” is a car rental concept that, on the surface, seems reasonable. Can anyone tell me where to find car rental insurance (other than that sold by the rental car agencies) that will cover "loss of use"? I hope this is the right subreddit for this. 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