Car Accident Loss of Use: How to Calculate Your Daily Rate & File a Successful Claim
When you’re left without a vehicle after an accident that wasn’t your fault, you may have the right to file a Loss of Use claim. One of the most common questions we hear is, “How do I calculate my daily rate for Loss of Use?” This guide will walk you through the essentials covering the basics of Loss of Use, how to establish a fair daily rate, and how to file a successful claim. We’ll also share why working with a knowledgeable personal injury law firm can make all the difference.
1. What Is Loss of Use?
Loss of Use refers to the money you’re entitled to when you can’t use your car because of someone else’s negligence. Instead of focusing on vehicle damage alone, this claim covers the inconvenience and extra costs you face when your car is out of commission. A common scenario is renting a replacement or paying for rideshares to get around. In many states, including Florida, New York, and New Jersey, a valid Loss of Use claim can help you recoup those expenses so you can get back on track more quickly.
2. Why Calculate a Daily Rate?
Establishing a daily rate is central to most Loss of Use claims. It’s essentially the amount you would reasonably need each day to replace your vehicle’s functionality. Insurance companies, courts, and even juries use this figure to determine how much you should be compensated for each day you’re without your car.
Key Factors in Determining Your Daily Rate
Average Rental Costs: The going rate to rent a vehicle that’s similar in type and quality to yours.
Market Rates in Your Area: Urban areas typically have higher rates than rural ones.
Length of Repair/Replacement Time: How many days will you truly need a rental (or other paid transportation)?
Your Vehicle’s Classification: Is it a standard sedan, a luxury SUV, or a specialized vehicle?
3. Step-by-Step: Calculating Your Loss of Use Daily Rate
1. Identify a Comparable Vehicle
Why it matters:
If you drive a premium SUV, renting a compact car may not reflect your true inconvenience or costs. A comparable vehicle ensures your daily rate calculation is accurate.
2. Check Local Rental Listings or Averages
Documentation tips:
Gather quotes from at least two or three reputable rental companies. Keep these quotes as evidence when negotiating with insurance adjusters.
3. Factor in Additional Costs
Don’t overlook extras:
If you need specific features like handicap accessibility or towing capacity, document any higher daily surcharges.
4. Multiply by the Total Number of Days
If your mechanic says it will take 10 days to fix your vehicle and a comparable rental is $250 per day, your starting point is $2,500. Adjust accordingly for total loss or longer repair times.
4. Filing Your Loss of Use Claim
Step 1: Establish Fault
Show that the other driver (or a third party) is responsible for your vehicle’s damage. Gather police reports, photographs, and witness statements.
Step 2: Gather Documentation
Repair Estimates or total-loss valuation
Proof of Days Without Your Car
Rental Car Invoices or rideshare receipts
Comparable Rental Quotes if you opted not to rent a vehicle
Step 3: Submit Your Evidence
Present your daily rate calculation to the at-fault party’s insurance company. Clearly explain how you arrived at that figure.
Step 4: Negotiate or Litigate
Insurance companies might try to lowball your daily rate. If a fair settlement isn’t possible, you may need to file a lawsuit to recover what you’re truly owed. An experienced attorney can handle this process and advocate on your behalf.
5. Why a Knowledgeable Accident & Personal Injury Law Firm Helps
Even with thorough evidence, insurance companies often minimize or deny Loss of Use claims. Having a skilled attorney by your side can:
Strengthen Your Case with clear evidence, expert witnesses, and accurate valuations.
Negotiate for Fair Compensation so you don’t pay out of pocket for someone else’s negligence.
Handle Legal Timelines and paperwork, ensuring you meet filing deadlines and don’t lose out on potential compensation.
Here at The Sheldrick Law Firm, we focus on maximizing recovery for clients in Florida, New York, and New Jersey. We’ve successfully handled dozens of Loss of Use and Diminished Value cases, recovering hundreds of thousands of dollars for our clients. Attorney Kayla Sheldrick is well-versed in this area of law and is ready to guide you every step of the way.
Need Help with a Loss of Use Claim?
If you’re ready to calculate your daily rate and seek rightful compensation, The Sheldrick Law Firm can help. Reach out to us 24/7 at (561) 440-7775 or fill out our Loss of Use Form to get started.
Once submitted, an attorney will be in contact with you.
FLORIDA CASE LAW: LOSS OF USE
Read our blog about Florida Case Law for Loss Of Use
Frequently Asked Questions on Loss of Use & Daily Rates
Q: How do I calculate a daily rate for Loss of Use?
A: Identify a comparable rental vehicle, check local market rates, and multiply by the days you’re without your car. Keep receipts or quotes to back up your numbers.
Q: Can I still file a claim if I didn’t rent a car?
A: Yes. Even if you didn’t rent a replacement vehicle, you may still be entitled to compensation for the inconvenience and loss of use, just document your situation thoroughly.
Q: What if my insurance company disputes my daily rate?
A: Many insurers try to lowball claims. Providing clear evidence, rental quotes, repair estimates, and expert opinions can help you negotiate for a fair settlement.
Q: Does Florida calculate Loss of Use differently than New York or New Jersey?
A: Each state has its own rules, but the concept is similar. In Florida, for instance, you’re generally allowed to file for Loss of Use if you can demonstrate fault and prove how long your vehicle was out of commission.
Q: Is hiring an attorney necessary for a Loss of Use claim?
A: While not mandatory, an experienced attorney can significantly improve your chances of getting full compensation by handling negotiations and ensuring you meet all legal requirements.
Do You Know About Diminished Value?
You may be entitled to Diminished Value as well, learn more by reading our Diminished Value Blog here.
Don’t Settle For Less. Contact us today to see how we can help you navigate the claims process and recover the full value of your Loss of Use claim.
Disclaimer
This content is for informational purposes only and does not constitute legal advice. For advice tailored to your individual situation, please consult our Loss of Use attorney Kayla Sheldrick.