Auto Insurance Claims: Reimbursement for loss of use, damage settlement, initial settlement

Question
I am in New Mexico and was involved in an accident that was determined to be the other driver's fault.  My vehicle was totaled and was completely  disabled.  I left the scene after giving the police officer my information because of my injuries, but as a result, I did not get the other driver's information.  I had to wait almost 6 weeks before I received the police report.  As soon as I got it, I contacted the other driver's insurance company, which has now been over a month ago.  I have been completely without a vehicle this entire time.  I was offered a rental car with the initial settlement,  but was told I would not be compensated for loss of use.  I did not take the offered property damage settlement, which meant I did not take up the offer of the rental car, which would have only been for "a few days," according to the adjustor.  It has now been two weeks since I have heard from the adjustor on my claim and I am wondering if I am entitled to be compensated for my loss of use, and if so, from what point in time...meaning from the date of the accident or the date I was able to notify the other insurance company? If I am eligible to be compensated, how do I go about asking for it?

Answer
Hi Melissa,

This is a difficult question. The reason it is difficult is because on the one hand you are entitled under the law to be paid for loss of use or a rental car for a "reasonable period". However, there is another law that requires you to mitigate your damages. That means that you must do what ever is necessary to keep the costs as low as possible. That means that if you could not get in touch with the at fault persons insurance company, you should have had your own insurance company handle the claim. This would have limited the number of days that you would have been owed a rental car or loss of use.

So the insurance company is going to try to use that portion of the law to keep from paying you. This is of course a negotiated process. So you should try to stand your ground and try to get as much as possible.

I hope this helps
Richard Hixenbaugh