QuestionI was just reading a post of Auto Insurance Claims/Arguing loss of use, adjuster not willing to pay tax on rental vehicle rate.
My mom was in a wreck and I stepped in the help her get a resolve, but not satisfied with the loss of use they want to give her.
The wreck occurred Oct. 27, 2010
My mom called and requested a rental Oct. 28, 2010
The insurance company told her it was under investigation.
The person driving a car ran a stop sign and hit my mothers vehicle, the car the person was driving was a borrowed car. The person driving the borrowed car had car insurance, but not for the borrowed car they were driving. The owner of the said borrowed car had insurance. So the investigation was about which insurance company was to pay the claim.
Adjuster went out Nov. 3, 2010, he totaled the vehicle
My mom called weekly requesting a rental and pricing on the totaled vehicle, to no avail. She spoke to many different people, trying to get a resolve.
Dec, 10, 2010 A letter was receive from the drives insurance stating in a letter they were not responsible. The drivers insurance company sent a copy to my mom and the other insurance company (the owner of the cars insurance) again calls were made by my mom requesting a rental and payment.
The owner of the cars insurance said they were waiting on the other insurance company to send a letter stating the drivers insurance was not responsible. My mom said she read the letter to him, which she received and asked if he wanted a copy, he told her not to worry about it, he would take care of it and get a copy form them.
I wondered what the hold up was so my mother informed me of what transpired. I asked her if I could three-way her and call the insurance company with her. After a day of morning to afternoon calling to get help from the insurance company, I finally had to tell them I would have to seek legal help to get this resolved if I didn't hear from someone the next morning.
Jan. 11, 2011 I received a phone call to only hear they are waiting on that same paper, so asked the claims agent for her fax number, called the other insurance and ask them to fax over the said letter, she explained it would be the 3rd letter they would have sent. They sent two other letters, with the last one sent Dec. 10, 2010.
Jan. 11, 2011 the owner of the cars insurance said they received the letter.
Jan. 12, 2011 the owner of the cars insurance, gave a price on my moms totaled vehicle, then said they would also pay for loss of use of $20.00 for a total of $300.00. I figured it was for 15 days, so I asked how did they come up with 15 days? The claims person said that is the time frame it normally takes to process a claim, so that is the allowance of a normal rental. I explained how this was not NORMAL. I explained my mother was without a vehicle for 78 days and a rental cost more than $20.00 a day. The claims agent asked what did I think was needed for loss of use and I said well if you are paying only $20.00, then time that by 78 days and you owe her $1,560.00 for loss of use. The claims agent said she would call back and she did and said they would only allow her to pay 30 days @ $23.00 a day which is $690.00; however I forgot to ask why now $23.00 dollars? I said I did not believe that was right and they still owed her the $870.00 with the $690.00.
The question what is see entitled?
AnswerHi Rebecca,
Thanks for the detailed explanation.
Your mother is owed for the actual cost (including sales tax) of a rental car for the days that she actually rented a car. Then for any days that she did not actually rent a car she is entitled to be paid for "Loss of Use". Loss of use is a flat daily amount that does not include sales tax because there is no sales tax charged since she did not actually rent a car.
You should send a letter to the insurance company by certified mail/ return receipt requested. Include with the letter and paid rental car receipts. And in the letter state that you are seeking paiment for the actual rental cost incurred as well as payment for loss of use at $23.00 per day for the remaining days that a car was not rented. End you letter by stating that you demand payment or a detailed explanation of their position in writing within 15 days. If they do not pay you or do not pay you enough or do not answer you at all, then you would have to file suit in small claims court against both the driver of the car and the owner of the car that hit you. You may want to speak to an attorney for procedural information.
I hope this helps
Richard Hixenbaugh
