QuestionMr. Petty,
Recently I was in accident where I was rear ended by another car. The auto insurance of that driver has already accepted fault, so they will be paying for my repairs and such. They will also be paying for a rental car to replace mine until the shop has fixed it. My problem is that I don't meet all the criteria to get a rental car. I don't have a credit card (I'm only 21 and I'd rather wait till I have a stable job to be able to pay credit card bills) and if I use my debit card linked to my bank account they require that I show a utility bill with my name on it and a pay check stub. The pay check I can show but there are no bills with my name on them because I live in an apartment with two other roommates who have the bills in their names. Plus I'm not on the lease since I moved in later than they did. What do I have to do or prove to still get covered for loss of use of my car? I am having to go out of my way to find rides to and from work, and it is extremely inconvenient because I work 40+ hours per week. Also how much money per day is a reasonable amount to request? Thanks for your help!
AnswerI don't know what State you are in, but generally you have to qualify for the rental car on your own, and the insurance company can't help with that. I'm sure you understand that as not having a credit card at your age is reflective of a pretty sharp individual. Do you not have a cell phone bill? Those will usually work.
As for what the reasonable amount is, it ranges from $25 - $35 per day depending on the class of vehicle which is damaged. You should see if the insurance company will just cut you a check for the entire estimated loss of use (divide the labor hours on the repair estimate by 4 to get the estimated days of repair, and add two days for every 5 to account for weekends). Essentially, ask them (ins. co.) to just cash you out for the rental expense. When I was adjusting I commonly offered this type of settlement with the understanding that I would pay no more on the loss of use after cashing it out. Anyway, you should be able to get this done and either use the money to pay your friends for rides or see if the rental car company will take a cash deposit up front (some will, but you have to ask). Unfortunately, the hassle of arranging for substitute transportation is just part of being in a wreck.
Now, after your repair is completed, make sure you present a diminished value claim. Almost every vehicle that is in an accident and repaired loses market value. If I have two identical vehicles listed at the same price and I tell you one of them has been in an accident and repaired, which would you want to buy. . . the repaired one or the one that was never in an accident?
It is clear that public and dealer perception of a wrecked and repaired vehicle is damaging to the market value of your vehicle. Repairs can also void warranties. There is an abundance of evidence to support diminished value, and in 15 years I have not yet seen a third party case where the vehicle owner sued and didn't get paid. Insurance companies will definitely fight and sometimes will just flat out attempt to bully you by simply saying diminished value is not allowed in your State (most people give up, so the insurance company wins). While it is true that many States have adopted an exclusion in the insurance policy for diminished value, that exclusion only applies if you are filing the claim against your own policy. If you are filing against someone else's insurance, diminished value is, and I repeat, "IS", recoverable without fail if you fight hard enough. Don't take a huge financial hit on a vehicle accident, call us for a free consultation and more information if you need it. Information is always free at Petty Details, LLC! Search for us on the web and call us anytime, I normally personally answer the phone! I am a horse of a different color.
Sincerely,
Justin Petty
