Auto Insurance Claims: Total Loss, work Vehicle, business vehicle information

Question
QUESTION: Dear Justin,
I have read some of your questions and answers regarding rental vehicles and "Total Loss" in the state of Texas. I operate a private car service using SUV's. A gentleman ran a stop sign and 2 weeks later I come to find out my vehicle is totaled.
This vehicle is my livelihood.  Do the same, no reimbursement rules apply in this situation?  Can I make a claim for loss wages?
Jim

ANSWER: This is a tricky subject as commercial use is a little different story.  The same rules apply as far as rental goes, but it is much easier to prove loss of income for the time it took the insurance company to decide the vehicle was totaled.  I would suggest making the claim and letting the company respond in writing as to their position.  Once you have a written response, we can see if their position is valid or not.  

Loss of income and lost wages are different things, just fyi, so you have a loss of income potential due to the vehicle being down.  Additionally, if the vehicle was specially equipped, then there is a potential claim for the customization required to make any replacement vehicle comparable to your lost vehicle.

I hope this helps, and don't be afraid to call us directly.  We are having some cell phone issues, so listen to our message if you decide to call us and it will direct you to a new number where you can reach me.

JP

---------- FOLLOW-UP ----------

QUESTION: JP,
Thank you for your response.
I presume loss of income is tied into loss of use of the vehicle.  Since I had to rent a vehicle I have actual values for lost revenue.  Is it better to submit that or an average of historical income?
Also, would loss of income apply to when the vehicle is totaled or when I am presented with a settlement option?
Thanks again,
Jim

Answer
Jim,

  You simply have a tort claim, so you simply need to prove your damages, what they are called really is a trivial issue.  Without having all of the details on your case, I can be of limited help, but here's what I am gathering. . .

1.  Your vehicle is used as a sort of "taxi" or "limo".
2.  The vehicle has not been available for use since the accident.
3.  The insurance company has totaled it.
4.  You are still negotiating your property loss.
5.  You rented a replacement vehicle

   Now with that information, I am still missing some important information. . .

1.  How many vehicles do you own that are used for a similar purpose?
2.  Have all of those vehicles been in constant use since the accident?
3.  How quickly did you rent a replacement vehicle?
4.  Is the vehicle specialized and do you have customers that exclusively used the lost vehicle?

   As you can see, there are plenty of questions that go into determining lost income / revenue.  The bottom line is that it is your burden to prove the amount of your loss, and the adjuster's job to provide an alternate adjustment or approve your evidence of the loss amount.  I don't want to leave you hanging, but it is difficult to provide you with advanced help based on basic information.  Tax records are the easiest way to prove income, simply do the math to come up with your daily, weekly, monthly income.  If you have slow times and busy times, make sure you account for that by providing evidence of it.  If I were proving up lost income, I would show records reflecting that all my vehicles were used, then I would show what my hourly profit is on the use of any particular vehicle by showing my pricing and overhead itemized.  Then, I would simply demand payment for the amount of hours I had lost.  Additionally, depending on the type of business, you may have lost some potential customers which could be considered lost of future income potential.  

Frankly, most adjusters try and simplify cases like this and probably aren't aware of all the types of damages you could potentially prove in front of a jury (which is the ultimate question).

I hope this helps.