22. Someone rear ends your nice new 2002 Volkswagen Jetta and after it gets appraised, it is determined it will take 3 days for a body shop to repair it. You need a rental car. What are you owed by the adverse insurance company?
From Quiz Your USA Auto Insurance Policy: Things To Know
Answer: Loss of Use
No insurance companies have to set you up with a rental agency. This is a wide misconception. Most companies do this however and have contracts with companies such as Enterprise. However, all that is owed is the lost time that it will take while your car is being repaired. This is calculated by the amount of labor hours on the estimate by the number of hours that the shop is allotted to working on the car per day. In other words, if there were 35 labor hours (body and paint) and the shop works on each car for 5 hours a day, this would be 7 days loss of use or LOU. The company should pay you for a comparable vehicle for those days (and shops don't work on weekends, so that is 2 extra days), making it 9 days. If they pay you $30 a day for 9 days, for instance, you get a separate check for $270, besides the check to fix your car. LOU is also under your property damage coverage.