UM/Rental Car Cov'g Question.

[cador]

My interpretation: The cost of renting a temporary substitute vehicle is covered by Uninsured Motorists.

See Page 4:

""Property damage" means injury to or "loss" of use or destruction of: a. A "covered auto";"

The accident victim is certainly entitled to monetary compensation for loss of use from the at-fault driver so it's recoverable from the Uninsured Motorists coverage.

How does one determine how much money "loss of use" is worth? By the cost of a temporary substitute vehicle that allows normal business to continue or the cost of losing business as a result of not having use of the vehicle.

Which would I, an adjuster, prefer to pay? The lesser of the two, of course.

Cador, if you can't convince the adjuster, go up the food chain to management.

Great info, I agree! I'm sending Adj email now with the definition highlighted. Be interesting to see her answer, I'll update.

 

[InsCommentary]

What AdjusterJack said about the "PD" definition. From the TDOI:

https://www.tdi.texas.gov/pubs/consumer/cb020.html

Will the insurance company pay for a rental car?
If your accident was caused by another driver, the other driver's insurance company will pay for you to rent a car. You can keep the rental car for the time the company believes is reasonable for your car to be repaired. The company will base the amount of time on the estimated number of hours of labor. Be sure to let the adjuster know about any delays in getting your car fixed. The company might extend the rental if there are delays because the repair shop had to order parts or found more damage.

If the company totals your car, it will probably stop paying for the rental a few days after telling you.

Your insurance company will pay for a rental car if:

• you have uninsured/underinsured motorist coverage and the driver who caused the accident didn't have insurance or enough insurance.
• you have uninsured/underinsured motorist coverage and the accident was a hit-and-run.
• you have rental reimbursement coverage and were in an accident.
• you have comprehensive coverage and your car is stolen.

Your insurance company will pay for a rental car only for the time it believes is reasonable to repair or replace your car. It will pay a set amount each day and only up to your policy's rental coverage dollar limits.

 

[cador]

What AdjusterJack said about the "PD" definition. From the TDOI:

https://www.tdi.texas.gov/pubs/consumer/cb020.html

Will the insurance company pay for a rental car?
If your accident was caused by another driver, the other driver's insurance company will pay for you to rent a car. You can keep the rental car for the time the company believes is reasonable for your car to be repaired. The company will base the amount of time on the estimated number of hours of labor. Be sure to let the adjuster know about any delays in getting your car fixed. The company might extend the rental if there are delays because the repair shop had to order parts or found more damage.

If the company totals your car, it will probably stop paying for the rental a few days after telling you.

Your insurance company will pay for a rental car if:

• you have uninsured/underinsured motorist coverage and the driver who caused the accident didn't have insurance or enough insurance.
• you have uninsured/underinsured motorist coverage and the accident was a hit-and-run.
• you have rental reimbursement coverage and were in an accident.
• you have comprehensive coverage and your car is stolen.

Your insurance company will pay for a rental car only for the time it believes is reasonable to repair or replace your car. It will pay a set amount each day and only up to your policy's rental coverage dollar limits.

Thank you, right from the TDI site, that's great!

 

[fed up]

This is a commercial claim against an uninsured driver. I can't see any coverage in the commercial policy for rental reimbursement. Regular personal lines coverage might, might not cover this but if it is not mandated by the state the request for rental can be turned down

 

[adjusterjack]

This is a commercial claim against an uninsured driver. I can't see any coverage in the commercial policy for rental reimbursement.

Doesn't have to be.

The UM insuring agreement, again, is:

"We will pay damages which an "insured" is legally entitled to recover from the owner or operator of an "uninsured motor vehicle" because of "bodily injury" sustained by an "insured" or "property damage" caused by an "accident"."

"Property damage" means injury to or "loss" of use or destruction of: a. A "covered auto"

What if the insured had no collision coverage on the covered vehicle? Would you say he's not entitled to be paid for the collision damage by the at-fault driver?

 

[cador]

Doesn't have to be.

The UM insuring agreement, again, is:

"We will pay damages which an "insured" is legally entitled to recover from the owner or operator of an "uninsured motor vehicle" because of "bodily injury" sustained by an "insured" or "property damage" caused by an "accident"."

"Property damage" means injury to or "loss" of use or destruction of: a. A "covered auto"

What if the insured had no collision coverage on the covered vehicle? Would you say he's not entitled to be paid for the collision damage by the at-fault driver?

Thx for your info, I knew they had cov'g. It took a couple of emails with the policy wording attached, and the TDI link, kept telling me "mgmt is reviewing it". I think the main issue here is they are a La based carrier (she was the Tx adj) and La doesn't have UM PD (just BI).
Simple deal to read the policy and know the coverages in your state, but we got it paid.

Thx for the confirmation, to both you and Ins Commentary.