Auto Insurance Claims: Loss of Use, rental car agency, chevy cobalt

Question
I was recently involved in a car accident (other person was at fault).  In the state of California, am I automatically entitled to a "loss of use" payment for my vehicle (BMW 330i) whether or not I decide to get a rental?  Or do insurance companies only pay that if I rent a car?  How does "loss of use" work?  Please advise.  Thanks!

Answer
Hi Becky,

The term loss of use is sort of a catch all phrase. You are entitled to either a comparable rental car during the repairs or a direct payment for loss of use. The term comparable vehicle does not mean that they have to rent you a BMW. Comparable means the same function and utility. So if your BMW has 4 doors and can carry 5 people, then they have to rent you a 4 door car that can carry 5 people which could be a chevy cobalt. In some cases you can argue for a slightly better vehicle.

If you take the direct payment instead of a rental car it will be a lower daily rate than the rental car would cost. This is because the rental car price includes expenses, facilities & profit to the rental car agency. You will likely get around $20.00 per day for a direct payment.

Remember you are entitled either to a rental car or direct payment for loss of use but not both.

I hope this helps
Richard Hixenbaugh