How can someone claim loss-of-use or rental car expenses after an accident in Virginia when the at-fault driver’s policy limits are exhausted

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Disclaimer: This information is for educational purposes only and does not constitute legal advice.

Detailed Answer

After a collision in Virginia, the at-fault driver’s liability policy pays for your property damage up to its limit. Once that limit depletes, you can still seek reimbursement for rental expenses or loss-of-use charges through these avenues:

1. Your Own Underinsured/Uninsured Motorist Property Damage (UIM/UMPD) Coverage

Under Virginia Code §38.2-2206.1, insurers must offer uninsured motorist property damage (UMPD) coverage, and they may offer underinsured motorist property damage (UIMPD) as an option. If you purchased UIM/UMPD, file a claim with your insurer for your rental or loss-of-use costs up to your policy limits. Va. Code §38.2-2206.1.

2. Rental Reimbursement or Loss-of-Use Endorsement on Your Policy

Virginia Code §38.2-2206.2 requires insurers to offer optional rental reimbursement and loss-of-use coverage. If you added this endorsement, your insurer pays reasonable rental or loss-of-use charges up to your selected limit—regardless of the at-fault driver’s exhausted coverage. Va. Code §38.2-2206.2.

3. Direct Claim Against the At-Fault Driver (Supplemental Recovery)

If you lack UIM/UMPD or rental endorsement, you can negotiate a supplemental settlement with the at-fault driver’s insurer. Present documented rental bills and a loss-of-use calculation—typically a daily rate multiplied by days your vehicle was in repair. The insurer may pay a reasonable rate but will not exceed the policy limit.

4. Small Claims Court or Civil Suit

If the insurer refuses to cover your supplemental claim, you can sue the at-fault driver in small claims or general district court for the unpaid rental or loss-of-use balance. Note that if the driver has no assets, collection may prove difficult.

Helpful Hints

  • Review your policy declarations to confirm UIM/UMPD and rental reimbursement limits.
  • Track rental receipts, invoices, and repair shop dates to document loss-of-use days.
  • Calculate loss-of-use at a reasonable market rental rate; retain quotes or published rates.
  • Notify both insurers (the at-fault driver’s and your own) promptly and in writing.
  • Consider consulting a Virginia-licensed attorney if insurers deny coverage or undervalue your claim.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.