How to Claim Loss-of-Use or Rental Car Expenses After an Accident When the At-Fault Driver’s Policy Limits Are Exhausted
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
In Nevada, you may face out-of-pocket rental or loss-of-use expenses when the at-fault driver’s liability insurer has paid its policy limits. However, Nevada law and common law principles provide several avenues to recover these costs:
1. Review Your Own Insurance Coverage
- Rental Reimbursement Coverage: If you purchased optional rental reimbursement under your collision policy, file a claim with your own insurer. Nevada’s rental reimbursement provisions are found in NRS 690B.060. See: NRS 690B.060.
- Collision Coverage: You can also use collision coverage to repair or replace your vehicle. After paying your deductible, your insurer will subrogate against the at-fault insurer for any amounts it pays on your behalf.
- Uninsured Motorist Property Damage (UMPD): If you bought UMPD, you may recover property damage, including reasonable rental fees up to your UMPD limit. See: NRS 690B.020.
2. Assert a Tort Claim for Loss-of-Use
Even if the at-fault driver’s liability policy is exhausted, you can sue that driver personally for additional damages. Nevada courts recognize loss-of-use as recoverable damages when you show reasonable rental costs in lieu of vehicle use (Allstate Ins. Co. v. Squires, 101 Nev. 599, 708 P.2d 710 (1985)). To pursue this claim:
- File a negligence lawsuit against the at-fault driver in the appropriate Nevada district court.
- Prove your rental expenses were reasonable and necessary to mitigate your losses.
- Obtain a judgment for loss-of-use and pursue collection against the driver’s personal assets.
3. Explore a Bad Faith Claim Against the Insurer
If the at-fault insurer unreasonably denied or delayed rental reimbursement before exhausting policy limits, you may have a bad faith claim under NRS 686A.310. See: NRS 686A.310. A successful bad faith claim can recover extra-contractual damages.
Helpful Hints
- Keep all rental invoices and repair orders.
- Notify both insurers in writing about your rental needs immediately.
- Review your declarations page to confirm optional rental or UMPD coverage.
- Mitigate your damages by renting a comparable vehicle only for the repair period.
- Consult an attorney early if you plan to sue for loss-of-use or pursue a bad faith claim.