Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney about your specific situation.
Detailed Answer
1. Understand What “Loss-of-Use” Means
Loss-of-use compensates you for the value of not having your vehicle while it’s in the repair shop. In New Mexico, you must show an actual economic loss. Courts will require:
- A daily or hourly rental rate
- The total number of days your car was out of service
- Proof that you could not use another vehicle
2. Document Your Rental Expenses
Whether you rent from a national chain or a local lot, save every invoice and contract. The at-fault driver’s insurer will audit each charge. Your records should include:
- Rental agreement showing vehicle type and daily rate
- Proof of payment (credit card slip or receipt)
- Dates your rental began and ended
3. File a Direct Action If You Have a Judgment
If you sue the at-fault driver and obtain a judgment, New Mexico law allows a direct action against the insurer once the judgment is final. See NMSA 1978, Sec. 58-21-4 (direct action statute). This lets you enforce the judgment against remaining policy limits.
4. Use Your Own Rental Reimbursement Coverage
Many New Mexico auto policies offer optional rental reimbursement. If the at-fault driver’s limits are gone, submit your invoice to your own insurer. Check your declarations page for limits (often $20–$50 per day, up to a set maximum).
5. Consider Underinsured Motorist (UIM) Benefits
If you carry UIM coverage, you may claim loss-of-use or reasonable rental costs under that policy. You must notify your carrier promptly. Review your policy’s UIM provisions for deadlines and documentation requirements.
6. Negotiate a Global Settlement
If multiple policies apply (e.g., at-fault limits, your rental coverage, UIM), negotiate a single settlement that wraps them together. This can minimize delays and reduce attorney fees.
7. Litigation Against the At-Fault Driver’s Personal Assets
When insurance fails, you can sue the driver personally for the shortfall. You must name the individual as a defendant, gather personal asset information (wages, property), and obtain a supplemental judgment if you succeed.
Helpful Hints
- Always document repair timelines with shop estimates.
- Obtain daily logs showing when your vehicle was unusable.
- Ask your rental agency about damage waivers to avoid additional liability.
- Review your declarations page for every policy involved.
- Keep copies of all correspondence with insurers in one file.
- Check for deadlines: many policies require notice within 30 days.
- Work with an attorney to draft a demand package that aggregates all claims.