Detailed Answer
After a crash, rental reimbursement coverage under your insurance policy often expires once you reach the policy-specified day limit or dollar maximum. Under New Mexico law, you still have several paths to arrange transportation while your vehicle is in the shop or awaiting settlement. Each option carries its own requirements and deadlines.
1. File a Loss-of-Use Claim with the At-Fault Insurer
New Mexico law treats reasonable rental expenses as a compensable damage known as “loss of use.” Under NMSA 1978, § 66-5-221, you may demand reimbursement for the reasonable market rate of comparable transportation from the at-fault driver’s insurer. Start this process by:
- Documenting daily rental invoices or alternative transport receipts.
- Submitting a written demand letter to the at-fault insurer referencing NMSA 1978, § 66-5-221 (link to statute).
- Keeping copies of all correspondence, invoices and vehicle repair estimates.
2. Negotiate a Direct-Bill Rental Extension
Many rental companies will extend your rental contract if the at-fault insurer agrees to direct billing. To pursue this:
- Contact the rental agency to request a billing guarantee from the at-fault insurer.
- Provide the insurer with an estimated repair timeline and daily rate caps.
- Obtain written confirmation of the billing agreement before the original rental period expires.
3. Use Alternative Transportation Services
If a rental extension is not possible, consider these alternatives:
- Car-sharing or Ridesharing: Services like Zipcar, Lyft or Uber. Track your expenses to include in your loss-of-use claim.
- Public Transit: Bus or rail fares can be submitted as losses under § 66-5-221, provided they’re reasonable and necessary.
- Court-Ordered Hire: In small claims court, you may recover the reasonable cost of these services if the insurer refuses payment.
4. Borrow or Rent Directly Using Other Coverage
Check whether:
- Credit Card Benefits: Some cards offer collision and loss protection for rentals booked on the card.
- Secondary Auto Policies: A spouse’s or parent’s policy may include rental reimbursement that can kick in.
- Roadside Assistance Plans: Certain memberships provide short-term loaner cars.
5. Pursue a Small Claims Action for Loss-of-Use
If the at-fault insurer denies or unduly delays your loss-of-use claim, you can file in New Mexico’s small claims court (up to $10,000). You will need:
- Repair shop invoices and timelines.
- Receipts for all transportation costs.
- Correspondence demonstrating your claim to the insurer.
Helpful Hints
- Act quickly. Send your loss-of-use demand within 30 days of the crash.
- Keep detailed records. Photos of damage dates, repair estimates and all receipts strengthen your claim.
- Follow up in writing. Emails and certified letters create a paper trail.
- Compare rates. Document the market rate for similar car models to support “reasonable” cost arguments.
- Consult consumer guides. New Mexico’s Office of Superintendent of Insurance offers free resources on auto claims.
Disclaimer: This article is for general legal information only. It does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.