Detailed Answer
When an at-fault driver’s policy has paid up to its limits in Oregon, you still have options to recover loss-of-use or rental car expenses. Oregon law recognizes both insurance coverages and direct claims against the at-fault party. Below is an overview of each path.
1. Use Your Own Rental Reimbursement or Direct Compensation Property Damage (DCPD) Coverage
If you purchased rental reimbursement coverage or DCPD under your own policy, you can file a claim with your insurer. DCPD is mandatory for insurers writing personal auto policies in Oregon (ORS 742.520). Rental reimbursement, however, is optional. Check your declarations page for limits and per-day caps, then submit invoices and a written request documenting the loss-of-use period.
2. File an Underinsured Motorist (UIM) Claim
Underinsured motorist coverage can bridge the gap when the at-fault driver’s limits are exhausted. Oregon statutes require insurers to offer UIM (ORS 742.506). If you elected UIM and the at-fault driver’s limit was insufficient, you may recover additional property damage, including reasonable rental expenses or loss-of-use.
3. Sue the At-Fault Driver for Excess Damages
You can pursue the driver personally for amounts beyond the policy limits. In Oregon, you may file a small claims action (up to $10,000) in justice court or a larger claim in circuit court. To succeed, you’ll need:
- Documentation of the insurer’s payment and proof of policy limits.
- A rental invoice or a market-rate quote showing the period you lacked transportation.
- Evidence the at-fault driver had assets or income sufficient to satisfy any judgment.
4. Document and Present Reasonable Loss-of-Use
Oregon common law allows recovery for loss-of-use as a component of property damage. Keep detailed records of:
- Daily rental rates and actual rental days.
- Alternative transportation costs (e.g., ride-shares or public transit if used).
- Communication logs with insurers and the at-fault driver.
Helpful Hints
- Review your insurance declarations page immediately for rental or UIM coverage details.
- Provide prompt written notice to all insurers to avoid coverage denials.
- Keep all invoices, contracts, and email correspondence.
- Obtain a written rental rate affidavit if the insurer challenges “reasonable” costs.
- Consult with an attorney before filing suit to understand court rules and deadlines.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. For guidance tailored to your situation, consult a qualified attorney.