Disclaimer: This article is for general information only and does not constitute legal advice. Consult a licensed attorney in Rhode Island for advice specific to your situation.
Detailed Answer
1. What Is a Loss-of-Use Claim?
In Rhode Island, “loss-of-use” refers to the value of having to rent a replacement vehicle while your car is unavailable due to accident damage. It is a component of property damage, separate from medical expenses or lost wages.
2. First, Seek Payment from the At-Fault Driver’s Insurer
Under Rhode Island law, an injured party may demand reimbursement for reasonable rental costs directly from the at-fault driver’s liability carrier. Insurers often handle loss-of-use as part of the property damage claim.
If the insurer pays up to the policy limit but not more, you face a shortfall. The insurer’s obligation ends at the limit specified in the liability policy.
3. Suing for the Balance in Small Claims Court
If the insurer has exhausted coverage, you can file in Rhode Island Small Claims Court to recover the unpaid portion of your rental charges. Courts generally allow you to prove lost-use damages by submitting:
- A copy of the rental agreement with daily rates;
- Invoices showing dates and total cost;
- Proof your car was undrivable, such as repair shop estimates or photographs.
There is no specific statute capping small claims at a lower amount, but Rhode Island Small Claims Court generally handles claims up to $5,000. See Rhode Island Judiciary – Small Claims.
4. Using Your Own Rental Reimbursement Coverage
If you purchased rental reimbursement under your own auto policy, you can file a claim with your insurer for the same rental period. Rental reimbursement is an optional endorsement that typically covers reasonable daily rental charges up to your policy limit.
Policy language varies. Check your declarations page or contact your insurer to confirm limits and per-day caps.
5. Exploring Additional Coverage Options
Consider these avenues if both the at-fault policy and your own rental endorsement fall short:
- Credit-card coverage: Some credit cards offer rental car loss-of-use benefits when you use them to pay the rental bill.
- Umbrella policy: If you carry a personal umbrella policy, it may cover excess liability once auto limits are exhausted.
- Third-party financing: In limited circumstances, a car rental company will defer payment while you pursue an insurer or court for reimbursement.
6. Key Rhode Island Statutes
While Rhode Island’s statutes do not explicitly define loss-of-use, you rely on general property damage principles and procedural rules for small claims. For auto insurance requirements and PIP (Personal Injury Protection), see R.I. Gen. Laws § 31-31-4. PIP covers medical and wage losses but does not automatically cover rental costs unless you purchased that endorsement.
Helpful Hints
- Document every day your vehicle is in the shop to justify each rental-day charge.
- Keep a detailed file: all invoices, repair estimates, correspondence with insurers.
- Compare rental rates locally to ensure you claim “reasonable” expenses.
- Act quickly: Rhode Island’s statute of limitations for property damage claims is three years (R.I. Gen. Laws § 9-1-13).
- Consult your own auto policy to determine if you already paid for rental reimbursement coverage.
- If the at-fault driver is uninsured or underinsured, your uninsured motorist policy may offer limited coverage for reasonable rental costs.