Detailed Answer
When an at-fault driver’s policy limits run out in Wisconsin, you still have options to recover loss-of-use or rental car expenses. You can pursue coverage under your own policy or seek payment directly from the at-fault driver. Below are the key steps and legal bases:
1. Check Your First-Party Rental Reimbursement or Loss-of-Use Coverage
Most auto policies offer an optional rental reimbursement or loss-of-use endorsement. It covers reasonable rental costs or the fair market value of not having a vehicle while repairs occur. Review your declarations page to see if you have this endorsement and check its daily and total limits.
2. Use Underinsured Motorist Property Damage (UMPD) Coverage
Wisconsin allows policyholders to purchase Underinsured Motorist Property Damage coverage. If you elected UMPD, your insurer must pay “reasonable expenses” for loss of use when the at-fault driver’s insurer pays out its limits. See Wis. Stat. § 632.32(1)(c) (https://docs.legis.wisconsin.gov/statutes/statutes/632/32) for the statutory language. File a UMPD claim under your own policy and submit invoices or rental agreements proving your costs.
3. Direct Lawsuit Against the At-Fault Driver
If you lack rental reimbursement or UMPD, you can sue the at-fault driver personally for loss-of-use damages. Wisconsin law allows you to recover the reasonable rental value of a comparable vehicle or documented out-of-pocket rental costs. You must file in small claims court if damages are under $10,000. The statute of limitations for property damage is three years from the accident date per Wis. Stat. § 893.54 (https://docs.legis.wisconsin.gov/statutes/statutes/893/54).
4. Document All Expenses and Communication
Gather all rental bills, invoices, repair estimates, and correspondence with insurers. Submit them promptly to your insurer (for first-party claims) or directly to the at-fault driver’s insurer. A clear record speeds up approval and avoids disputes over reasonableness.
Disclaimer
This information is for educational purposes only and does not constitute legal advice. Consult a licensed Wisconsin attorney to discuss your specific situation before taking legal action.
Helpful Hints
- Review your policy declarations page for rental or loss-of-use endorsements.
- Consider UMPD coverage at policy renewal if you lack rental reimbursement.
- Keep detailed logs of rental dates, rates, and vehicle type.
- Send written demand letters before filing suit to encourage settlement.
- Note the three-year deadline under Wis. Stat. § 893.54 for property damage claims.
- Consult an attorney if the other party disputes your rental charges.