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What are Loss of Use Damages?

If you find yourself the victim of a car accident, you may be in a position to claim what are known as loss of use damages. The reality is that there is oftentimes a considerable amount of confusion among car accident victims of what exactly are loss of use damages. In this article, we provide an overview about these types of losses in the aftermath of a crash. A Houston car accident attorney can help you determine what damages may be applicable in your case. They may also be able to assist if you decide to file a loss of use claim in the aftermath of the incident.

Definition of Loss of Use Damages

In an automobile accident case, loss of use damages refer to compensation that is awarded to a person or entity when they are unable to use their property or vehicle due to damage caused by another party. In basic terms, loss of use damages cover the costs associated with not being able to use your property while it’s being repaired or replaced. To be eligible for these damages, the victim or their attorney must file a loss of use claim.

Types of Loss of Use Damages

There are two main types of loss of use damages: direct and indirect. Direct damages refer to the actual cost of renting a replacement vehicle or property while yours is being repaired or replaced. Indirect damages, on the other hand, refer to other expenses you may incur as a result of not being able to use your property, such as lost income or additional transportation costs.

Direct damages are relatively easy to calculate, as they are based on the cost of the rental property or vehicle. Indirect damages can be more difficult to quantify, as they may depend on factors that include:

  • Nature of the damage
  • Length of time the property will be out of commission
  • Nature of your work or other activities

How Loss of Use Damages are Calculated

The amount of compensation awarded for loss of use damages following a car accident will depend on a number of factors that include:

  • Type and extent of the damage
  • Length of time the property will be out of commission
  • Cost of renting a replacement property or vehicle.

Who is Eligible for Loss of Use Damages Following a Car Accident?

Anyone whose property has been damaged or destroyed due to the actions of another party may be eligible for loss of use damages. This includes both individuals and businesses.

For example, if your car is damaged in an accident caused by another driver, you may be able to recover the cost of a rental car while your car is being repaired. If your home or business property is damaged by a fire or other disaster caused by another party, you may be able to recover the cost of renting a temporary property while your property is being repaired or rebuilt.

Filing a Loss of Use Claim to Recover Damages

To file a loss of use claim, you’ll need to document the damage to your property and provide evidence of any expenses you’ve incurred as a result of a Texas car accident. This may include:

  • Rental car receipts
  • Alternative transportation costs
  • Lost income statements.

It is important to keep accurate records of all expenses incurred as a result of the loss of use of your property, including your vehicle.

What Other Forms of Compensation May Be Available?

Depending on the circumstances of your accident, it’s possible you will have multiple actions to consider. In addition to the possibility of a loss of use claim, you and your lawyer may discuss:

  • Lost wages & diminished earning opportunity claims: If you suffered injuries causing you to be unable to work or the vehicle damaged in the crash was your work vehicle, you may be able to file a claim for lost wages or diminished earning opportunity.
  • Diminished value claim: If you were planning to sell your vehicle before it was damaged in a collision, you may be able to file a diminished value claim. After the accident, it’s likely that the vehicle will not be worth as much money. This form of claim aims to offer compensation for this loss in value after a collision.
  • Personal injury claim: If you or a passenger suffered harm in a collision due to the negligent actions of another party, you may be able to file a personal injury claim for related damages.

Time Limits for Filing a Loss of Use Claim or Lawsuit

It is important to note that there are time limits for filing a claim or lawsuit for loss of use damages. In most cases, you’ll need to file a claim within a certain period of time after a car accident, so it’s important to act quickly to protect your rights. In the state of Texas, you need to file a lawsuit arising out of a car accident within two years of the wreck.

Protect Your Legal Rights Following a Texas Car Accident

The first step to take following a car accident that may or may not include loss of use damages is to schedule an initial consultation and case evaluation with a member of the legal team at The Doan Law Firm. You can schedule a no-obligation and no-cost initial appointment with a Doan Law Firm Houston personal injury lawyer by calling (800) 349-0000 any time of the day or night.

Doan Law Firm Attorney Fee Guarantee

The Doan Law Firm will never charge an attorney fee unless we win your case for you. Our Houston car accident lawyer team will fight tirelessly to obtain justice, accountability, and the compensation you deserve in your case. Contact us today to schedule your free initial consultation.

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