When your car is involved in an accident, the inconvenience of being without a vehicle can add stress to an already difficult situation. This is where the loss of use benefit in car insurance comes into play. Understanding how to claim this benefit can save you time and money. In this article, we’ll explore what loss of use coverage is, how it works, and what you need to know to make the most of this valuable insurance benefit.
What is loss of use in car insurance?
Loss of use is a car insurance benefit that covers the cost of alternative transportation when your vehicle is unavailable due to a covered accident. This coverage only applies if the insured party, in this case, you, are not at fault. If your car is being repaired or replaced after an accident that you did not cause, this coverage can reimburse you for expenses such as renting a car or even public transportation.
This coverage is particularly valuable because it ensures you can maintain your daily routine without significant disruption. The amount and duration of the coverage can vary, and the rates that you should know before claiming for loss of use are as follows:
Compensation rate for loss of use of a vehicle
- For private cars with up to 7 seats, the minimum rate is THB 500 per day.
- For public transport vehicles with up to 7 seats, the minimum rate is THB 700 per day.
- For cars with more than 7 seats, the minimum rate is THB 1,000 per day.
- For other types of vehicles, such as motorcycles, rates will be determined on a case-by-case basis, based on provided evidence and mutual agreement.
Now that you know the daily compensation rates for loss of use of your vehicle, the next step is to understand the required documents and the process for making a claim. Let’s dive into the details in the next section.
How do I claim compensation for loss of use of a vehicle?
If you’re involved in an accident and need to claim compensation for the loss of use of your vehicle, Roojai offers a straightforward process:
- Reach out to the at-fault party’s insurance company to confirm your claim for compensation while your vehicle is being repaired.
- Once the insurance company informs you of the necessary documents, submit them as soon as possible.
- The insurance company will conduct an investigation. They may contact you to negotiate the compensation amount.
- After all details are agreed upon, it typically takes about 7 days to process the claim. You will then receive compensation for the loss of use of your vehicle.
Documents for claiming loss of use compensation
To file a claim for loss of use of your vehicle, you will need to prepare and submit the following documents:
- Damage report for vehicles involved in accidents
- Property damage certificate (claim form)
- Copy of vehicle registration book
- Copy of car insurance policy schedule
- Copy of driving licence
- Copy of ID card
- Receipt for car rental or other transportation expenses incurred
- Photo of the car being repaired
- Photos of damage
- Compensation claim letter for loss of use
- Copy of bank account statement
The other party does not have insurance. Can I still claim for loss of use of the car?
If the other party does not have insurance coverage, you can still claim compensation for the loss of use of your car directly from them. It is recommended to have a clearly written letter or form that details the amount the other party will pay for the damages and the timeframe for payment. This document will serve as evidence if the agreed compensation is not paid.
Template for writing a compensation claim letter for loss of use
A compensation claim letter requests compensation from an insurance company. There is no specific or official form required so you can create it yourself, but make sure it includes all the relevant information. You can refer to the sample template below:
Date:
Subject: Request for compensation for loss of use of the vehicle during repairs
To: Claims Department, (Name of the at-fault party’s insurance company)
Attachments: (Attach related documents)
I, (Full name of the vehicle owner), am the owner of a (Vehicle make) (Vehicle model) with registration number (Registration number). My vehicle was hit by a (Vehicle make of at-fault party) (Vehicle model of at-fault party) with the registration number (Registration number of at-fault party) at (Location of damage on the vehicle). The accident occurred at (Location of the accident). As a result, my vehicle sustained the following damages: (Describe the damages to the vehicle).
I took my vehicle to (Name and location of the repair shop) on (Date of repair start) and it was repaired on (Date of repair completion), totalling (Number of days) days. I need the vehicle for (Purpose of vehicle use before repair).
Therefore, I request the following compensation:
Loss of use/rental car fee: THB (Amount) per day for (Number of days) days, totalling THB (Amount).
Depreciation of the vehicle: THB (Amount) due to (Describe the damage and compare the current market price of the vehicle), totalling THB (Amount) as detailed in the attached documents.
Therefore, I authorise (Name of the authorised person, if any) to handle the claim for loss of use and vehicle depreciation on my behalf until completion.
Sincerely,
(Signature)
(Printed name)
(Vehicle registration number)
(Contact phone number)
Which car insurance policy provides direct loss of benefits coverage?
Insurance plans that offer loss of use coverage for your vehicle include type 1 to type 3 car insurance. Simply put, regardless of your insurance plan, you are entitled to claim compensation for the loss of use of your car. You can make this claim starting from the day the accident occurred.
Can I notify the Office of the Insurance Commission to claim additional compensation for the loss of use of the vehicle?
Yes, you can notify the Office of the Insurance Commission (OIC) to claim additional compensation for the loss of use of your vehicle if the repair period exceeds what the insurance company considers reasonable. Here’s how:
- Contact the Office of the Insurance Commission at 02-515-3999 or 1186.
- It will take approximately 10-15 days for the OIC to contact the insurance company and negotiate on your behalf.
- The OIC will inform you about the minimum compensation rates, which are 500, 700, or 1,000 baht, depending on the insurance company. The OIC’s role is to mediate the process.
- The actual compensation you receive will depend on the insurance company and the outcome of the negotiations. The OIC cannot force or determine the payment amount.
Hopefully, this information will help you better understand how to claim compensation for the loss of use of your car. Whether it’s regarding the claim process, the required documents, or knowing that you can make additional claims if repairs take longer than expected, this knowledge can prevent insured individuals from missing out on valuable benefits.
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Frequently asked questions: loss of use in car insurance
Can I choose my rental car when claiming loss of use compensation?
This depends on the insurance policy and the terms set by the insurance company. It’s best to check with them for specific details.
Roojai policyholders can enjoy our car replacement service, where we will provide a car rental at no additional cost* for the first 15 days and at THB 599/day after 15 days.
*Terms and conditions apply.
Can I claim loss of use compensation if my car is being repaired for maintenance or wear and tear?
No, loss of use coverage typically only applies to situations where your vehicle is unavailable due to a covered accident or incident, not for routine maintenance or wear and tear.
How is the duration of loss of use compensation determined?
The duration is usually based on the time it takes to repair or replace your vehicle. This period is determined by the repair shop and approved by the insurance company.
Definition
| Benefits | Profit, return, and benefit resulting from such as claiming for travel expenses incurred while the car is being repaired. |
| Claim form | A document issued by the insurance company for a car involved in an accident as evidence when taking the car to a repair centre or garage. |
| Compensation | The money that must be paid to compensate for damages or losses to property or persons resulting from a breach or breach of contract, including property that must be returned to the injured party. |
