Do you know when you’re entitled to a replacement vehicle and what to do if the insurance company makes problems?

What is a replacement vehicle and why are you entitled to one?

A replacement vehicle is a car that you can use when your own car is out of service due to an accident that was not your fault. In order for you to continue to function, go to work, drive your children or run your business, the law and case law allow the cost of hiring a replacement vehicle to be covered by the at-fault driver’s insurance company.

You are entitled to a replacement vehicle if:

• your car has been damaged in a road accident,
• the person at fault has compulsory liability insurance (which is almost always the case),
• the car is being repaired or is completely unroadworthy,
• the costs are reasonable and proportionate (based on local prices).

The injured party does not have to prove that he or she “could not live” without the replacement vehicle. On the contrary, the cost of a replacement vehicle is standard, and courts routinely recognize that a car is a necessity, not a luxury, for most people.

The insurance company refused to pay, we changed it

To make the process clear, we use a real story from our practice. Our client, Mr Mark, is a small businessman who uses his car daily to deliver goods and service his customers. When his car was struck by a driver who failed to yield the right of way, Marek was injured. His car ended up in the workshop for three weeks. Marek immediately rented a replacement vehicle so he could continue working.

But after the repairs, he was in for a surprise: the insurance company refused to reimburse him for the cost of the replacement vehicle, saying that he “should have done things differently” and that the rental car was unnecessarily expensive.

Marek contacted Affordable Advocate and we evaluated his case, prepared an expert opinion, prepared a complete claim for a replacement vehicle and negotiated with the insurance company, which subsequently paid 100% of the costs, including interest for delay.

We will continue to use his story as an example of the right course of action.

How long you can use the replacement vehicle

The length of time you rent a replacement vehicle should always be appropriate to the situation. Usually it lasts for the duration of the vehicle repair, as it did for Mark who needed the car for the entire time his car was in the workshop.

If the car is determined to be a total loss, the claim is often longer because the injured party must wait for the damage settlement to be completed and the insurance claim to be paid.

It is also possible to draw onthe lease until the injured party has purchased a new car, if this is reasonable and proportionate in the circumstances of the case.

In practice, however, insurers often refuse to reimburse part of the days, citing the allegedly unreasonable repair time or claiming that the victim could have used public transport. However, such arguments are usually not firmly based in law and, if the hire of a replacement vehicle is justified and documented, it should be fully reimbursed.

How much a replacement vehicle can cost and what the insurance company must reimburse

The cost of a replacement vehicle is usually between £600-1,500 per day depending on the type of car. The insurer is obliged to pay for the daily rental fee (up to the usual price), car insurance, reasonable mileage (for some rental companies), and the delivery or pick-up fee (if reasonable and usual).

A common problem, however, is that the insurance company cuts the price per day, only honors part of the days, claims there was a cheaper solution, or requires a “certified rental company”. Yet often their claims have no support in statute or case law.

The right way to avoid losing your claim

If you find yourself in a situation where you need a replacement vehicle, follow this advice, which is how we successfully recovered compensation for Mark.

The first step is always to choose the right replacement vehicle – it should be of the same category as the one that was damaged and the price should be appropriate to local conditions. Of course, it is also important that all costs are properly documented, for example with invoices or rental agreements.

It is equally important to keep complete documentation, i.e. not only the rental contract itself, but also the service contract, the report of handing over the car for repair, invoices, proof of payment and all correspondence with the insurance company.

The injured party should also not prejudge what the insurance company will or will not “accept”. In practice, if you really need the car, you have every right to borrow it and then claim the costs.

Finally – once the insurance company starts making trouble, it’s time to get a lawyer involved. Our attorney will ensure that the claim is properly quantified, prevent unwarranted reductions, take over communication with the insurance company, and if necessary, calculate and recover interest on late fees.

The insurance company only wanted to reimburse Mark for 9 days of rent. It claimed that “the repair could have taken less time” and the price was too high. However, after our intervention, we were able to prove that the length of the repair was reasonable. We also documented that the price was in line with the market and pointed out errors in the insurance company’s claims process. As a result, the insurance company paid an additional CZK 17,800 and apologised for the error.

When do you need a lawyer

Contact us immediately if:

• the insurance company refuses to pay for a replacement vehicle,
• reduced the number of days or the price,
• refers to “unreasonableness”,
• claims you should have used public transportation,
• insists that you should have hired a cheaper car,
• ignores your submissions.

We will represent you against the insurance company, quantify the claim, write a professional statement and ensure that you are paid everything you are legally entitled to.

A replacement vehicle is not an “excess”.It is typically a deductible item of damages if the rental is reasonable, appropriate and properly documented. If the insurance company refuses to pay, that’s their problem, not yours. As in the case of our client Mark, we can help you get everything you are entitled to.

Summary

A claim for a replacement vehicle arises whenever an injured person’s car is inoperable as a result of an accident that was not his or her fault and he or she needs to continue to function in the ordinary course of life or business; in such a case, the at-fault party’s insurance company should pay the reasonable and expedient cost of a rental car of a similar category. The replacement vehicle may be used throughout the repair period, in a total loss case until the insurance claim is paid or a new car is purchased, and the courts have long held that the injured party need not accept a significantly inferior or inadequate replacement. However, insurance companies often reduce or deny claims – as in the case of our client Mark, whom we helped fight for full recovery with interest after the insurance company claimed he should have “done things differently”. The key is to choose an adequate vehicle correctly, keep all documentation and not be put off by what the insurer claims is “unreasonable” in advance. If they start cutting days, price, referring you to public transport or failing to communicate, it is advisable to engage a solicitor – they will provide a professional quotation of the claim, represent you to the insurer and make sure you pay anything you are legally entitled to. A replacement vehicle is definitely not an extra, but a normal and protected claim to compensate the injured party for the limitations caused by the accident.