Keeping Your Motor Running While In The Shop: Your Right to Car Repair-Related Compensation
When your vehicle meets the scrap heap after a collision, you're not only out of wheels but also face challenges with daily routines. But do you qualify for financial aid while your whip's in the shop? This compensation, often referred to as loss of use, is quite the grey area. Let's shine some light on this topic, thanks to a landmark court ruling.
But first, some basics - when your car collapses, the insurance company may foot the bill for repairs or offer a rental whip while the fixes are done.
A court case heard by the Higher Regional Court (OLG) in Oldenburg, Germany, helped clarify things. In the ruling, the court declared that the insurer should pay for the loss of use, specifically for 148 days, even if the driver initially opted for a rental car from the insurer but later returned it voluntarily (Case No.: 1 U 173/22).
Breaking Down the Case
In this incident, a driver caught up in an accident that wasn't their fault faced resistance from their insurer when it came to providing loss of use compensation for 148 days. The reasons given by the insurer: They had covered rental car expenses initially, but since the aggravated party willingly returned the vehicle, the intent to use it wasn't clear. The matter found its way to court.
Justifying the Insurance Coverage
The OLG Oldenburg ruled in favor of the driver. The driver faced numerous hurdles while using the rental car, ranging from harassment by the rental company during work hours to the absence of a trailer hitch. As a result, they had to resort to borrowing vehicles from family members.
After consulting legal experts, they learned they could receive a flat-rate compensation for loss of use instead. Consequently, they returned the rental car. The driver submitted invoices showing they still required a vehicle and had been borrowing one from relatives, proving their ongoing need for a vehicle despite returning the rental car.
Additionally, they provided the repair order immediately after receiving approval. This demonstrated that the driver had the intent to use the vehicle. Since the driver had intended to use the vehicle, the insurer was obligated to pay for the complete loss of use, regardless of the driver returning the rental car later.
The insurer's decision to stop providing loss of use compensation for 148 days was questioned due to the driver renting but needing to return the rental car due to inconvenience. Despite returning the rental car, the driver continued to require a vehicle and proved it by borrowing from relatives. Ultimately, the court ruled that the insurance company must cover the expenses incurred due to the car being unavailable for use during the repair period. The driver's car, a vital means of transportation, was out of commission due to the accident.
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Additional Insights:
- In the German insurance system, the specifics of insurance obligations for loss of use compensation after a car accident, as decided by the Higher Regional Court (OLG) in Oldenburg, aren't detailed here. However, basic principles of German insurance law and compensation for car accidents can be inferred.
- For a comprehensive grasp of the court's ruling, it's crucial to consult the court's decision directly or seek legal advice from an attorney specializing in German insurance law.
- German Insurance System: Accident claims in Germany are governed by the statutory accident insurance system, outlined in Book VII of the German Social Code (SGB VII).
- Liability Insurance: Liability insurance in Germany covers damages inflicted on third parties, including property damage and financial losses, but doesn't cover damage to the insured's own property or damages related to work, workplace, or company activities.
- Loss of Use Compensation: Loss of use compensation is usually covered under liability insurance policies and is designed to reimburse the victim for the loss of use of their vehicle due to the accident. The amount of compensation depends on the specific circumstances of the accident and the policy terms.
