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If an accident damages a car beyond repair, loss of use coverage may be available for the amount of time required to replace the vehicle. In California, a person may be entitled to loss of use damages even if that person does not rent a substitute vehicle during the repair or replacement period.
(f) "Loss of Use" means the amount representing the reasonable value to the claimant for the deprivation of the use of the claimant's vehicle during the period reasonably required to make repairs or replace the vehicle, regardless of whether the claimant has incurred expenses.
For example, if your family normally spends around $200 a week for food, but now you are staying in a hotel without a kitchen, you may need to eat out for most of your meals. Eating out is costing you $300 a week. Under loss of use coverage, the $100 additional expense per week would be covered.
Fortunately, under North Carolina law, if you have a property damage claim for your damaged vehicle, you may be entitled to the cost of renting a similar type and size vehicle for a reasonable amount of time while your car is being repaired. This is known as loss of use or rental car reimbursement.
The phrase ?loss of use? is used to describe the damages that occur when conduct results in property being unavailable for use for a limited period of time. Generally, loss of use damages are measured by the rental value of a substitute property or chattel.