Post-Claim Services
Replacement Vehicle Costs
What Is Replacement Vehicle Compensation?
Replacement vehicle compensation covers costs when a vehicle cannot be used due to a traffic accident or wrongful act. It typically includes the cost of a rental car used during repairs, also known colloquially as “downtime compensation”.
In short, while your damaged vehicle is being repaired, you may claim the cost of the vehicle you had to rent for transportation.
Scope of Cover
Accidents create not only repair costs but also extra expenses for daily mobility. Commercial vehicles out of service can cause significant income loss.
- Using a rental vehicle during repairs
- Temporary transport needs when the car is unusable
- Income loss for commercial vehicles
- Costs when an insurer should provide a replacement car but does not
The amount is closely linked to how long the vehicle stays in the workshop.
Who Pays?
Usually the at-fault party or their traffic insurer pays. If you are not at fault, you may claim from the other party’s compulsory traffic insurance.
- At-fault driver’s insurer — responsible for the victim’s replacement vehicle costs
- Comprehensive policyholders — if the policy includes replacement-car cover, the insurer may provide one for a period
- Court decision — if payment is refused, a lawsuit may be filed
How to Claim
- Prepare the accident/damage report and submit it to the insurer
- Keep rental invoices as evidence
- File a formal claim with the insurer
- If refused, consider legal action with a lawyer
Conclusion
Replacement vehicle compensation helps recover economic losses while your car cannot be used. For professional support, please contact us.