Detailed Answer
Overview. After a crash in New Hampshire, you can seek “loss of use” damages to recover the cost of being without your vehicle while it is repaired or replaced. Loss of use compensates you for the reasonable value of having a similar vehicle available during that time (commonly rental-car costs or other out-of-pocket transportation expenses). This article explains how loss of use claims typically work in New Hampshire, what to document, and steps to make a claim against the at-fault driver’s insurer (and when your insurer may be involved).
What are loss of use damages?
Loss of use damages reimburse the plaintiff for the reasonable cost to replace the use of property (your car) while it is unusable because of another party’s negligence. Common measures include:
- Actual rental-car costs for a comparable vehicle.
- Reasonable market rental rate for a similar vehicle if you rented privately or used a car-share.
- Out-of-pocket transportation costs (taxi, rideshare, public transit) that reasonably replace your vehicle’s function.
You generally cannot recover speculative amounts (for example, unlimited replacement luxury rental) or double-dip by recovering both rental costs and the same expense elsewhere.
Who can pay loss of use?
Usually the at-fault driver’s liability insurer pays loss of use as part of a property-damage claim. If the at-fault driver lacks insurance or is underinsured, your own policy (if it provides rental reimbursement or collision coverage) may cover rental costs subject to your deductible and policy limits. If your insurer pays, it may seek reimbursement from the wrongdoer’s insurer through subrogation.
How much can you recover?
Courts and insurers look for a reasonable, market-based measure of loss. Acceptable approaches include:
- Actual documented rental receipts for a comparable vehicle for the days it was unavailable.
- A daily reasonable-market rental rate multiplied by the number of days the vehicle was unusable (reasonable-market can be shown by online rental quotes or local rental-company rates).
- Costs you actually incurred for alternative transportation that reasonably replaced the car’s function.
Insurers often challenge overly long rental periods or excessive daily rates. You must show the car was unavailable because of the accident and that your chosen replacement was reasonable.
How to calculate the period of loss
The loss-of-use period commonly runs from the date your car was taken out of service (date of crash or date it was first in the shop) until the earlier of:
- The date repairs were complete and the vehicle was available for pickup; or
- The date you accepted a settlement and obtained a replacement vehicle; or
- The date the vehicle was declared a total loss (at which point loss-of-use may end unless you can show reasonable delay in replacement).
Be ready to document repair-order dates, rental start/end dates, repair-shop communications, and any insurer or appraiser reports.
Step-by-step: How to make a loss-of-use claim in New Hampshire
- Report the crash. Notify your insurer promptly and report the crash to the at-fault driver’s insurer when you have their information.
- Preserve evidence. Keep repair orders, rental receipts, written estimates, photos of damage, and communications with repair shops or insurers.
- Rent reasonably. Choose a rental that is comparable to your vehicle’s size and class. Luxury upgrades are likely to be reduced or denied.
- Document the period of loss. Get written repair-start and repair-completion dates from the repair shop. If repairs are delayed, obtain written explanations.
- Send a demand to the at-fault insurer. Prepare a short demand packet with: your contact info, police report (if any), repair estimate or final bill, rental receipts or a reasonable rental-rate calculation, and a clear dollar demand for loss of use plus property-damage reimbursement.
- Negotiate or escalate. If the insurer offers less than you believe fair, respond with documentation and a rationale. If needed, consider mediation or filing a claim in the appropriate court.
If the insurer denies or undervalues the claim
If the insurer refuses to pay reasonable loss-of-use damages, your options include negotiating further, hiring an attorney, or filing suit. New Hampshire has small-claims and superior courts; the correct forum depends on the amount in dispute. Keep in mind courts expect that claimants mitigate damages — you should not rent an extravagantly priced vehicle and claim the excess.
Practical examples (hypotheticals)
Example A: Your compact car is in the shop for 10 business days. You rented a compact car at $40/day. You kept all receipts and the repair shop’s written dates. You can demand $400 in loss-of-use from the at-fault insurer.
Example B: Your vehicle is declared a total loss, but you had to wait three weeks for a replacement vehicle. You may claim reasonable rental costs for the interim, supported by rental receipts and a showing that you attempted to replace the vehicle sooner.
When to talk to an attorney
Consider getting legal advice if:
- The insurer denies responsibility for the accident;
- You face repeated unreasonable reductions of a documented claim;
- The dollar amount is significant or the facts are contested (e.g., when repairs are delayed for reasons the insurer disputes); or
- Liability is disputed or there are offsetting claims.
An attorney can evaluate your evidence, draft demands, and represent you in court if needed.
Important note: This summary is educational information about how loss-of-use claims generally work in New Hampshire. It is not legal advice and does not create an attorney-client relationship. Laws and procedures change and may vary with the facts of a particular case. For specific legal advice, consult a licensed New Hampshire attorney.
Helpful Hints
- Start documenting immediately: take photos, get repair estimates, and save rental receipts.
- Request written start and completion dates from repair shops and keep all emails or texts.
- Rent a comparable car class; avoid expensive upgrades that insurers will deny.
- Keep a daily log of transportation expenses if you use taxis or rideshare as a replacement.
- Include a concise, itemized demand letter when you first present your loss-of-use claim to the at-fault insurer.
- Be mindful of time limits to bring claims; act promptly even if you aren’t sure you will file a lawsuit.
- If your own insurer pays you under collision or rental reimbursement, track communications because your insurer may pursue subrogation against the at-fault party.
- Save a copy of every communication you send to or receive from insurers, repair shops, and rental companies.