Short answer: If your car is unusable because of another driver’s negligence, you can usually recover reasonable costs for the period you could not use the vehicle (commonly rental car costs or a daily fair-use value). To succeed you must prove the vehicle was out of service for a reasonable time, document your actual losses, present those losses to the at-fault driver’s insurer (or your insurer if applicable), and file a lawsuit if the claim is denied. This article explains the steps to take and what evidence New Jersey insurers and courts typically expect.

Detailed Answer

What “loss of use” means

“Loss of use” refers to the economic loss a vehicle owner suffers while the vehicle is unavailable because of crash damage. Courts and insurers commonly allow recovery for the cost of a replacement vehicle (rental or comparable transportation) or a reasonable daily value for the car during repairs or while waiting for a replacement.

Legal basis in New Jersey

New Jersey allows recovery for property damages, which may include the reasonable cost to replace the use of damaged property. Most loss-of-use claims proceed under ordinary property-damage tort principles and through an insurer’s property-damage claim process. For general information about New Jersey laws and statutes, see the New Jersey Legislature site: https://www.njleg.state.nj.us/. For insurance-specific rules and consumer guidance, see the New Jersey Department of Banking & Insurance: https://www.state.nj.us/dobi/.

Who pays

The at-fault driver’s liability insurance ordinarily pays property-damage claims, including reasonable loss-of-use expenses. If the at-fault driver is uninsured or underinsured, your own policy’s coverages (if any) could apply. Your own insurer may advance or cover rental costs depending on your policy terms and whether you have rental reimbursement coverage.

What you must prove

• The vehicle was damaged and not usable for the dates claimed (repair shop estimates, invoices, or a total-loss determination help).
• The length of time the vehicle was actually unavailable and why that time was reasonable (repair schedules, parts delays, insurer approvals).
• The amount claimed is reasonable and supported by documents (rental receipts, invoices for substitute transportation, or market rental-rate evidence).
• You took reasonable steps to reduce (mitigate) your losses—e.g., you chose a reasonable rental and did not keep a rental longer than necessary.

How to calculate loss of use

There are two common methods:

1. Actual cost method — use the actual rental receipts for a comparable vehicle. This is most persuasive when you rented a car because you had no other transportation.
2. Fair market/day-value method — multiply a reasonable daily rental or use value (based on market rates for similar vehicles) by the number of days the vehicle was unusable. This method is common when you did not rent but still lost the vehicle’s use.

Keep a clear day-by-day record and supporting documentation (repair shop daily updates, email/text exchanges about part orders, and insurer authorization delays). If your vehicle was declared a total loss, loss-of-use may run until you obtain a replacement vehicle or until a reasonable time for replacement has passed.

Practical step-by-step process

1. Document the crash: police report, photos, and initial repair estimate.
2. Get a written repair estimate and a repair timeline from a licensed shop. If the car is totaled, get the total-loss valuation in writing.
3. Keep all receipts for rental cars, rideshare, taxis, or alternative transportation.
4. Notify the at-fault driver’s insurer promptly and present your property-damage claim with documentation (estimates, receipts, and a written calculation of days lost and daily rates).
5. If the insurer disputes reasonableness, provide market-rate evidence (rental company price listings, online rate snapshots, or multiple quotes).
6. Send a demand letter if the insurer refuses to pay; include a clear calculation, copies of documents, and a deadline for payment.
7. If the insurer or driver refuses to pay, consider filing a suit in the appropriate civil court (small claims for smaller amounts or civil court for larger claims). Check time limits to avoid missing the statute of limitations.

Deadlines and statutes of limitations

Time limits matter. Property-damage claims are governed by state limitation rules. As a practical matter, do not delay: preserve evidence and present your claim as soon as possible. For general statutory resources and civil procedure information in New Jersey, consult the New Jersey courts: https://www.njcourts.gov/ and the New Jersey Legislature: https://www.njleg.state.nj.us/.

When to involve an attorney

Consider an attorney if:

• The at-fault insurer refuses to pay a reasonable loss-of-use amount.
• The claim is large or involves complex valuation disputes (e.g., classic cars or unique vehicles).
• The other party denies liability and you need to pursue a property-damage lawsuit.

An attorney can demand payment, negotiate a fair settlement, and, when necessary, file suit in the proper court. If the amount is modest and the insurer cooperates, many claimants resolve loss-of-use disputes without an attorney.

Helpful Hints

• Start documenting immediately: photos, police report number, and repair-shop correspondence are vital.
• Save all receipts and invoices, including small costs (gas for a rental, installation fees, etc.).
• Ask the repair shop for daily status updates in writing if repairs are delayed by parts or insurer approvals.
• If you rent, try to get a comparable-size vehicle. Insurers may deny claims for luxury rentals unless justified.
• Mitigate costs — select reasonable rental options and return the rental as soon as repairs are complete.
• Get multiple repair estimates if you believe the first estimate overstates repair time or cost.
• Keep a log of how not having your car affected you (work days missed, childcare arrangements, etc.) — some courts consider this in assessing reasonableness.
• If negotiating with an insurer, be clear, organized, and provide an itemized demand with supporting documents.
• Check the New Jersey Department of Banking & Insurance for consumer help on insurer disputes: https://www.state.nj.us/dobi/.