Detailed answer: What loss-of-use damages are and how to claim them in New Mexico

What are loss-of-use damages? Loss-of-use damages compensate an owner for the value of the time they could not use their vehicle because someone else (typically an at-fault driver) damaged it. The two common measures are:

• Actual rental cost — the reasonable cost to rent a comparable vehicle for the period your car was unavailable, or
• Fair rental value — an amount equal to what it would reasonably cost to replace use of your vehicle (often used when no rental was obtained).

New Mexico recognizes claims for loss of use as part of property-damage remedies in tort law (you ask the at-fault party or their insurer to pay for the loss of use in addition to repair or replacement). The specific amount you can recover depends on what you can document and prove: the length of time you lacked the vehicle, the reasonable rental cost or value of the vehicle’s use, and whether you had other available transportation.

Who can make a claim?

The vehicle owner (titleholder) generally has the right to claim loss-of-use damages. If you were the primary user but not the owner (for example, a lessee or someone with an exclusive use agreement), you may be able to claim loss-of-use too; keep the lease/rental agreement or written authorization to show your right to use the vehicle.

How to calculate loss-of-use

Common methods of calculation in practice:

• Documented rental: Use the actual receipts for a rental car that you reasonably hired while your car was unavailable.
• Comparable rental rate: If you did not rent, find the daily rental rate for a similar vehicle and multiply by the reasonable number of days the vehicle was unusable.
• Market-value approach: For older cars where a rental is unreasonable, you may claim a reasonable daily value of use (often lower than a rental rate).

To persuade an insurer or court, present contemporaneous records: rental receipts, repair shop communications showing start and end dates for repair, tow invoices, photographs, and testimony about how the vehicle’s loss affected your daily life.

What you must prove

1. The other party was at fault (or their insurer accepts liability).
2. Your vehicle was out of service because of damage caused by that party.
3. The period you lost use—supported by repair orders, rental agreements, or written statements from the repair shop.
4. The reasonable dollar value of the lost use (rental receipts, comparable-rate research, or expert testimony).

Practical steps to make a claim

1. Report the accident to your insurer and the at-fault driver’s insurer immediately.
2. Get written repair estimates and a firm repair timeline from a qualified shop. Keep all invoices and work orders.
3. If possible, rent a comparable vehicle and keep all receipts. If you choose not to rent, keep evidence showing why renting was unnecessary or unreasonable (e.g., you had another vehicle available).
4. Demand loss-of-use payment in writing to the at-fault driver’s insurer. Include proof of days out of service and the rental or fair-use calculation.
5. If the insurer disputes the amount, request an explanation in writing. You may need to negotiate, escalate to a supervisor, or file a small-claims or civil suit if the insurer refuses to pay reasonably.

When the insurer refuses or delays

If the at-fault insurer refuses to pay reasonable loss-of-use damages, your options include negotiating, filing a complaint with the New Mexico Office of Superintendent of Insurance (https://www.osi.state.nm.us/), or pursuing a claim in small claims court or district court depending on the amount involved. For small-dollar disputes, New Mexico’s court system provides resources to file without a lawyer; see the New Mexico Courts Self-Help pages at https://www.nmcourts.gov/.

Mitigation obligation

You have a duty to mitigate damages. That means you should not recover for loss-of-use you could have reasonably avoided — for example, by renting a cheaper replacement or using alternate transportation that was reasonably available. Conversely, you do not need to take unreasonable steps (for example, renting an extravagantly expensive car) to increase the claim.

Evidence that helps most

• Repair shop dates and written estimates (in and out dates).
• Rental car invoices showing make/model and daily rate.
• Tow bills and storage invoices establishing when the vehicle became inaccessible.
• Receipts for alternative transportation (rideshares, taxis) if you relied on them.
• Photos showing damage and correspondence with insurers.

Deadlines and statutes

Deadlines for filing suit can be strict. Do not delay pursuing a claim. For general reference to New Mexico statutes and deadlines, review the New Mexico Statutes online at the New Mexico Legislature: https://www.nmlegis.gov/Legislation/Statutes. For procedural rules and small-claims guidance, see the New Mexico Courts site: https://www.nmcourts.gov/.

Helpful hints

• Start documenting immediately. The strongest claims use contemporaneous repair orders, rental receipts, and dates.
• Keep a daily log of how the lack of your car affected you (work schedules, errands missed) if you plan to justify a longer loss-of-use period.
• Ask the repair shop to supply a written “out of service” date and a copy of any parts-order communications if parts delay the repair.
• If you must rent, choose a comparable vehicle — not an unusually expensive model — and keep all receipts.
• When you contact insurers, put demands in writing and keep copies of all correspondence and claim numbers.
• If the insurer offers a lump sum, carefully compare it to your documented losses before signing a full release; releases often bar future claims for the same loss.
• For disputes under the small-claims limit, consider filing in small claims court. Use the New Mexico Courts self-help pages for forms and instructions: https://www.nmcourts.gov/.
• Consider consulting a New Mexico attorney if liability is disputed, the loss-of-use figure is substantial, or the insurer refuses to pay.