Claiming Loss-of-Use Damages for Your Car After a Crash in South Dakota

Short answer: If another driver’s negligence made your car unavailable, you can seek “loss of use” damages in South Dakota to recover the reasonable cost to replace the vehicle’s use while it was being repaired or replaced. To maximize your chance of recovery, document the loss, calculate a reasonable daily rate, present a clear demand to the at-fault insurer (or the at-fault driver), and be prepared to file a claim in small claims or civil court if necessary. This is general information only and not legal advice. For legal advice about your specific case, consult a licensed South Dakota attorney.

What “loss of use” means

Loss of use refers to the economic loss you suffer when you cannot use your vehicle because it is being repaired or replaced after a crash. Courts and insurers in South Dakota typically award either the actual cost to rent a replacement vehicle or a reasonable daily value for the vehicle’s use, multiplied by the number of days the car was unavailable.

Who you can claim from

• The at-fault driver or the at-fault driver’s liability insurer.
• Your own insurer only if you have coverage (for example, rental reimbursement) and you are using your own policy benefits.

Step-by-step process to make a loss-of-use claim in South Dakota

1. Confirm fault and coverage. Identify the at-fault party and their insurer. South Dakota claims are typically brought against the at-fault driver’s liability carrier.
2. Document when the car was unavailable. Keep repair shop estimates, repair orders, and a written statement from the repair shop showing the dates the shop received the vehicle and the date it was returned. If the vehicle was totaled, keep the date the insurer declared it a total loss and the date you surrendered the vehicle.
3. Collect evidence of your rental costs or fair rental value. If you rented a comparable vehicle, keep all rental receipts. If you did not rent, gather local rental rates for comparable vehicles (online quotes, rental company rate sheets) or obtain a written valuation from a rental company showing the reasonable daily rental value for a vehicle like yours.
4. Mitigate your damages. You must act reasonably to reduce loss. If a reasonable rental option existed, failing to rent may reduce recoverable damages. Conversely, you don’t need to rent an expensive luxury vehicle if a standard comparable car would meet your needs.
5. Calculate the claim amount. A common formula: reasonable daily rental rate × number of days the vehicle was unavailable. Add any documented fees (taxes, optional insurance you reasonably purchased) and subtract any period when you had alternative use (e.g., you borrowed another car). Keep a clear spreadsheet or list of the calculation and attach supporting receipts.
6. Send a demand to the insurer. Prepare a concise written demand including: timeline, repair shop statements or total-loss notice, rental receipts or rental-rate evidence, calculation of the loss-of-use amount, and a deadline to respond. Attach supporting documents and request payment from the at-fault insurer. Most claims settle at this stage.
7. If the insurer denies or undervalues the claim. Try written follow-up and, if needed, escalate to the insurer’s claim supervisor or file a complaint with the South Dakota Division of Insurance (https://dlr.sd.gov/). If you still cannot resolve the claim, consider small claims court for modest claims or consulting an attorney for a larger matter.
8. File suit if necessary. Keep in mind procedural rules and deadlines. If you plan to sue, gather all documentation and consider hiring a lawyer to handle negotiations and litigation.

How courts and insurers typically value loss-of-use in South Dakota

Insurers often reimburse actual rental car bills or pay a reasonable market rental rate. If you did not rent, courts may award a reasonable daily value based on local rental prices for comparable vehicles. South Dakota judges look for reasonableness and documentation. Inflated or speculative claims are less likely to succeed.

Evidence you should collect

• Police report and claim number.
• Repair shop estimate, pick-up/drop-off dates, repair invoices.
• Rental car agreements and receipts (if rented).
• Receipts or evidence of alternative transportation costs (taxis, rideshare) if you relied on them.
• Comparable rental rate quotes if you did not rent.
• Communication records with insurers and the at-fault party.

Small claims vs. civil court

If your loss-of-use claim (plus any related property damage) is within the small claims limit, filing a small claims action in your county may be faster and cheaper. For larger claims, consult a civil attorney. For local court information and forms, see the South Dakota Unified Judicial System: https://ujs.sd.gov/.

Practical tips to improve your claim

• Be organized: present a single packet with dates, receipts, and calculations.
• Request that the repair shop provide a signed statement of the exact days your car was unavailable.
• Keep communications in writing where possible.
• Know your insurance: if you have rental reimbursement, use it, but reserve rights against the at-fault insurer to avoid subrogation disputes.
• Don’t intentionally delay repairs to extend a loss-of-use period—courts disfavor that behavior.

Where to learn more about South Dakota law and insurance regulation

South Dakota Codified Laws and the state statute search are available at the South Dakota Legislature website: https://sdlegislature.gov/Statutes/. For consumer questions about insurance claims and policyholder rights, see the South Dakota Division of Insurance: https://dlr.sd.gov/insurance/.

When to talk to an attorney

Consult an attorney if the insurer refuses to pay reasonable loss-of-use damages, the at-fault party denies responsibility, the amount in dispute is large, or your situation involves complicated coverage issues. An attorney can advise on evidence, make formal demands, and, if needed, file suit.

Disclaimer

This article explains general principles about claiming loss-of-use damages under South Dakota law and provides practical steps you can take. It is educational and not legal advice. For advice about your specific situation, contact a licensed South Dakota attorney.

Helpful Hints

• Start documenting right away: dates and receipts are the backbone of a loss-of-use claim.
• If you rent, book a comparable-size economy car rather than a premium model to keep the claim reasonable.
• Ask the repair shop for a written timeline showing when they had your vehicle in their possession.
• Keep copies of all correspondence with insurers and the at-fault driver.
• Check whether your own policy includes rental reimbursement and use it to avoid out-of-pocket costs while preserving recovery rights against the at-fault insurer.