How to Claim Loss-of-Use Damages for a Car After an Accident in Vermont

Short answer: In Vermont you can seek loss-of-use (also called loss of use or rental value) damages from the at-fault driver or that driver’s insurer, or you can rely on your own auto policy if you bought rental reimbursement. To succeed you must show the vehicle was damaged due to the accident, that you reasonably could not use the vehicle while it was being repaired or replaced, and the reasonable cost to rent or the fair value of the lost use.

Detailed answer — how loss-of-use claims work in Vermont

This section explains, in simple steps, what loss-of-use damages are and how to pursue them in Vermont after a car accident.

1. What are loss-of-use damages?

Loss-of-use damages compensate you for the value of not having your car available while it is being repaired or while you reasonably await a replacement if it’s a total loss. Courts and insurers typically measure this by the reasonable cost of renting a comparable vehicle during the downtime or by a reasonable daily rate that reflects the vehicle’s market value.

2. Who can pay loss-of-use damages?

• The at-fault driver or the at-fault driver’s liability insurer (if the other driver is clearly responsible).
• Your own insurer, if you purchased rental reimbursement or other coverage that applies.

3. What evidence you need

Build a clear, organized file with these items:

• Police report and accident photos showing the damage.
• Repair estimate or final repair invoice that lists the dates repairs began and ended (or a total-loss letter from the insurer).
• Invoices or receipts for a rental car or other temporary transportation you actually used.
• If you did not rent, documentation showing the reasonable rental market rate for a comparable vehicle (examples: local rental company quotes, online daily rates for similar models, or statements from repair shops explaining downtime).
• Any correspondence with insurers or with the at-fault driver.

4. How to calculate a reasonable loss-of-use amount

Common methods used in Vermont and elsewhere:

• Actual rental cost method: If you rented a car, use the exact rental invoices for the time you lacked your car.
• Fair rental-value method: Use market rental rates for a comparable make/model/size for the number of days the vehicle was unavailable.
• Daily value method: A daily rate based on a percentage of the car’s market value (used less frequently and must be reasonable and supported by evidence).

5. Presenting the claim to the insurer or the at-fault driver

1. Send a written demand that lists the dates of lost use, the supporting documents, the calculation of the amount requested, and a deadline for response (typically 10–30 days).
2. If the at-fault insurer denies or underpays, ask for a written explanation and the insurer’s computation.
3. Keep all receipts and communication records. If the insurer offers less than your documented amount, you can negotiate or escalate to a claim appeal or civil action.

6. If the insurer refuses to pay

Your options include:

• Filing a small-claims action if the disputed amount falls within Vermont’s small-claims limits (check the Vermont Judiciary for current limits and procedures).
• Pursuing a civil claim in superior court for larger sums.
• Hiring an attorney to send a demand letter or file suit if liability is clear but the at-fault party/insurer won’t pay.

7. Timing and prompt action

Act promptly. Preserve evidence and contact insurers quickly. Different claims (insurance claims, small claims, civil suits) have different timing rules. For details on statutory deadlines and court procedures, consult the Vermont statutes and the Vermont Judiciary early in the process:

• Vermont Legislature statutes: https://legislature.vermont.gov/statutes
• Vermont Department of Motor Vehicles — insurance information: https://dmv.vermont.gov/insurance
• Vermont Judiciary (court & small claims info): https://www.vermontjudiciary.org

8. Common defenses insurers or drivers use and how to respond

• “You didn’t rent a car”: You can still claim reasonable rental value if you can show you needed the car and rental costs were reasonable for the period.
• “You kept the car and could have used it”: Produce repair invoices that show the vehicle was physically unavailable or unusable.
• Disputes about reasonableness: Use multiple rental quotes, repair shop timelines, and local market rates to substantiate your daily figure.

Helpful Hints

• Immediately document the accident: take photos, get a police report, and note names and policy information of other drivers.
• Buy rental reimbursement coverage if you want guaranteed rental help — it typically pays your rental regardless of fault.
• Keep a contemporaneous log of reasonable transportation expenses and the dates you lacked your car.
• Get written repair timelines from the repair shop showing the vehicle’s inoperable dates.
• When dealing with insurers, always follow up in writing and keep copies of letters, emails, and invoices.
• If the claim is over the amount you’re comfortable handling, consider consulting a Vermont attorney experienced in auto/property-damage claims — many offer free initial consultations.

When to talk to an attorney

Consider legal help if liability is contested, the insurer refuses to pay reasonable loss-of-use, the amount is substantial, or you face complicated issues (e.g., total loss, salvage disputes, or subrogation questions). An attorney can evaluate evidence, prepare a demand letter, and, if needed, file suit on your behalf.

Disclaimer: This article explains general principles under Vermont law and is for informational purposes only. It is not legal advice and does not create an attorney-client relationship. For advice about your specific situation, contact a licensed Vermont attorney.