What “loss of use” means and when it applies

“Loss of use” refers to compensation for the period you were deprived of your vehicle because of damage caused by someone else’s negligence. In Wisconsin, you can pursue loss of use as part of a property-damage claim against the at-fault driver’s liability insurer (or your own insurer if the at-fault driver is uninsured or underinsured and you have appropriate coverage).

Loss of use is separate from: (1) the cost to repair or replace the car, and (2) out-of-pocket expenses such as towing and storage. To recover loss of use you must show the vehicle was unavailable for your normal use and that the loss has a measurable value.

How loss of use is commonly calculated in Wisconsin

There are two common approaches courts and insurers use to value loss of use:

• Actual rental cost: If you rented a comparable car while yours was being repaired, you can claim the reasonable rental charges you actually paid (or would have paid). Keep all rental invoices and show the vehicle you rented was similar in class and utility to your vehicle.
• Reasonable market rental value (fair rental): If you did not rent a car, you can claim the reasonable daily rental value of a comparable vehicle for the period your car was out of service. To support this you should document local rental rates for similar cars and explain why you needed a replacement vehicle.

Courts look for reasonableness: excessive rental claims or extended periods without good cause may be reduced or denied. If the vehicle was a total loss, loss-of-use may run until you replace the car or until a reasonable replacement period ends.

Steps to preserve and prove a loss-of-use claim

1. Document the crash and damage: Take photos of the damage and the scene. Obtain the police crash report and any medical/repair records that relate to the incident.
2. Get written repair estimates and invoices: Ask the repair shop to provide the date repairs were authorized, estimated repair time, and the completed repair invoice showing the actual dates work was done.
3. Save rental receipts and alternative transportation records: Keep car rental invoices, rideshare receipts, public transit receipts, taxi receipts, or mileage logs showing how you replaced the car’s use.
4. Keep communications: Save emails, letters, and notes of phone calls with the at-fault driver’s insurer, your insurer, and repair shops. Record dates and times where possible.
5. Establish the reasonable rental rate: Research local rental rates for comparable vehicles during the repair period and collect printouts or quotes to support your claim if you didn’t actually rent.
6. Mitigate damages: Do not inflate loss by keeping a car out of service when repair could reasonably have been completed sooner. If you delay repairs for personal reasons, the insurer may deny part of the claim for that period.

How to present the claim to the insurer

1) File a property-damage claim with the at-fault driver’s liability insurer. Include all supporting documents: repair estimate, repair invoice, rental receipts or fair-rental documentation, and the police report.

2) If the at-fault driver lacks insurance, file a claim under your own uninsured/underinsured motorist or rental reimbursement coverage if you have those policies.

3) Send a written demand letter that itemizes the loss-of-use amount and attaches supporting documentation. State the period you claim loss of use and how you calculated the daily rate.

4) If the insurer denies or undervalues the claim, ask for a written explanation of the denial and the basis for any reduction. You may be able to escalate the claim within the company or file a complaint with the Wisconsin Office of the Commissioner of Insurance (OCI) if you suspect an unfair claim practice.

When to consider small-claims court or hiring an attorney

If negotiation with the insurer fails, you can sue in small claims court for smaller loss-of-use and property-damage claims. For larger claims, or if liability is disputed, consult a Wisconsin attorney who handles auto property-damage cases. An attorney can assess whether you have additional damages (like bad-faith conduct by the insurer) and whether it’s worthwhile to sue.

Note: Wisconsin law imposes time limits on when you must file a lawsuit for property damage. These limits appear in the Wisconsin statutes governing limitations; check Wis. Stat. ch. 893 for applicable deadlines and exceptions and consult an attorney promptly so you do not lose your right to sue. See the statutes at: https://docs.legis.wisconsin.gov/statutes/ and the limitations chapter at: https://docs.legis.wisconsin.gov/statutes/statutes/893.

Relevant Wisconsin resources and statutes

• Wisconsin Statutes (general): https://docs.legis.wisconsin.gov/statutes/
• Wisconsin statutes on civil liability and damages (see chapter on liability/damages): https://docs.legis.wisconsin.gov/statutes/statutes/895
• Wisconsin Department of Transportation (crash reports, salvage titles and other vehicle procedures): https://wisconsindot.gov
• Wisconsin Office of the Commissioner of Insurance (consumer complaints and insurer oversight): https://oci.wi.gov

Helpful hints

• Act quickly. Collect photos, the police report, repair estimates, and rental receipts as soon as possible.
• Document contemporaneously. Daily logs, dated emails, and receipts strengthen your proof of the period the vehicle was unavailable.
• Use comparable rental rates. If you didn’t rent, support your fair-rental number with local rental quotes for similar vehicles.
• Don’t accept a quick low offer from the insurer until you verify repair timelines and replacement costs. Insurers often aim to minimize payouts; get the full documentation ready before settling.
• If liability is disputed, preserve evidence (photos, witness contact info, repair shop records) and consider consulting a lawyer early.
• Check your own policy. Your auto policy may include rental reimbursement that pays immediately for a rental car while your vehicle is repaired.
• If the insurer acts unfairly, you may complain to the Wisconsin OCI. Keep records of all communications before filing a complaint.