Detailed Answer
What “loss of use” means
Loss of use damages reimburse you for the period you could not use your vehicle because of someone else’s negligence. In Alabama, a loss of use claim is a property-damage claim against the at-fault driver (or that driver’s insurer). You can recover the reasonable cost to replace the vehicle’s services while it was unavailable (for example, rental-car costs or other transportation expenses), provided you can document the loss and show it was caused by the other driver.
How to establish a claim (step-by-step)
- Notify insurers and preserve proof. Promptly report the crash to your insurer and the at-fault driver’s insurer. Keep copies of all communications, repair estimates, and receipts.
- Document the length and reason the car was unavailable. Get written repair estimates or a total-loss appraisal from the repair shop or insurer that shows dates the car was taken in and the estimated or actual time required for repair or replacement. If the car was undriveable at the scene, retain the tow and storage invoices and the police report.
- Prove your loss of use expense. The strongest proof is actual rental-car receipts showing you paid for a car while yours was out of service. If you did not rent (for example, you used rideshares, taxis, or borrowed a vehicle), keep detailed receipts or a contemporaneous mileage/log showing out-of-pocket expense. If a rental was not available, document your efforts to obtain one (emails, phone logs, quotes).
- Calculate reasonable damage. Common approaches are: (a) the actual rental cost for a comparable vehicle for the period reasonably required to repair or replace your vehicle; (b) a reasonable daily rental value (supported by local market rental rates) multiplied by the number of days the vehicle was unavailable; or (c) actual alternative-transportation expenses. Courts and insurers expect the amount claimed to be reasonable and supported by evidence.
- Submit a written demand. Send a demand package to the at-fault driver’s insurer that includes: repair estimate or total-loss notice, rental receipts or other transportation receipts, tow and storage invoices, police report, and a clear demand for loss-of-use reimbursement.
- Negotiate or file suit if necessary. If the insurer refuses or undervalues the loss, you may negotiate, use mediation, or file a lawsuit in civil court seeking property-damage damages. If liability is contested or the case is complex, consult an attorney.
What kinds of loss-of-use are commonly allowed?
- Rental-car costs for a comparable vehicle while your car is being repaired.
- Reasonable value of replacement transportation (taxi, rideshare, or other documented alternate transport).
- Reasonable loss of use for a totaled vehicle until you replaced it or otherwise mitigated your damages.
What is not usually recoverable
Speculative earnings, convenience losses (without proof), or charges that are excessive compared with local market rental rates are likely to be denied. You must show actual or reasonable loss tied to the period the vehicle was unavailable because of the accident.
Practical proof to gather
- Repair orders and final repair completion date from the shop.
- Tow, storage, and impound invoices.
- Police report and photos of the damage.
- Rental car receipts or other transportation receipts and reservation correspondence.
- Communications with both insurers showing coverage positions.
- If the vehicle was a total loss, the total-loss appraisal, title transfer paperwork, and receipts showing the date you replaced the vehicle (if applicable).
Dealing with insurers
Insurers have different rules. Some at-fault insurers pay for a reasonable rental until the vehicle is repaired or replaced; others contest the number of days or the rental rate. Your own collision coverage or rental-reimbursement coverage may pay quicker, then you can seek reimbursement from the at-fault insurer. Keep your receipts and submit them promptly. If an insurer refuses payment for loss of use, ask for a written explanation and consider a formal demand or small-claims suit if the amount is under the small-claims limit.
Timing and legal deadlines
Act promptly. Waiting can hurt your ability to prove the reasonable rental period and your out-of-pocket expenses. Alabama has time limits for filing lawsuits; if you expect litigation, start sooner rather than later and confirm the applicable deadline with a lawyer.
When to hire an attorney
Consult an attorney if the at-fault insurer denies liability, disputes the reasonableness of your loss-of-use claim, or the amount involved justifies counsel. An attorney can send demand letters, negotiate settlements, or file suit and gather evidence that insurers may otherwise discount.
Practical example (hypothetical)
Hypothetical facts: your car is in the shop for 12 days after a rear-end collision caused by another driver. You rented a similar car for $35 per day and paid $420. You submitted repair orders showing the 12-day repair timeline, the rental receipts, and the police report to the at-fault driver’s insurer. A fair claim would seek the $420 (plus any reasonable taxes/fees) as loss-of-use damages. If the insurer disputes the number of days, your documentation of the shop’s schedule and your reservation history helps establish reasonableness.
Resources
For general information on consumer insurance topics in Alabama, see the Alabama Department of Insurance: https://www.aldoi.gov/. For help locating local rules and court procedures, visit the Alabama Legislature and the Alabama judiciary sites for links to local courts and procedures: https://www.legislature.state.al.us/ and https://judicial.alabama.gov/. These pages provide starting points for researching deadlines and courtroom procedures.
Disclaimer: I am not a lawyer. This information is educational only and does not constitute legal advice. For advice about a specific incident, consult a licensed attorney in Alabama.
Helpful Hints
- Start documenting immediately: take photos, save receipts, and get written estimates.
- Keep a clear rental log: date in/out, daily rate, vehicle class—this supports “reasonable” rental value.
- If you have rental-reimbursement coverage on your own policy, consider using it first and then seeking reimbursement from the at-fault insurer.
- Be reasonable: insurers will compare your rental choice and duration to local market norms—choose a comparable vehicle and avoid luxury rentals unless you can justify them.
- Obtain repair-shop documentation that shows when parts were ordered and when repairs were completed—this helps prove the repair timeline wasn’t extended unnecessarily.
- If the at-fault driver’s insurer offers to pay for “loss of use,” request that any settlement be provided in writing and fully identify what period and costs are covered.
- If your claim is denied, request the insurer’s denial in writing and ask for the factual basis—they must explain why they refuse payment.
- Consider small claims court for modest loss-of-use claims if negotiations fail and the amount is within the local small-claims limit.