Understanding Loss of Use Damages for a Car After an Accident

This article explains how to claim loss of use damages for your car under Indiana law, what counts as recoverable, how to calculate the amount, what evidence you should collect, and practical steps to make a successful claim. This is educational information only and not legal advice.

Detailed Answer

What does “loss of use” mean?

Loss of use is a category of property damage: it compensates an owner for the value of being deprived of their vehicle while it is unavailable due to another party’s negligence (for example, repairs after an at-fault collision). Instead of—or in addition to—recovering repair costs or diminished value, you seek payment for the time you could not use the car.

When can you recover loss of use in Indiana?

In Indiana, you can seek loss of use damages if another driver’s negligence caused the damage to your vehicle and you suffered a measurable loss as a result. Recoverability depends on establishing (1) the other party’s liability, (2) that your vehicle was unavailable because of the accident (dates it was unusable), and (3) a reasonable method for calculating the value of the lost use.

How do insurers and courts measure loss of use?

There are two common approaches:

• Actual rental cost: If you rented a comparable car while yours was being repaired, you can claim the rental charges (but only for a reasonable car and a reasonable rental period).
• Fair rental value / reasonable daily rate: If you did not rent a vehicle, you may claim a reasonable daily rental equivalent — the market rental rate for a similar vehicle multiplied by the number of days the vehicle was unavailable. Courts and insurers will want this rate to be reasonable and supported by market evidence (e.g., local rental listings or rental invoices).

Steps to calculate loss of use

1. Establish the period of loss: Use the date of the accident and the date the car was returned to service (repair completion, total loss settlement, or date you regained use).
2. Pick a reasonable daily rate: Use the actual rental invoice or a typical local rental rate for comparable cars. Avoid inflated luxury rates unless your car was luxury and the market supports that rate.
3. Multiply days by rate, then subtract any periods where you had a reasonable personal alternative (for mitigation).

Evidence you need

Document everything. The stronger your documentation, the more persuasive your claim will be:

• Repair orders and invoices showing dates vehicle was in the shop and the date repairs completed.
• Rental car invoices or receipts (if you rented).
• If you didn’t rent, market evidence of daily rental rates for comparable vehicles (screenshots or printouts from rental agencies or peer-to-peer platforms).
• Photos of damage and repair status, communications with the repair shop and insurer, and the police report.
• A written demand letter that sets out liability, damage amounts, and the loss of use calculation.

Mitigation duty

You must take reasonable steps to reduce your losses. For example, you should not hire an unusually expensive rental car when a lower-cost equivalent would be adequate. If you had an alternative transportation option that was reasonable (another household car, public transit), the insurer or court may reduce or reject loss of use for days you reasonably could have used that alternative.

Insurance handling and claims process

Practical steps:

1. Report the accident to your insurer and the at-fault driver’s insurer promptly.
2. Provide documentation (repair orders, rental receipts, and the demand for loss of use).
3. If the at-fault insurer denies or undervalues the claim, send a written demand letter that explains the calculation and attaches supporting documents.
4. If negotiations fail, you can pursue the claim in civil court (a small claims or county court depending on the amount). Keep in mind court filing deadlines and local procedures.

Time limits (statute of limitations)

Indiana imposes time limits on filing civil claims for property damage. Generally, claims for damage to property arising from negligence must be brought within the statutory deadline. To locate the current statute and confirm deadlines that apply to your situation, consult the Indiana Code and the Indiana courts’ self-help resources. A good starting point is the Indiana General Assembly website: https://iga.in.gov/, and the Indiana judiciary self-help pages: https://www.in.gov/judiciary/self-service/.

When to talk to an attorney

Consider getting legal help if:

• Liability is disputed.
• The insurer refuses to pay a reasonable amount for loss of use.
• The amount at stake exceeds small claims limits or the calculation is complex (e.g., total loss, multiple vehicles, business-use claims).

Helpful Hints

• Start documenting on day one: take photos, keep repair shop paperwork, and save all receipts and communications.
• If you rent, choose a reasonable, comparable vehicle and keep the rental agreement and receipts.
• If you don’t rent, collect market evidence of comparable rental rates—screenshots of local rental listings work well.
• Ask the repair shop for clear start and completion dates in writing; insurers often rely on shop dates to define the loss period.
• Send a concise written demand to the at-fault insurer with your math and supporting documents; include a deadline for response.
• Keep a mileage log if your car was partially usable—claims should reflect actual days you were deprived of reasonable use.
• Check local small claims limits and procedures on the Indiana judiciary site before filing in court.
• Remember mitigation: unreasonable rental choices or failure to use reasonable alternatives can reduce recoverable loss.

Disclaimer: This information is educational only and does not constitute legal advice. Laws change and every case is different. For legal advice specific to your situation, contact a licensed Indiana attorney.