What you need to know to claim loss‑of‑use damages for your car under Michigan law

Quick summary: If another driver’s negligence made your vehicle unusable after a crash, Michigan law allows you to recover the reasonable cost to replace the use of your vehicle for the time it was out of service. To succeed you must document the loss, show it resulted from the crash, mitigate your damages, and pursue the at‑fault driver’s insurer (or sue if necessary). This article explains the typical steps, what evidence you need, how to calculate damages, and key deadlines.

Disclaimer: This is general information only and not legal advice. For advice about your specific situation, consider speaking with a licensed Michigan attorney.

Detailed answer — How loss‑of‑use claims work in Michigan

Under Michigan law you can generally seek compensation for the loss of the use of your vehicle as part of a property damage claim against the at‑fault driver. Loss‑of‑use damages reimburse you for reasonable substitute transportation (for example, a rental car or rideshare costs) or, in some circumstances, the reasonable daily value of using a similar vehicle while yours is being repaired or replaced.

Important legal context:

• Michigan’s no‑fault insurance system covers medical and certain personal injury benefits, but property‑damage claims (like damage to a car) are handled separately as tort claims against the at‑fault driver or that driver’s insurer.
• You must prove the loss was caused by the accident, that the costs you claim are reasonable, and that you took reasonable steps to reduce your loss (the duty to mitigate).
• Watch the deadline to sue. Most tort actions for property damage must be started within the applicable statute of limitations. For Michigan property damage claims, see Michigan’s statute of limitations rules (commonly three years for many property‑damage actions). See MCL 600.5805 for the statute of limitations applicable to many tort claims: https://www.legislature.mi.gov/mileg.aspx?page=getobject&objectname=mcl-600-5805

Steps to make a successful loss‑of‑use claim

1. Report the accident and start a claim: Notify your insurer and the at‑fault driver’s insurer promptly. File a police report if appropriate and keep a copy.
2. Get the vehicle inspected and repaired: Obtain a written repair estimate or final repair bill from a reputable body shop. The shop should list dates when the vehicle was in for repairs and when it was unavailable for use.
3. Document the period of non‑use: Keep the repair order showing when the shop received the car and when repairs were completed. If the vehicle was declared a total loss, document the date the vehicle was taken out of use and when you lost access to it permanently.
4. Prove the reasonable cost of substitute transportation: Keep receipts for a rental car, taxis, rideshares, or other transportation you used while your car was unavailable. If you did not rent a vehicle, document any out‑of‑pocket transportation expenses or show the fair market daily rental rate for a similar vehicle (a rental company quote or industry rate guide can help).
5. Mitigate damages: Courts will expect you to limit unnecessary costs. For example, you generally should not claim an expensive luxury rental if a reasonably priced comparable car was available.
6. Send a demand to the at‑fault insurer: Present a written demand that lists the loss‑of‑use period, the supporting repair records, rental receipts or reasonable rental rate evidence, and the total amount you seek. Keep copies of all communications.
7. If the insurer refuses or underpays, consider filing suit: If negotiations fail, you can sue the at‑fault driver or the insurer. For smaller claims, District Court/small claims procedures may apply; for larger claims you may need to file in circuit court. Check time limits and court filing rules or consult an attorney.

What counts as reasonable loss‑of‑use damages?

Common items awarded by insurers or courts include:

• Actual rental car costs for the reasonable time your car was unavailable;
• Receipts for other replacement transportation (rideshare, taxi, bus);
• If you did not rent a vehicle, a reasonable daily rental value for a comparable car multiplied by the days you lacked use (supported by rental quotes or market rates);
• In limited cases, compensation for loss of use if you can show a demonstrable need for the vehicle and a reasonable daily value — but courts disfavor speculative or overly generous daily rates.

Evidence you should collect (organized checklist)

• Police report or accident report
• Photos of vehicle damage and crash scene
• Repair estimate(s) and final repair invoice showing dates in/out of the shop
• Rental car agreements, invoices, and return receipts
• Receipts for rideshare/taxi or other transit expenses
• Written communication with both insurers (your own and the at‑fault driver’s)
• Any written rental quotes for similar replacement vehicles (to show reasonable daily value)
• Proof of attempts to mitigate (e.g., choosing a lower‑cost rental option)

Practical tips for negotiations

• Submit a clear demand packet that ties each dollar to a receipt or objective rate quote.
• If your insurer pays for a rental under your policy, remember that your insurer may have subrogation rights and will pursue the at‑fault insurer to recover those costs.
• Be ready to show why your claimed daily rental rate is reasonable. Provide comparable rental quotes or market evidence.
• If the insurer denies loss‑of‑use, ask for the specific reason in writing and document your efforts to respond.

When to consider filing a lawsuit or getting legal help

If the at‑fault insurer refuses to pay reasonable loss‑of‑use damages, denies liability, or offers an unreasonably low settlement, you can file a court action. For modest claims, Michigan District Court (including small claims procedures) may be appropriate; for larger or complex disputes, consult a lawyer. If liability is contested, or damages are disputed, an attorney can advise on evidence, valuation, and litigation strategy.

Remember: lawsuits must be filed within the statute of limitations. See Michigan’s statute of limitations provisions for many tort claims at MCL 600.5805: https://www.legislature.mi.gov/mileg.aspx?page=getobject&objectname=mcl-600-5805

Helpful Hints

• Start collecting evidence immediately — repair orders and rental receipts are the strongest proof.
• Keep a clear timeline (calendar) of when your car was unavailable and when you used substitute transport.
• Save all emails, texts, and letters with insurers and repair shops. These documents can prove the duration of non‑use.
• If you rented a car, return it promptly when your car is ready. Continuing to rent after your car is available can reduce or eliminate your claim for those extra days.
• Check whether your own collision coverage or rental reimbursement endorsement applies — your insurer may pay initially but then seek reimbursement from the at‑fault party.
• If you are unsure how to calculate a reasonable daily value, get one or more rental company quotes for a comparable vehicle and include them in your claim packet.
• Before filing suit, consider a demand letter with a clear deadline for payment — many insurers will respond to a well‑documented demand.
• When in doubt about strategy or if the claim is large, consult a Michigan attorney who handles vehicle/property damage cases.