Detailed Answer
Short answer: In Minnesota you usually recover loss-of-use damages from the at-fault driver’s liability insurer (not from your personal no-fault PIP). To succeed, you must show the vehicle was unusable because of the crash, document the period it was unavailable, and prove the reasonable cost to replace use during that period (rental receipts, comparable vehicle rental rates, or other objective measure).
Which law applies
Minnesota is a no-fault state for bodily injury insurance (Minn. Stat. ch. 65B). Property-damage claims (including loss of use of your vehicle) are handled through the at-fault driver’s liability insurance or through a civil claim against that driver. For an overview of Minnesota’s no-fault statutes, see: Minn. Stat. ch. 65B.
Who to claim from
- If another driver caused the crash, make a property-damage / loss-of-use claim with that driver’s liability insurer.
- If you are uninsured or cannot identify the other driver, your options depend on your own policy. Contact your insurer and read your policy for uninsured motorist/property damage coverages.
What “loss of use” means and how it’s measured
“Loss of use” compensates you for the value of not being able to use your vehicle while it is being repaired or replaced. Minnesota insurers and courts commonly measure loss of use by one of these methods:
- Actual cost of a replacement rental car you rented because you could not use your vehicle (supported by receipts).
- Reasonable rental value for a comparable vehicle for each day your vehicle was unavailable (use market rental rates if you did not rent a car).
- Diminution in value or other measures if your car is totaled and cannot be replaced immediately—loss-of-use may be limited to a reasonable period until you are able to replace the vehicle.
Practical steps to claim loss of use in Minnesota
- Report the crash: Notify your insurer and the at-fault driver’s insurer promptly. Keep the claim numbers and adjuster contacts.
- Document that your vehicle was unusable: Get and save the repair shop’s intake records, the estimate, statements that repairs were required because of the crash, and the dates the shop had the vehicle. Photographs showing damage help establish necessity of repairs.
- Document the period of loss: Keep the date the vehicle was taken out of service, the date repairs began (if different), and the date the vehicle was ready and actually returned to use.
- Gather cost evidence: If you rented a car, save rental agreements and receipts. If you did not rent, check local rental rates for comparable vehicles (print or save screenshots) to show a reasonable per-day value.
- Prepare a demand: Send a written demand to the at-fault insurer including: summary of accident, repair shop estimate, vehicle in-service dates, rental receipts or rental-value calculation, and a clear math of the amount demanded. Keep proof of delivery.
- Negotiate or escalate: Most insurers will respond with an offer. If they deny or undervalue the claim, request a written denial and get reasons in writing. If you and the insurer cannot agree, consider small claims court or hiring an attorney for a civil suit.
Sample loss-of-use calculation
Example: car in the shop 10 days & comparable rental value $45/day
Loss of use = 10 days × $45/day = $450
If you actually rented a car for 10 days and paid $400 total, attach the receipts and demand $400 (you can also add reasonable taxes/fees if supported by receipts).
When insurers may deny or limit loss-of-use
- If the insurer believes you had access to an operable vehicle (e.g., a second family car).
- If the insurer considers your rental rate unreasonable. They may pay only a market-rate amount for a comparable vehicle.
- If the insurer disputes causation—claiming the vehicle was already disabled for unrelated reasons. Clear pre-accident photos and maintenance records help defeat that argument.
Litigation and small claims in Minnesota
If negotiations fail, you may file a civil claim. Many loss-of-use claims are handled in small claims or district court depending on the amount in dispute. For practical filing information and forms, see the Minnesota Judicial Branch small-claims help: mncourts.gov — Small Claims.
When to consult an attorney
- The insurer refuses to pay a reasonable loss-of-use amount or denies coverage entirely.
- The amount in dispute exceeds what you can reasonably handle in small claims.
- There are complex facts (multiple at-fault drivers, shared fault, or potential fraud).
Recordkeeping checklist
- Police report (if any)
- Repair shop estimates, invoices, and dates vehicle was in shop
- Rental-car agreements and receipts (or evidence of prevailing local rental rates)
- Photos of damage and of the vehicle before the crash (if available)
- All correspondence and notes of phone calls with insurers and shops (dates, names, and summaries)
Reminder: This article explains general principles only. For the specific statute language about Minnesota automobile insurance and no-fault coverage, see Minnesota Statutes, Chapter 65B: https://www.revisor.mn.gov/statutes/cite/65B.
Helpful Hints
- Start documenting loss-of-use immediately. Delay weakens your claim.
- If you can, rent a comparable vehicle and keep receipts. Actual receipts are stronger than market-rate estimates.
- Get a written estimate from the repair shop that includes start and estimated completion dates.
- Insurers often accept reasonable market rental values. If you didn’t rent, collect rental quotes from local vendors showing comparable models and rates.
- Ask the insurer to explain reductions or denials in writing so you can respond effectively or use the response in court.
- Don’t sign away your rights without checking: a “full release” after a small payment for property damage can bar future claims for loss of use or other damages.
- If the at-fault insurer refuses to communicate, file a complaint with the Minnesota Department of Commerce and consider small claims or a civil suit.
Disclaimer: This is general information, not legal advice. It does not create an attorney-client relationship. If you need advice about your specific situation, contact a licensed Minnesota attorney.