Detailed Answer
What “loss of use” means
Loss of use is the economic loss you suffer when your vehicle is not available after a collision. It covers the reasonable cost to replace use of the car (for example, a rental car, taxi, rideshare, or other transportation) while your vehicle is being repaired or replaced.
Can you recover loss of use in North Dakota?
Yes. Under North Dakota law you can seek compensation for loss of use as part of a property-damage claim against the at-fault driver (or that driver’s insurer). Loss of use is a component of the damages you claim for harm to your property and is recoverable if you can prove the loss and its amount.
What you must prove
- Liability: The other driver caused the collision through negligence or fault.
- Vehicle was unusable: Evidence that your vehicle could not be used (for example, repair shop records that show the car was in for repairs).
- Reasonable cost of replacement transportation: Receipts or reasonable market rates for a rental vehicle, taxi/ride-share, or other transportation for the period you were without your vehicle.
- Reasonable duration: Proof the period claimed corresponds to when your vehicle actually could not be used (repair estimates, parts-order records, communications from the repair shop).
How insurers and courts typically calculate loss of use
Common methods include:
- Rental cost: the actual cost of renting a comparable vehicle for the repair period (supported by receipts).
- Fair market daily rental rate: a reasonable daily rate times the number of days the vehicle was unavailable.
- Alternative transportation costs: documented taxi, rideshare, or public-transportation expenses for the period.
- Replacement-value approach: If the vehicle is a total loss, some insurers calculate loss of use until a reasonable replacement was available.
Insurers often argue you had other options (a household vehicle, public transit) and may reduce the claim. You have a duty to mitigate (make reasonable efforts to limit) your damages; courts will not award loss of use for avoidable or unreasonable expenses.
Practical steps to claim loss of use in North Dakota
- Immediately document the accident: police report, photos of vehicle damage, and a copy of the crash report. North Dakota DOT crash information: https://www.dot.nd.gov/divisions/programs/crashrecords/.
- Get a repair estimate: ask the repair shop for a written estimate and an expected repair timeline. Keep all shop communications and invoices.
- Keep all receipts: rental car invoices, taxi/ride-share receipts, bus passes—keep itemized proof of cost and dates.
- Document efforts to limit expenses: notes about using a friend’s car, work-from-home arrangements, or other alternatives.
- Give notice to the at-fault driver’s insurer: submit a demand that includes the repair estimate, rental/transportation receipts, and a clear statement of the loss of use amount.
- Negotiate or file a claim: most claims settle with the insurer. If the insurer denies or underpays, you can sue in civil court. For smaller claims, consider North Dakota small claims court. See North Dakota Courts small-claims information: https://www.ndcourts.gov/legal-resources/small-claims.
Timing and statutes
Statutes of limitations determine how long you have to file suit. Look up the North Dakota Century Code for civil actions and property-damage limitations at the official code site: https://www.legis.nd.gov/cencode. If you expect a dispute or the amount is substantial, start the process promptly so you do not miss any procedural deadlines.
Typical defenses insurers raise
- Disputing liability (they claim your fault).
- Claiming you failed to mitigate costs or that claimed expenses were unreasonable.
- Arguing the rental period is longer than necessary (pointing to repair-shop timelines).
When to talk to an attorney
Consider consulting an attorney if:
- The at-fault insurer denies liability or lowballs your loss-of-use amount.
- Your loss-of-use plus other damages are substantial.
- There’s a dispute over how long your vehicle was unusable or about comparative fault.
A lawyer can calculate a realistic loss-of-use claim, preserve evidence, and pursue litigation if needed.
Sample documentation checklist
- Police/crash report.
- Repair estimate and invoices with dates.
- Rental car receipts or alternative-transportation receipts (date-stamped).
- Communications with the repair shop showing parts delays or completion dates.
- Photos of vehicle condition.
- Copies of demand letters to the insurer.
Disclaimer: This article explains general North Dakota civil claims concepts and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed North Dakota attorney.