Detailed Answer

What loss-of-use damages are (in plain terms)
Loss-of-use damages compensate you for the time you could not use your car because another party damaged it. In Texas, you can seek these damages from the at-fault driver or that driver’s insurer as part of your property-damage claim. The key point: you must prove both that the other party caused the loss and the value of the loss while your car was unavailable.

How Texas law treats loss-of-use claims

Texas courts allow recovery for loss of use as a component of property-damage or economic damages when negligence causes the owner to lose use of their property. Your recovery depends on proof of the amount you lost. Texas also applies the principle of comparative responsibility (which can reduce recovery if you share fault). See Texas Civil Practice & Remedies Code, Chapter 33 for proportionate responsibility: https://statutes.capitol.texas.gov/Docs/CP/htm/CP.33.htm.

What you must prove

• Liability: that the other driver was at fault (police report, witness statements, photos).
• Causation: that the accident made the car unusable (repair estimates, mechanic’s notes).
• Amount of loss: a reasonable, fact-based dollar figure for the period you lacked the vehicle.

Common methods to calculate loss-of-use value

Because Texas requires proof of actual damages, people commonly prove loss-of-use one of two ways:

• Actual rental cost: if you rented a replacement vehicle, use the rental receipts as direct proof.
• Fair rental value or market rate: if you didn’t rent, show evidence of the fair daily rental value for a comparable vehicle (rental company quotes, local listings, or market-rate surveys) and multiply by the days you reasonably were without the car.

Typical evidence you should collect

• Police or crash report (obtain through Texas DPS crash records): https://www.dps.texas.gov/section/traffic-safety/crash-records
• Photos of damage and the scene
• Repair shop estimate and invoices showing dates the car was in the shop
• Repair order showing the date the vehicle was available (or not available) for use
• Rental invoices or comparable rental quotes showing per-day rates
• Receipts for alternative transportation (taxi, ride-share, public transit) if you relied on these
• Communications with the at-fault party’s insurer and any demand letters

Step-by-step: How to assert a loss-of-use claim in Texas

1. Document the accident immediately—photos, names, and contacts of witnesses, and the crash report.
2. Get a written repair estimate and an expected repair timeline from a reputable shop. If the insurer selects a shop, obtain their repair timeline details too.
3. If you rent a car, keep all rental agreements and receipts. If you don’t rent, gather fair market rental rates for a comparable car for the period you were without your vehicle.
4. Calculate your loss: rental receipts or (daily fair-rental rate) x (reasonable days lost). Keep a conservative, well-documented number.
5. Send a written demand to the at-fault driver’s insurer with evidence: crash report, repair invoices, rental receipts or market-rate support, and a clear dollar demand for loss of use and property damage.
6. If the insurer denies, underpays, or refuses, you can file suit in Justice Court (small claims) or County Court depending on the amount. Texas Justice Courts cover many vehicle damage claims—see information on Justice Courts here: https://www.txcourts.gov/programs-services/administration-of-justice/justice-courts/.

Hypothetical example

Hypothetical facts: You were rear-ended. The shop kept your car for repairs for 14 days. You rented a comparable car for 10 of those days at $45/day and used ride-share for the remaining 4 days at $20/day.

Sample calculation:

• Rental: 10 days x $45 = $450 (attach receipts)
• Ride-share: 4 days x $20 = $80 (attach receipts)
• Total loss-of-use claim = $530 (plus any property-damage costs such as repair bill)

Send this total with supporting documents to the insurance adjuster as part of your demand.

What if the insurer says loss of use is not covered?

Insurers sometimes refuse to pay loss of use or argue you could have repaired the car sooner. Respond with the documentation above and a written demand. If the insurer still refuses, consider filing suit. Many loss-of-use cases end in settlement; others proceed to Justice Court or County Court depending on the amount claimed.

Timing and statute-of-limitations considerations

Act promptly. Preserve evidence and send demands early. The Texas statute of limitations for most vehicle collision property-damage claims is two years from the date of the crash for personal actions; however, timing can vary by claim type. If you plan to sue, check relevant deadlines and act before the limitation period expires.

When to consider court (small-claims) versus settlement

If your loss-of-use plus repairs is within Justice Court limits and the insurer refuses a fair offer, small-claims court can be an efficient option. For larger claims, or if liability is disputed, you may need County Court or a formal lawsuit. See local Justice Court jurisdiction information: https://www.txcourts.gov/programs-services/administration-of-justice/justice-courts/.

Practical tips when dealing with insurers

• Keep all communications in writing or follow up phone calls with email/text confirmations.
• Be organized: create a single claim folder with all proofs, invoices, and a demand letter.
• Don’t accept low “global” offers that don’t break out loss-of-use; demand itemized payment if you want loss-of-use covered separately.
• Be realistic and conservative in your calculation. Courts expect reasonable, documented claims.

Relevant Texas statute references

• Comparative responsibility (may reduce recovery if you share fault): Texas Civil Practice & Remedies Code, Chapter 33.
• Information on crash records and how to obtain a report: Texas Department of Public Safety – Crash Records.
• Justice courts overview (small-claims options): Texas Judicial Branch – Justice Courts.

Disclaimer: This article explains general Texas information only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Texas attorney.

Helpful Hints

• Start documentation immediately after the crash—timely evidence strengthens a loss-of-use claim.
• Rental receipts are the strongest proof; if you didn’t rent, gather several comparable rental quotes to show the fair-market daily rate.
• Keep a daily log of how the lack of your car affected you (work commute, child care, lost opportunities) with dates—this helps show reasonableness.
• When you send a demand letter, include a concise summary, a math sheet for your loss calculation, and all supporting documents.
• If an insurer relies on a repair shop delay to deny loss of use, ask the shop for an explanation in writing about any reasons for extended repair time.
• If the at-fault party admits liability but refuses loss-of-use payment, consider small-claims court for faster resolution if the amount is within the court’s limits.