Claiming Loss of Use Damages for a Car in Utah

Short answer: Under Utah law, you can seek compensation for the reasonable cost to replace or substitute transportation while your vehicle is out of use because of another driver’s negligence. To succeed, document the loss carefully, present reasonable cost evidence (rental receipts, invoices, or a reasonable daily value), file a timely claim with the at-fault insurer, and, if needed, bring a civil action before the statute of limitations expires.

Detailed Answer — What loss of use means and how to claim it

What is “loss of use”? Loss of use refers to the economic loss you incur when you cannot use your vehicle after an accident. Typical recoverable items are the cost to rent a comparable car, taxi/Uber/Lyft or public transit fares, or other reasonable replacement transportation costs while your vehicle is being repaired or is out of service due to the accident.

Who can claim loss of use? The vehicle owner or an authorized user who suffers the loss of use may claim these damages. If the vehicle is owned by a business, the business may claim the rental or replacement cost. If you were not the vehicle owner but had a documented, lawful right to use the car (for example, a named driver), you may also present a claim for your actual out-of-pocket transportation costs.

What types of loss of use are typically awarded?

• Actual rental-car costs for a similar vehicle (receipts are best).
• Reasonable daily rental value calculated from market rates if you did not rent but use alternative transportation.
• Taxi, rideshare, parking, and public transit fares related to the inability to use your car.
• In limited cases, diminished business income for commercial vehicles if you can prove loss with records.

What is not usually recoverable? General inconvenience, personal annoyance, or non-economic losses (like time spent arranging transportation) are rarely compensable as loss of use unless they translate into measurable economic loss.

Step-by-step process to make the claim

1. Report the accident and preserve evidence. Exchange information at the scene, file a police report if required, and notify your own insurer as soon as possible.
2. Get written repair estimates and a repair schedule. Obtain a repair estimate from a reputable shop and a projected repair timeline. Keep all estimates and communications.
3. Document replacement transportation costs. Save rental receipts, taxi or rideshare receipts, or other evidence of expenses. If you didn’t rent a vehicle, keep a log of dates you lacked use and show a reasonable daily market rate for a comparable car.
4. Send a demand to the at-fault driver’s insurer. Include the repair estimate, rental or alternative-transportation receipts, the vehicle ownership documentation, and a clear demand for loss of use damages.
5. Negotiate or escalate. Insurers frequently negotiate. If the insurer refuses fair compensation, you may escalate to a formal appraisal or file a lawsuit in civil court.
6. File suit if necessary and timely. If negotiations fail, you may sue the at-fault party in civil court. Be mindful of the time limit to bring a claim (see statute of limitations below).

How to prove your loss

• Vehicle ownership or regular use documentation (registration, title, or written permission).
• Repair estimates and repair invoices showing dates your vehicle was unavailable.
• Receipts for rentals, taxi/rideshare, public transit, or substitute transportation.
• Photographs of the damage, police report, and any correspondence with insurers.
• Market evidence for reasonable daily rental values if you did not actually rent (ads, local rental rates for a similar model).

Common defenses and how to address them

• Claim that loss was not reasonable: Submit market rental rates and comparable receipts to show reasonableness.
• Dispute over how long vehicle was unavailable: Provide repair shop timelines, invoices, and photos showing when work began and ended.
• Comparative fault arguments: If the insurer says you were partially at fault, Utah’s comparative fault principles can reduce recovery proportionally. Prepare contemporaneous evidence and witness statements to rebut fault claims.

Statute of limitations (timeliness): Utah imposes a time limit on tort claims for injury to person or property. You must bring a lawsuit within the state’s prescribed period for negligence or property damage claims. For planning purposes, don’t delay pursuing administrative claims or filing suit; consult the official Utah Code or an attorney about the exact deadline. (See Utah Code for limitations on actions: https://le.utah.gov/xcode/Title78B/Chapter2/78B-2-S307.html)

When to involve an attorney

Consider hiring an attorney if:

• The insurer denies liability or lowballs a reasonable loss-of-use demand.
• Loss of use damages are large, or you face a commercial-vehicle or business-income loss claim.
• Bad faith conduct by the insurer, complex fault disputes, or overlapping coverage issues arise.

An attorney can prepare a stronger demand letter, gather proof, negotiate with insurers, and file suit if necessary.

Helpful Hints

• Act quickly. Start documenting and saving receipts the day after the accident.
• Keep a dated log showing when you lacked access to your vehicle and what alternative transportation you used.
• Get repair estimates in writing and ask shops for projected completion dates.
• Rent a similar-sized vehicle to justify rental costs; cheaper or luxury rentals may be reduced by insurers as unreasonable.
• When possible, obtain contemporaneous evidence (photos, emails, text messages) showing your inability to use the car.
• Keep communications with insurers in writing. Follow up phone calls with an email summarizing what was said.
• Check whether your own policy includes rental reimbursement to cover short-term costs while you pursue recovery from the at-fault party.
• Preserve receipts even for small transit costs—small items add up and support your overall claim.

Disclaimer: This article explains general information about loss of use claims under Utah law and is not legal advice. It does not create an attorney-client relationship. For personalized legal advice, contact a licensed Utah attorney.