Disclaimer: This article provides general information only. It is not legal advice. For guidance about your particular situation, consult a licensed Alaska attorney.
Detailed Answer
What “loss of use” means
Loss of use is money you can seek when your vehicle is not available because of an accident someone else caused. It covers the reasonable cost to replace the use of your car while it is being repaired or until you can replace it. You can claim loss of use whether you rent a car, use rideshares, or otherwise incur expenses to get where you need to go.
Who can pay for loss of use
The at-fault driver’s liability insurance is generally the primary source for loss-of-use damages. If you have rental-reimbursement coverage under your own policy, you may get payment from your insurer and your insurer may pursue the at-fault insurer for reimbursement.
Core legal elements you must show
- Liability: You must show someone else caused the accident or is otherwise legally responsible.
- Causation: The loss of use must result from the accident-related damage (e.g., your car was in the shop).
- Reasonable value: You must show the cost you claim is reasonable and supported by records or market rates.
- Mitigation: You must show you reasonably minimized your loss (for example, you accepted a reasonable rental or alternative transportation).
How loss of use is typically calculated
There are three common methods used to calculate loss-of-use damages. Use the method that fits the facts and that you can prove with documents.
- Actual rental cost: If you rented a vehicle while yours was repaired, submit rental receipts. Insurers usually accept actual rental invoices, if they are reasonable in type and price.
- Fair rental value: If you did not rent but used taxis, rideshares, or a friend’s car, calculate a reasonable daily rental value for a similar vehicle and multiply by the number of days your car was unavailable. Use local rental rates or published market data to support the daily rate.
- Replacement period for total loss: If your car was a total loss, loss of use often covers the period from the accident until you reasonably could obtain a similar replacement vehicle.
Typical proof and documentation
Strong documentation makes a claim credible. Keep and provide:
- Repair estimates and final repair invoices showing dates and time in repair.
- Rental car contracts and receipts.
- Receipts for rideshare, taxi, bus, or other transportation you used because of the accident.
- Communication with insurers and the repair shop showing timelines.
- Photos of the vehicle and damage, and any vehicle condition reports.
- Logs showing days the vehicle was unavailable (e.g., shop drop-off and pick-up dates).
What to expect from insurers
Liability insurers often evaluate whether the claimed daily rate is reasonable. They may:
- Accept the actual rental receipts.
- Offer a lower daily rate based on local market research.
- Reject claims that lack documentation or that appear excessive.
If an insurer denies or undervalues your claim, you may need to send a demand letter and, if necessary, file suit to recover the loss. Keep records of all communications.
Timing and next steps
Act promptly. Preserve evidence and notify the at-fault party’s insurer as soon as possible. Alaska has time limits for bringing claims in court. For procedural information, visit the Alaska Court System website: https://www.courts.alaska.gov/. For general state law resources, see the Alaska Legislature home page: https://www.akleg.gov/.
When to get an attorney
Consider consulting an Alaska attorney if:
- The insurer refuses to pay a reasonable amount.
- Liability is disputed.
- You have a total loss and you disagree about the replacement period or value.
- Your claim exceeds small-claims limits and you prefer legal representation.
Helpful Hints
- Document everything the moment it happens. Dates matter—record drop-off and pick-up dates for repairs and rentals.
- Keep original receipts for rentals, rideshares, and repairs. Photocopies and digital scans are useful backups.
- Get a written repair estimate and a written statement from the repair shop about how long repairs will take.
- If you rent a vehicle, choose an economy option if possible—excessive rental choices can hurt your claim.
- Check whether your own policy includes rental-reimbursement coverage. That can speed replacements and reduce disputes.
- Mitigate your losses. Don’t delay repairs or refuse reasonable rental options to inflate days of loss of use.
- Send a clear, dated demand letter to the at-fault driver’s insurer listing your loss-of-use damages and attaching proof.
- Keep a written log of alternative transportation you used and why it was necessary.
- If the insurer questions your daily rate, be ready to show local rental market rates or similar vehicle listings.
- When in doubt, ask a licensed Alaska attorney about your rights, deadlines, and likely recovery.
If you want, I can provide a short checklist you can print and use to document loss-of-use damages after an accident.