Detailed answer: What “loss of use” means and how Arkansas law treats it

“Loss of use” (sometimes called “loss of use of personal property”) means the value you lose when you cannot use your vehicle after a crash because it’s being repaired or replaced. Under Arkansas law, loss of use is a compensable element of damages in a tort/property-damage claim if you can prove the vehicle was unavailable due to the at-fault party’s conduct and you suffered a monetary loss as a result.

Arkansas does not require a single fixed formula; courts and insurers evaluate reasonableness based on the facts: how long your car was unavailable, whether you reasonably mitigated your losses, and the fair market cost to rent or replace the use of a similar vehicle. To learn more about state statutes and court procedures, see the Arkansas Legislature’s code search and the Arkansas judiciary information pages:

• Arkansas Code and legislative resources
• Arkansas Courts (procedures and forms)
• Arkansas Insurance Department

Who can recover loss of use?

The vehicle owner is the usual claimant. If you do not own the vehicle but had lawful use (for example you leased or borrowed the car and had a contractual right to it), you may have a claim, but proof of your possessory or contractual interest is important.

Against whom do you claim?

You can pursue loss of use from:

• The at-fault driver (a third-party liability claim).
• The at-fault driver’s insurance company (file a claim under the other driver’s liability policy).
• Your own insurer if you have rental reimbursement or loss-of-use coverage (check your policy limits and terms).

How to prove loss of use — evidence you must collect

1. Repair records and timelines: estimates, invoices, and repair shop communications showing the dates your vehicle was inoperable or unavailable.
2. Proof of actual rental costs: receipts for a rental car or similar replacement transportation costs (rideshare, taxi, extended rental, or payments to a friend if reasonable and documented).
3. If you didn’t rent a replacement, evidence of the reasonable rental rate for a comparable vehicle in your area (compare local rental companies’ rates for the relevant dates). Keep screenshots, invoices, and quotes.
4. Photos and police reports documenting the accident and damage.
5. If the vehicle was totaled: records showing the date you accepted the total-loss settlement and the date you obtained a replacement (loss of use is usually measured until the date you reasonably replaced the vehicle).
6. Proof you mitigated damages: evidence you tried to limit your loss (e.g., you obtained comparable rental quotes, returned the rental when repairs finished, etc.).

Common methods of calculating loss of use

There are three commonly accepted approaches; pick the one best supported by evidence in your case:

• Actual rental cost: Total of documented rental bills for a comparable vehicle for the period your car was unavailable.
• Reasonable daily rental rate: Daily fair-market rental rate for a comparable vehicle multiplied by the number of days the vehicle was unavailable (use local rental-company published rates or receipts from similar rentals).
• Fair-value approach: If there’s no rental available, courts sometimes award a daily value based on replacement value or diminished use value — but courts will require proof that the daily figure is reasonable.

Practical steps to file the claim in Arkansas

1. Immediately document the accident: take photos, get the police report, and exchange information with the other driver.
2. Get a written repair estimate and keep all repair shop communications showing when repairs started and finished.
3. If you rent, keep every rental receipt and the rental agreement that shows vehicle type and rate.
4. Send a written demand to the at-fault driver’s insurer explaining the loss of use claim, attaching your evidence and a clear calculation. Keep copies of everything you send.
5. If the other insurer denies or lowballs the claim, consider filing in small claims/district court if your loss is within the court’s monetary limits. For larger claims, discuss filing a civil suit with an attorney. Arkansas court information and forms: https://www.arcourts.gov/
6. If your insurer is handling the claim (rental reimbursement or first-party claim), follow your policy’s claim procedures and document denials or delays from the insurer; the Arkansas Insurance Department can assist with complaints: https://insurance.arkansas.gov/

Timing: statute of limitations and deadlines

Arkansas has time limits for bringing civil actions for property damage. Missing the applicable deadline can bar your lawsuit, so act promptly. For details and exact statutory language consult the Arkansas Code and consider speaking to a lawyer as soon as reasonably possible: https://www.arkleg.state.ar.us/.

When to hire an attorney

Consider consulting an Arkansas attorney if:

• The insurer refuses to pay a reasonable loss-of-use amount.
• You have complex coverage issues (multiple insurers, commercial vehicles, leased vehicles).
• Your documented loss is large or you expect litigation.
• There are disputes about who was at fault or about the reasonable duration of loss.

An attorney can evaluate damages, prepare a demand, and file suit if necessary. Search for attorneys or contact your local bar association for lawyer referrals.

Helpful Hints — tips to strengthen a loss of use claim in Arkansas

• Start collecting evidence immediately: photos, police report, repair-shop estimates, and any rental receipts.
• Keep a daily log noting when you were unable to use the vehicle and what alternative transportation you used and why.
• If you rent, choose a rental that is comparable to your vehicle. Insurers may dispute excessive upgrades or luxury models.
• Get written timelines from the repair shop (start date, expected completion, actual completion date).
• Obtain multiple rental quotes to show the prevailing local rental rate if you did not rent a vehicle.
• If your vehicle is leased, notify the leasing company and keep correspondence; lease obligations can affect loss-of-use claims.
• Respond to insurer requests promptly and keep written records of all communications (email is best for an audit trail).
• If you keep the rental beyond the repair shop’s completion date, be prepared to justify the extra days (for example, delays in parts or transportation issues). Otherwise insurers may deny payment for unreasonable days.
• Document mitigation: if you used rideshare or a friend’s vehicle, keep receipts or a written agreement about any payments made.
• Know the limits of small-claims court in your county before filing; district/circuit court may be required for larger claims. Arkansas Courts: https://www.arcourts.gov/