After a car accident, many Nebraska drivers hear the term “loss of use” from insurance adjusters or repair shops — but few truly understand what it means or how it affects their compensation.
At Inkelaar Law, our Omaha auto accident lawyers help clients navigate every aspect of their claim, including this often-overlooked category of damages. Understanding how “loss of use” works under Nebraska law can make a major difference in your total financial recovery.
“Loss of use” refers to the financial loss you experience when your vehicle is unavailable after a crash. Simply put, it’s compensation for the time you couldn’t use your car while it was being repaired or replaced.
Even if your car wasn’t drivable — or was declared a total loss — you may still be entitled to claim compensation for that period of inconvenience.
Examples of Loss of Use Damages
Loss of use can cover a variety of costs, including:
Rental expenses while your vehicle is being repaired
Loss of convenience or enjoyment when you cannot use your personal vehicle
Lost income if your vehicle is essential for work or deliveries
Delay in replacement if your car was totaled and you needed time to purchase another one
Even if you didn’t rent a replacement vehicle, Nebraska law allows you to recover the reasonable rental value for the period your car was unusable.
Loss of use claims in Nebraska typically fall into two main categories. Understanding the difference can help you know which insurance company is responsible for paying your damages.
1. First-Party Coverage
If your own insurance policy includes rental reimbursement or loss-of-use benefits, your insurer may cover the cost of a rental car up to your policy limits while your vehicle is repaired or replaced.
2. Third-Party Claims
If another driver caused the crash, you can file a third-party claim against their insurance company for the period your car was out of service.
However, these claims often require strong evidence and detailed documentation. Insurance companies frequently challenge loss of use claims or try to minimize their value, which is why many drivers rely on legal guidance to handle the process.
When you’re recovering from a crash, it’s natural to focus on vehicle repairs or medical bills. However, loss of use is a legitimate category of damages that can significantly increase your total recovery.
Here’s why Inkelaar Law’s Omaha auto accident team emphasizes this important part of your claim:
1. It’s a Recognized Damage Under Nebraska Law
Nebraska law allows recovery for “the reasonable value of the plaintiff’s loss of use of his or her property.”
That means it’s part of your economic damages — not an extra or optional claim.
2. It Requires Proper Documentation
To be successful, your claim should include proof of:
How long your vehicle was unavailable
Why you needed a substitute vehicle
The replacement or rental costs you incurred
Without these details, insurance companies may deny or reduce payment.
3. Nebraska’s Comparative Fault System Applies
Nebraska follows a modified comparative negligence rule.
If you’re found partially at fault, your compensation can be reduced proportionally. If you’re 50% or more at fault, you can’t recover damages.
That’s why documenting each element of your claim — including loss of use — is essential to maximize your compensation.
While Nebraska doesn’t have a detailed statute that defines how to calculate loss of use, courts consistently recognize it as a valid and recoverable claim.
Key Points to Know:
Loss of use is considered part of your property damage.
Nebraska requires a minimum of $25,000 in property damage coverage, which may apply to your loss of use claim.
If your car is totaled, you may recover compensation for the reasonable replacement period, not an indefinite timeline.
Example Scenario:
Imagine you’re rear-ended in Omaha. Your vehicle spends 14 days in a repair shop. During that time, you:
Rent a car at $55 per day, totaling $770
Miss important work appointments and personal commitments
Experience significant inconvenience
In this situation, you could claim both your rental costs and compensation for the reasonable value of time without your vehicle — assuming you were not at fault.
Even experienced drivers misunderstand how loss of use works. Here are some common myths — and the truth behind them:
1. “It Only Covers Rental Car Costs”
Not necessarily. You can still recover compensation even if you didn’t rent a vehicle. The law allows claims for the reasonable rental value of the time your car was unavailable.
2. “My Insurer Will Automatically Pay”
Loss of use isn’t automatic — it must be requested and documented as part of your property damage claim.
3. “It Doesn’t Apply to Business Vehicles”
If your vehicle is used for business, delivery, or ridesharing, your loss of use may carry greater financial value. Strong documentation is key.
4. “Every State Calculates It the Same”
Each state uses different methods. Nebraska’s approach focuses on reasonableness and fairness, which makes local legal experience especially valuable.
Taking the right steps after your accident can strengthen your claim and help you recover faster:
1. Gather Information at the Scene
Collect the at-fault driver’s:
Name
Contact information
Insurance details
Also, take clear photos of the accident and your vehicle’s damage.
A police report helps confirm what happened and is required in Nebraska if property damage exceeds certain limits. It also provides crucial support for your claim.
3. Notify Insurance Companies
Inform both your insurer and the at-fault driver’s insurer that you are seeking compensation for loss of use.
4. Document Repair Timelines
Ask the repair shop to verify:
When they received your vehicle
When repairs started and finished
Keep all receipts, rental agreements, and correspondence.
5. Rent a Comparable Vehicle
Insurers typically cover only reasonable rentals, meaning a vehicle similar in class and value to your own.
6. Track the Impact on Your Life
Document how being without your vehicle affected your daily routine, work, or family responsibilities. Even minor inconveniences support your claim’s validity.
Working with experienced Omaha auto accident lawyers helps ensure your claim includes every compensable element — from repairs and medical bills to loss of use and diminished value.
8. File Promptly
Delays make it easier for insurers to argue your claim isn’t reasonable. Filing quickly and providing accurate records strengthens your position.
Our team has handled countless auto accident cases in Omaha and across Nebraska. One of the most common issues we see is the undervaluing of loss of use claims.
Here’s what experience has taught us:
Reasonableness matters most. Your rental or replacement time must reflect how long it reasonably took to repair or replace your car.
Business vehicles often qualify for higher amounts. Clear records of lost income or productivity are critical.
Total losses differ from repair claims. You can usually recover loss of use only for the time needed to purchase a replacement.
Loss of use isn’t the same as diminished value. You can claim both — one covers time lost, the other covers reduced resale value.
Having a local legal team that understands Omaha’s rental rates, repair timelines, and insurer practices can make your claim far more persuasive.
Q1: Can I claim loss of use if I rent a luxury vehicle?
Generally, no. Insurance companies only cover the reasonable cost of a comparable car.
Q2: What if my car was drivable but unsafe?
If a repair shop or adjuster determines your vehicle wasn’t safe to drive, you can claim loss of use during that period.
Q3: Is loss of use automatically included in my settlement?
No. It must be specifically listed and supported with documentation.
Q4: How long can I claim loss of use for?
Only for the reasonable repair or replacement period. Longer claims require justification.
Q5: Does it increase my settlement amount?
Yes. When properly documented, loss of use adds fair compensation that might otherwise be overlooked.
At Inkelaar Law, we understand that every detail matters after a car accident — including the time you spend without your vehicle.
Our Omaha auto accident team brings:
Decades of combined experience handling Nebraska car accident claims
In-depth knowledge of insurance company tactics and Nebraska law
Clear communication and compassionate client support
A proven record of helping clients secure the compensation they deserve
If you’ve been injured in a car accident in Nebraska — whether in a parking garage or on the road — don’t wait to get help.
Contact Inkelaar Law today for a free consultation.
You can call us or easily schedule your appointment online. Our friendly intake team is ready to guide you through the process, answer your questions, and connect you with one of our experienced Omaha auto accident attorneys.
Disclaimer: The information contained in this article is for general educational purposes only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation. For specific legal advice, please consult with an attorney who is qualified to handle your case.
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