Loss of use: what you can claim and how much

Short answer: loss of use is money for the days you could not use your car because someone else damaged it. When you rented a replacement, it is usually the reasonable rental bill. When you did not rent, many states still measure it by what a similar rental would have cost for the time the repair or replacement reasonably took. It is claimed from the at-fault driver's insurer. Your own policy pays rental only if you bought rental reimbursement coverage, and only up to its limits.

What is loss of use?

Loss of use is a category of property damage. When another driver damages your car, the harm is not only the repair bill. You also lose the car for a stretch of time. The law treats that lost time as a loss in its own right.

The common measure is the reasonable rental value of a substitute vehicle for the time reasonably needed to repair or replace yours. A 50-state survey by the law firm Matthiesen, Wickert & Lehrer describes it that way and notes that states differ on the details (loss-of-use summary, 50-state chart). California's civil jury instruction on loss of use of personal property, CACI 3903M, uses the same idea: the reasonable cost to rent a similar item for the time reasonably needed to repair or replace it.

Rental reimbursement vs loss of use: what is the difference?

People use these terms as if they mean the same thing. They do not.

First-party: your own rental reimbursement coverage

Rental reimbursement is coverage you choose to buy. It pays for a rental while your car is out of service after a covered loss, up to a per-day limit and a total limit. Progressive, for example, says its daily limits are typically $40 to $70 per day, with coverage lasting up to 30 or 45 days in total (Progressive). Your limits are on your declarations page.

You can use it even when the other driver caused the crash. That can get you into a rental faster while the other insurer is still looking at liability. If you do, your insurer may later seek that cost back from the other side.

Third-party: loss of use from the other driver's insurer

When the other driver is at fault, their liability coverage pays for the property damage they caused. The Texas Department of Insurance tells consumers that if another driver caused the accident, that driver's insurer will pay for you to rent a car (TDI auto insurance guide). Most liability insurers set up a direct-bill rental once they accept liability. If you rent before they do, keep every receipt.

Can you claim loss of use if you did not rent a car?

Often, but it depends on the state. Some states measure loss of use by reasonable rental value whether or not a substitute was rented. California and Colorado are examples in the Matthiesen, Wickert & Lehrer survey. New York has required an actual replacement rental. If you borrowed a car, took rides, or went without, ask the adjuster in writing how they handle loss of use when no rental was taken.

Total losses are another split. In J&D Towing, LLC v. American Alternative Insurance Corp. (2016), the Texas Supreme Court held that loss-of-use damages are available when property is totally destroyed, reversing an older Texas rule (opinion). Georgia, by contrast, has limited third-party loss of use to repairable vehicles. For your state's rules on related items, start at the diminished value claim state hub.

How much is loss of use per day?

There is no single national daily rate. The amount is usually built from two numbers.

1. The daily rate. What it would reasonably cost to rent a vehicle similar to yours for a day. A pickup is not compared to a compact sedan. Get a written quote or screenshot from one or two local rental counters for a comparable class.
2. The number of days. The days your car was reasonably out of service. On a repair, that is usually from the date the car could not be driven, or the date of the estimate, to the date the shop finished. On a total loss, where allowed, it is usually a reasonable time to find a replacement after the insurer's offer.

Multiply the two. Insurers often push back on the second number. Delays caused by parts back-orders or by the insurer's own inspection schedule tend to be argued about. Delays you caused, like leaving a finished car at the shop, usually are not counted.

What documents support a loss-of-use claim?

Keep a simple file. It makes the claim easy to check.

• The date of the crash and the date the car stopped being drivable.
• The shop's repair start and completion dates, ideally on the final invoice.
• Any notes from the shop about parts delays or supplements.
• Rental receipts, if you rented. Note the vehicle class.
• If you did not rent: one or two written rental quotes for a similar vehicle, and the dates you were without a car.
• Rideshare, transit, or borrowed-car costs, with receipts.
• Your written requests to the adjuster and their replies.

Send the claim in writing. List the daily figure, the dates, and the total, and attach the support. Keep a copy.

How does loss of use fit with the rest of a third-party claim?

On a claim against the other driver's insurer, the property damage claim can have several parts: the repair, the rental or loss of use, towing and storage, and sometimes diminished value. Diminished value is the drop in market value a repaired car carries because buyers see the accident on its history. It is a separate item from loss of use. If you kept the car after repairs, our guide to how to file a diminished value claim walks through it, and diminished value appraisals explains when a paid report is worth getting.

Reclaim's diminished value checks are coming soon. They will not calculate loss of use.

This page is general information, not legal advice about your specific claim. Rules on loss of use differ by state and change over time.