What Is a Loss of Use Claim? How Do You File One?

Last Updated on December 29, 2025

Car insurance claims can get confusing fast—especially because there are so many different types of claims. One that surprises many drivers is a loss of use claim, which is a request for compensation for the time you couldn’t use your vehicle after an accident.

Loss of use is most commonly tied to paying for a rental car or other reasonable transportation while your vehicle is being repaired—or while your claim is being settled if it’s a total loss. Below is how loss of use works, when you qualify, and how to file it without delays.

Key Takeaways

• A loss of use claim reimburses reasonable transportation costs (often a comparable rental) while your car is unavailable after an accident.
• Loss of use is commonly paid through the at-fault driver’s property damage claim, while your own policy usually pays through rental reimbursement coverage (with daily/total caps).
• Insurers typically require the rental and timeline to be “reasonable,” so choose a comparable vehicle and document shop dates, estimates, and receipts.
• To avoid delays, ask the adjuster early about covered dates, rental class rules, direct-bill options, and what proof they need for rideshare or transit.

What Is a Loss of Use Claim?

A loss of use claim is a request to be reimbursed for reasonable transportation costs (or the reasonable value of a comparable rental) during the period your car is not available because of an accident.

In practice, loss of use usually shows up in one of two ways:

• Third-party claim: You’re filing against the at-fault driver’s insurance. If they caused the crash, their insurer may pay for your loss of use as part of your property damage claim.
• First-party coverage: You’re using your own policy, typically through rental reimbursement coverage (if you added it). This is often the option when you’re at fault or you don’t want to wait on the other driver’s insurer.

These work similarly (they help you stay mobile), but the rules can be very different. Third-party loss of use is usually based on what’s “reasonable,” while first-party rental reimbursement is often limited by the daily and total caps shown on your policy.

Do You Qualify for a Loss of Use Claim?

You may qualify if your vehicle is undrivable, unsafe, or otherwise unavailable due to covered accident damage—whether you own the vehicle or you’re driving one you’re leasing. The key is that your car can’t reasonably be used for normal transportation while it’s being repaired or evaluated.

Qualification depends heavily on fault and the type of claim:

• If you’re not at fault: You can often seek loss of use from the other driver’s insurer once fault is determined.
• If you’re at fault: You usually won’t get loss of use from the other party. But you may still get rental coverage through your own policy if you purchased the right coverages.

Your Claim Must Be Reasonable

Loss of use reimbursement is generally limited to what’s considered reasonable. Common reasons an insurer may reduce or deny a loss of use request include:

• Renting a vehicle that’s far more expensive than your damaged car (not “comparable”)
• Keeping a rental longer than necessary (for example, long after repairs are finished or after a total-loss settlement is ready)
• Delays caused by missed appointments, incomplete paperwork, or lack of communication

A good rule: choose a rental that matches your vehicle type (sedan for sedan, small SUV for small SUV, etc.), and keep a clear paper trail showing why the vehicle was unavailable during the time you’re claiming.

What Does Loss of Use Pay For?

In most cases, a loss of use claim is tied to transportation replacement costs, such as:

• Rental car charges (daily rate, taxes, and sometimes certain fees)
• Rideshare, taxi, or public transit costs (typically with receipts)
• In some situations, a reasonable “rental value” may be used even if you didn’t rent—but this varies and you should ask the adjuster how they handle it in your state.

Loss of use generally does not cover convenience costs (like food delivery fees because you didn’t have a car) and it usually won’t cover upgrades (like renting a luxury vehicle when your car is a standard commuter car).

How Much Can You Get for a Loss of Use Claim?

The payout depends on whether you’re using the other driver’s insurance or your own policy, plus how long your vehicle is out of service. Insurers commonly base payment on the reasonable cost of a comparable rental for a reasonable repair or settlement period.

Factors that usually impact your amount include:

• Comparable vehicle class: economy, sedan, SUV, pickup, etc.
• Local rental prices: rates vary a lot by city and season
• Days covered: based on repair time or total-loss timeline
• Your policy caps: if you’re using your own rental coverage, your daily/total limits matter

If your insurer declares your vehicle a total loss, your loss-of-use window often ends once the claim reaches a reasonable settlement point. If you’re unsure how total-loss payments work, this is helpful context: how much will my insurer pay for my totaled car?

How to File a Loss of Use Claim

Filing a loss of use claim usually follows the same core steps as any other claim. If you want a bigger picture overview, start here: should you make a claim after a car accident?

1) Document the Accident Thoroughly

Right after the crash (when it’s safe), gather the essentials: photos of damage, the other driver’s information, and witness details. Witnesses can be a big deal in disputed claims, so follow this process: how to get witness statements after a car accident.

Many claims also benefit from a police report, but it’s not always required. Here’s when it matters: do you need a police report to file a claim?

2) Open the Claim and Ask About Transportation Immediately

Once you report the claim, ask the adjuster (in writing if possible):

• Whether they’ll set up a direct-bill rental (so you don’t pay up front)
• What vehicle class they consider “comparable”
• What dates they consider covered (start/end)
• Whether they reimburse rideshare/taxi/transit and what receipts they need

3) Prove Your Vehicle Was Unavailable and Track the Timeline

Loss of use is all about “days without a usable vehicle,” so keep a clean timeline. Helpful documentation includes:

• Repair shop estimate and supplement notes
• Dates the vehicle was dropped off, repair start date, and repair completion date
• If totaled, documents showing when the vehicle was deemed a total loss and when settlement paperwork was completed

4) Submit Receipts and Keep Your Rental Comparable

Keep every receipt (rental invoice, rideshare receipts, taxi receipts, transit passes). Choose a rental comparable to your vehicle to reduce the odds of a “reasonable amount” dispute.

And file promptly. Waiting can slow things down—and claim delays already happen for plenty of reasons. If you’re stuck in limbo, this can explain what’s going on: why is it taking so long to process my claim?

Do All Car Insurance Policies Cover Loss of Use?

No. Loss of use coverage depends on which policy is paying and what coverages you purchased:

• If the other driver is at fault: their property damage liability coverage may pay your loss of use as part of your third-party claim.
• If you’re using your own policy: you usually need to have added rental reimbursement (and you may need collision/comprehensive involved in the claim depending on your insurer’s rules).
• If you only carry liability on your own car: you often won’t have first-party rental coverage unless you added it separately.

If you’re not sure whether you have rental/loss-of-use benefits on your policy, check your declarations page or ask your insurer to confirm your rental coverage limits and rules in writing.

FAQs on Loss of Use Claims

Final Tips to Avoid Denials and Underpayment

• Ask early: confirm daily limits (if first-party), covered days, and what “comparable” means.
• Keep a clean timeline: the strongest claims show exactly when the vehicle was unavailable and why.
• Keep receipts: reimbursements are much easier with clear proof.
• Mitigate delays: respond quickly to adjuster requests and stay in contact with the repair shop.

Loss of use claims can save you from paying hundreds (or thousands) out of pocket while your car is in the shop—just make sure your request is reasonable, well-documented, and tied to a clear repair or total-loss timeline.