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Glossary

Loss of use

Your loss from being without your car while it is repaired or replaced, often measured by the cost of a comparable rental car for a reasonable time.

Last reviewed By the Editorial team 2 min read

General information, not legal advice. Talk to a licensed attorney in your state.

Quick answer

Loss of use is your loss from being without your car while it is repaired or replaced. It is often measured by the cost of a comparable rental car for a reasonable time.

In a car accident claim#

When another driver caused the crash, a Third-party claim. A claim you make against the other driver's insurance because their driver caused your losses. Glossary against their insurer generally covers loss of use along with the repairs. The Texas Department of Insurance, for example, says the at-fault driver's insurer should pay for your car repair, medical bills and a rental car. The insurer may pay by reimbursing you or by billing the rental company directly.

Disputes are usually about what is "reasonable": the class of car, the daily rate and how many days. Delays for parts, a slow inspection or a Total loss. When an insurer decides a damaged car is not worth repairing, usually because repairs would cost about as much as the car is worth or more. The insurer pays the car's value instead. Glossary decision can stretch the time. Many people ask in writing what the insurer will cover before they rent, and keep the repair shop's notes on any delays. Whether you can claim loss of use without renting a car depends on state law. Your own policy's rental reimbursement coverage is separate and has its own limits. Our guide to property damage and diminished value covers the rest of a vehicle claim.

Example#

Questions people ask

Does my own insurance pay for a rental car?

Only if your policy includes rental reimbursement or similar coverage, and then up to its daily and total limits. If the other driver was at fault, their insurer may owe for the rental instead.

Is loss of use the same as diminished value?

No. Loss of use covers the time you are without your car. Diminished value is the difference between your car's market value before the accident and its market value after repairs, as the Washington insurance commissioner puts it.

Sources

  1. Texas Department of Insurance, Were you in a wreck? Tips for auto insurance claims — what the at-fault driver's insurer should pay
  2. Washington State Office of the Insurance Commissioner, Filing an auto insurance claim — as of October 2026

Last reviewed October 29, 2026 by the Accident Claim Facts editorial team. Found an error? Tell us.

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