Loss of use claims: what they cover and how they’re measured

Loss of use is the part of a claim most owners do not know to ask for. It sits beside the repair bill and any diminished value claim, and it is measured in days. This guide covers the general rules and what courts in several states have said. Our loss of use appraisal page explains when Autoloss documents the value of that lost use. This is general information, not legal advice.

Rental reimbursement and loss of use are different claims

One Texas policy form we read shows how narrow the contract version can be. Its rental reimbursement endorsement pays only for a car rented from a licensed rental agency the insurer approves, up to the daily limit and total shown on the declarations page. It also lists time limits, which our guide on the rental car after a total loss offer covers. Your policy may be worded differently, so read your own.

How loss of use is measured

Courts usually look at two things: a daily value, and the number of days.

• California. The state’s civil jury instruction, CACI No. 3903M, tells jurors that to recover for loss of use the plaintiff must prove “the reasonable cost to rent a similar” item “for the amount of time reasonably necessary to repair or replace” it. Its sources include the California Supreme Court’s statement in Valencia v. Shell Oil (1944) that the period is generally the time “reasonably required for the making of repairs.” See the California page.
• Georgia. In Myers v. Thornton (1997), the Court of Appeals said vehicle damage can be proved by the reasonable cost of necessary repairs, “together with hire on the vehicle while rendered incapable of use,” plus any permanent loss in value, with recovery capped at the vehicle’s value before the damage. See the Georgia page.
• Washington. In Grothe v. Kushnivich (2022), a published Court of Appeals decision, the court held that recoverable damages for a car damaged in shipping include loss of use while it was being repaired and diminished value of the repaired car. See the Washington page.

Some states write loss of use into uninsured motorist coverage. Maryland’s statute requires that coverage to include property damage “including loss of use of the insured vehicle,” and Delaware’s defines property damage to include loss of use. See the Maryland and Delaware pages.

Claiming loss of use without renting a car

Many owners borrow a car, take rides or go without, and assume nothing is owed. That is not always so. In J & D Towing v. American Alternative Insurance (2016), the Texas Supreme Court described its earlier decision in Luna v. North Star Dodge as holding that “in order to prove loss of use of an automobile, the plaintiff need not rent a replacement automobile or show any amounts actually expended for alternative transportation.” The measure in that line of cases may be a reasonable rental value by the day, week or month.

Other states may treat an unrented period differently, and courts look closely at whether the time claimed was reasonable. Check your state page, and ask a licensed attorney if the amount is significant.

When the car is a total loss

Some courts once refused loss of use when a vehicle was destroyed rather than damaged. The Texas Supreme Court changed that rule for Texas in J & D Towing, holding that the owner of personal property that has been totally destroyed “may recover loss-of-use damages in addition to the fair market value of the property immediately before the injury,” for a reasonable period. California’s jury instruction cites Reynolds v. Bank of America (1959), which allowed loss of use for a destroyed commercial vehicle during the period needed to replace it. How the rental ends after a total loss offer is covered in our rental car guide.

What counts as a reasonable period

The period usually runs from the accident until the car is repaired, or until a replacement could reasonably be bought. Delays outside your control, such as parts on backorder or a shop’s supplement waiting for approval, are part of the story, so document them. Delays you cause, such as waiting weeks to take the car to a shop, are harder to claim.

Records to keep

• The accident date, the date the car went into the shop, and the date it came back
• The shop’s notes on parts delays and supplement approvals
• Written rental quotes for a comparable vehicle: same class, size and equipment
• Receipts for any rental, rides, transit or mileage on a borrowed car
• For a business vehicle, records showing how it was used and what its absence cost
• Every letter from the insurer about the rental, including when it said payment would end

Where loss of use fits in your claim

Loss of use is usually claimed with the property damage, against the at-fault driver’s insurer. If you also have a diminished value claim, both go in the same demand, and both count against the at-fault driver’s property damage limit. A loss of use appraisal documents the value of the time without a vehicle, which matters most for luxury, specialty and work vehicles that are hard to rent. Send us the dates and your repair records for a free claim review.