Coverage & liability · Travelers + trade
Loss of use
Also called loss-of-use charge, downtime charge
The short answerA charge for the rental income lost while a damaged car is off the road being repaired.
What it means
Loss of use is a claim the rental company may make after damage, for the time the car can't be rented while it's repaired. It's usually based on the daily rate times the repair days. Some US states ban or limit it, and many damage waivers and card benefits cover it while some don't.
Why it matters
It can add to a damage bill even when repairs are covered. Check whether your cover includes loss of use, and ask for the rental company's records if you're charged.
Related terms
- Diminished valueA claim for the drop in a car's resale value because it's been in an accident, even after repair.
- Damage administration feeA fee for handling a damage claim, charged on top of the repair cost.
- Credit card rental coverageRental car damage cover that some credit cards provide when you pay for the rental with that card.
Also related Repair estimate, Damage dispute