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What You Need to Know About Loss of Use Auto Insurance

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Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C.

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Written/Reviewed By:

Barry S. Kantrowitz, Esq.

Last Updated: Apr 27, 2026

Read Time: 4 mins

Even if you do not suffer serious injuries in a car accident, you will likely be inconvenienced by the loss of use of your vehicle while it is being repaired. If you have a loss of use rider, your insurance company will cover rental car costs until your vehicle is repaired.

If you are not sure if your auto policy includes this rider or you do not understand the scope and limits of that coverage, our team of personal injury lawyers from Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. can answer your questions. In addition to helping car accident victims recover the largest available damages award for their losses, we routinely review car insurance policies to confirm that our clients get the benefits they have paid for.

Do All Car Insurance Policies Include Loss of Use Coverage?

Most car insurance companies offer loss of use coverage as an add-on option to the policy’s liability and collision components. If the insured person elects not to add it, the company will not reimburse the cost of a rental car.

How Expensive Is Loss of Use Insurance?

Drivers who pay their premiums monthly might be charged an additional $20 to $50 or more per month for loss of use coverage. However, it also depends on the number of insured cars under the primary policy and the insured party’s address and location.

Does Loss of Use Coverage Reimburse the Full Rental Car Costs?

Loss of use auto insurance pays a limited daily rental car amount, typically in the range of $50 to $100 per day– for a limited number of days and up to a maximum dollar reimbursement. Suppose the insured party requests a more expensive rental car or the repairs to the accident-damaged car take a long time. In that case, the insurance will generally not cover the excess costs above policy limits.

Auto insurers often negotiate special rates with car rental companies and may require an insured party to rent a car from one of them. The insurer then reimburses the rental car company directly instead of the insured party. Loss of use insurance will not pay for fuel or tolls.

Will the Auto Insurer Reimburse You if You Borrow a Friend’s Car or Use Public Transportation?

Reimbursements and applicable rates are specific to the language on the auto insurance rider. In its broadest definition, loss of use auto insurance pays you when you cannot use the insured asset because it has been damaged. Consult with our car accident attorneys if you have any questions about your rights to reimbursements in your auto insurance coverage.

Can You Get Loss of Use Benefits if Your Vehicle Was Totaled in an Auto Accident?

If your vehicle is damaged beyond repair in an auto accident, your insurance company will reimburse the then-current value of the car, less any policy deductibles. You will generally not get both the reimbursement value of the vehicle and loss of use benefits.

How Does Loss of Use Auto Insurance Apply Under No-fault Auto Insurance Rules?

Both New York and New Jersey are no-fault auto insurance states. This means that a driver’s own insurance will reimburse the costs of damage to a vehicle without requiring the driver to seek damages from other parties in an accident. If you have a loss of use rider on your policy, your coverage will apply even if you were at fault for the accident that damaged your car.

What Can You Do if Your Insurance Company Denies Loss of Use Coverage?

All car insurance reimbursements, including loss of use auto coverage, are based on the contractual language of the insurance policy. That language may not be clear, or the insurer might attempt to interpret it in ways that allow them to refuse coverage. If you believe that your coverage has been denied improperly, a car insurance lawyer is your best advocate to fight for the full insurance reimbursement you deserve.

Call the Accident and Injury Lawyers at Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C.

We help injured car accident victims in Rockland and Bergen Counties and elsewhere in New York and New Jersey to recover the full amount of insurance reimbursement they deserve. Please see our website or call us to get answers to your loss of use auto insurance questions and related inquiries from one of our car accident lawyers.

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 23 days ago
 
 
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 87 days ago
 
 
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 90 days ago
 
 
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 96 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I sought legal advice regarding an employment matter and had an excellent experience working with Sam Smith, Esq. at KGG Law. Sam was thorough, attentive, and took the time to listen carefully to my concerns before providing clear, thoughtful guidance. I appreciated the professionalism and care shown throughout the process, and I would confidently recommend KGG Law to anyone in need of legal assistance.
  
 
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 102 days ago
 
 
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   Mike Greenspan 
 138 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate Carballo is a dedicated, passionate, and creative attorney whom I had the pleasure to lecture with at a state trial lawyer's conference. Kate's lecture demonstrated how she uses her innovative and "out-of-the-box thinking" to achieve outstanding results for her injured clients. That Kate is certified by the Supreme Court of New Jersey as a civil trial attorney is a testament to her skills, experience and commitment to excellence.
  
 
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 145 days ago
 
 
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 148 days ago
 
 
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What You Need to Know About Loss of Use Auto Insurance

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Rockland County, New York

Bergen County, New Jersey