Rental Car “Loss of Use” Fees Explained
Updated Oct 24, 2026 · Hannah Breckett · 6 min read
After damage, rental companies may charge for days the car could not be rented. Here is how these fees work.
What this article covers
If a rental car is damaged, the bill may include more than repairs. Rental companies often add “loss of use” fees for the time the car is off the road, plus administrative fees and reduced value.
Not every insurance policy or credit card benefit covers these charges.
What loss of use means
Loss of use is the rental income the company says it lost while the car was being repaired. It is usually calculated from a daily rate multiplied by repair days.
Check your cover
Read your personal car insurance, credit card benefit, or standalone excess policy wording. Look for explicit mention of loss of use and administrative fees. Rental company waivers may cover them, but check exclusions.
If you are charged
Ask for documentation: repair invoice, fleet utilisation records showing the car would have been rented, and the daily rate used. Your insurer or card provider may need these to process a claim.
This is general insurance information, not legal, financial, or insurance advice. Coverage depends on your specific policy, insurer, and jurisdiction. Read your policy documents and speak with a licensed insurance agent or broker before making decisions.