What Does Loss of Use Cover After an Accident or Theft?

Being involved in a car accident or waking up to find your vehicle stolen is stressful enough. What adds to the burden is figuring out how to get around while your car is being repaired or replaced. That’s where loss of use coverage comes in—it helps cover the cost of temporary transportation during the time your vehicle is unavailable due to a covered claim.

This matters when you're thinking about how you’d continue daily life if your car were suddenly taken off the road. You might think about this the next time you renew your policy or consider whether to add optional coverages that protect your routine, not just your car.

What Loss of Use Covers

Loss of use coverage, also known as transportation replacement coverage, helps you pay for alternate transportation when your vehicle is being repaired or replaced after a covered loss. It applies in the following scenarios:

Collision repairs
If you’re involved in an accident—regardless of who is at fault—and file a collision claim, loss of use coverage helps pay for a rental or other transport while your car is fixed.
Comprehensive claim events
Events like theft, vandalism, hail, or fire that fall under comprehensive coverage may also trigger your loss of use benefit.
Total loss situations
If your vehicle is written off, the coverage may continue until you receive a settlement or a replacement vehicle.

Covered expenses typically include:

Rental car fees
Public transit costs
Taxi or ride-share fares (e.g., Uber or Lyft)

Type of Claim	Does Loss of Use Apply?	Covered Expenses
Collision damage	Yes	Rental car, transit, taxi, ride-share
Theft of vehicle	Yes	Rental car or alternative transit
Mechanical failure	No	Not covered
Scheduled service	No	Not covered

Tip: The coverage only activates after a covered claim. It does not apply during routine repairs, engine failure, or maintenance.

What’s Not Covered

Even with loss of use coverage in place, there are limits on what’s reimbursed. Typically, the policy includes:

A daily maximum (e.g., $40–$50 per day)
A total maximum payout (e.g., $1,000–$1,500 per claim)

You will be responsible for any costs that go beyond those limits. Additionally, luxury or upgraded rental vehicles are generally not covered unless you pay the difference.

Note: Expenses only qualify while your vehicle is actively being repaired or during the window between theft and settlement.

When This Coverage Can Be Invaluable

Loss of use coverage is particularly helpful if:

You don’t have a second vehicle or car-sharing option
It allows you to maintain independence and mobility without added financial strain.
You need reliable transportation for work or caregiving
Daily obligations don’t pause when your car is out of commission—this coverage helps keep your life moving.
Your car is high-value or slow to repair
Some vehicles take longer to fix, and having coverage means you won’t face unexpected rental bills while you wait.

Caution: Always check the conditions around when coverage starts and ends. Some insurers require the car to be in an approved repair facility before benefits begin.

A Simple Add-On That Solves a Big Problem

Loss of use coverage fills a gap that many drivers don’t consider until they’re in a difficult situation. It’s a small monthly cost that can make a big difference in keeping your life on track after an accident or theft. If you rely heavily on your vehicle, this coverage offers more than convenience—it provides continuity.