When Should You Add Loss of Use Coverage to Your Policy?

Loss of use coverage is one of those optional auto insurance benefits that many drivers don’t consider until it’s too late. It helps pay for transportation like rental cars or ride-share services while your vehicle is being repaired after a covered claim. But the key is having it before something happens.

This matters when you're thinking about how you’d get around if your car were suddenly out of commission. You might think about this the next time you update your policy, buy a new car, or recall how disruptive a previous repair left you.

Ideal Times to Add Loss of Use Coverage

Loss of use coverage is typically inexpensive, and it offers valuable support when you need transportation most. Consider adding it if:

You rely on your car for daily commuting or errands
If you can’t easily substitute your vehicle with public transit, this coverage ensures you’re not left stranded during repairs.
You don’t have a second car or access to a backup vehicle
Without another household vehicle to use temporarily, a rental or ride-share becomes essential.
You live in an area with limited transit options
In rural or suburban regions, public transportation may not be a realistic alternative—making rental coverage far more valuable.
You’re driving a newer or financed vehicle
These cars often require dealership or manufacturer-specific repairs that take longer, increasing your downtime and the need for alternate transportation.
You’ve recently increased your collision or comprehensive coverage
If you’ve upgraded your policy to cover physical damage, adding loss of use ensures you’re not just reimbursed for repairs—but for the time and cost of being without your car, too.

Situation	Is Loss of Use Worth Adding?
One-vehicle household	Yes – essential backup
Urban area with strong transit	Maybe – depends on your routine
Long commutes with no alternatives	Yes – avoids major disruption
Driving older vehicle with no collision coverage	No – this benefit only applies to covered claims

Tip: If you drop collision or comprehensive coverage, loss of use no longer applies. It only activates when there’s a covered claim under those sections.

When It Might Not Be Necessary

Loss of use coverage isn’t for everyone. You may be able to skip it if:

You’re already covered by your credit card’s rental insurance
You rarely drive or can easily rely on public transit
You have a spare vehicle available in your household
You’ve removed physical damage coverage entirely from your policy

Add It Before You Need It

You can’t add loss of use after a claim occurs. It must already be active on your policy at the time of the accident or covered event. That’s why it’s best to think ahead—especially if your daily routine depends heavily on your vehicle.

Caution: Don’t wait until your car is already in the shop. Insurers will not backdate this coverage or allow you to apply it retroactively to a current claim.

Small Cost, Big Convenience