Quick Summary
- Loss of use is a daily charge a rental company may add when a damaged vehicle is off the road and cannot be hired to other drivers.
- Standard damage waivers and basic insurance do not always cover these extra fees, even if they pay for the repairs themselves.
- Reading the small print and choosing strong protection through Hola Car Rentals can reduce the risk of unexpected loss of use bills.
It is easy to imagine the scene. You nudge a concrete pillar in a Las Vegas car park, the bumper takes a scrape and you report it on return thinking the worst case is a repair bill. A few weeks later another line appears on your statement labelled loss of use from your car rental, and the confusion begins.
What loss of use actually means
Loss of use is the income a rental company says it has missed while a damaged vehicle is being repaired and cannot be hired out. Instead of just charging for the repair, the firm may add a daily rate to reflect those days when the car sits unavailable in the workshop or the yard.
The daily amount is often based on a typical rental rate for that category of vehicle, multiplied by the number of days the car is considered out of service. This can quickly add up, especially if parts have to be ordered or there is a waiting list at the body shop after a busy holiday period.
When can loss of use be charged
If the rental agreement allows it, the company can normally claim loss of use whenever damage caused during your hire means the vehicle cannot be rented to someone else. This might be because it is unsafe to drive, does not meet legal standards or is waiting for cosmetic repairs that the brand wants completed before the next customer collects it.
Even relatively modest incidents, such as a cracked bumper or bent wheel, can lead to several days out of action. On popular routes served by partners of Hola Car Rentals, a vehicle taken out of the fleet for a few days around peak dates at a busy airport can represent significant missed revenue.
Does insurance usually cover loss of use
Many drivers assume that if they have taken a damage waiver or basic insurance, all costs related to an incident will be absorbed, but that is not always true. Collision and loss damage waivers typically cover the cost of repairs up to a certain limit and may reduce the excess you have to pay, yet they do not necessarily include loss of use, administration fees or diminished value charges.
Some standalone excess policies and travel insurance products include cover for these additional items, but others exclude them specifically. Credit card benefits can also be limited. That is why it is important to check whether loss of use is mentioned in the policy wording before you rely on it after a bump outside a busy Miami Airport coastline drives hotel or a long day on the freeways.
How Hola Car Rentals helps reduce your risk
Hola Car Rentals focuses on making coverage choices as clear as possible when you book. Many routes offer an All Inclusive+ Rate with maximum coverage baked in, helping to protect you from large repair bills and unexpected extras, subject to the detailed terms of each offer. On selected itineraries you also benefit from free travel insurance of up to 150,000 US dollars and maximum liability coverage of up to 300,000 dollars, adding important layers of financial protection.
By comparing offers on one screen, you can easily see which options include stronger protection, so you are less likely to be surprised by additional charges after returning a vehicle at locations such as the Los Angeles airport collection zone or busy depots that serve city breaks.
Practical steps if a loss of use claim appears
If you receive a bill that includes loss of use, start by checking the rental agreement you signed. Confirm whether such charges are allowed and whether they have been calculated for a reasonable number of days. Ask the rental company for a breakdown, including the dates and the daily rate used, so you understand how they reached the total.
If you have an excess policy or travel insurance that might cover loss of use, contact the insurer promptly, keeping copies of the rental agreement, incident report, repair invoices and correspondence. The more organised your documents, the easier it is for the insurer or your card provider to assess the claim, whether the incident happened after a short city break or a long journey starting from a New York JFK itinerary.
FAQs
Can a rental company charge loss of use for every scratch?
Minor marks that do not remove a vehicle from service are less likely to trigger loss of use, but if the damage means the car cannot be rented safely or does not meet brand standards, the company may be entitled to claim under the agreement you signed. The details vary, so always read the contract carefully at the counter.
How do I know whether my cover includes loss of use?
Look for sections in your policy that mention additional fees, loss of use, downtime or similar terms. If they are not clearly listed as covered items, assume they may be excluded and contact the insurer for written confirmation before you rely on that policy alone.
What if an accident is not my fault?
The rental company will usually charge the contract holder first, then it may recover costs from the at fault party or their insurer. If another driver admits liability and you take detailed information and photos at the scene, this can help your insurer or card provider pursue reimbursement later.
How can I minimise the chance of a loss of use bill?
Drive defensively, avoid tight parking spaces where possible and follow local rules carefully. Combine that with strong protection chosen through Hola Car Rentals and you significantly reduce the risk of facing a large invoice long after you have flown home.
When you book your next journey with Hola Car Rentals, taking a moment to review the protection options means you can explore confidently, knowing you have done everything reasonable to guard against unexpected loss of use charges after your trip.
