03/09/2026
That is an excellent tip from one of our customers on deciding on whether you choose to buy the insurance when renting a car. She knew her car insurance covered if the car was damaged but the rental agent said she would be liable for the time the car would not be in use.
This charge is known as "Loss of Use," and it represents the income a rental agency loses while a car is in the shop and cannot be rented to others.
Key Facts About "Loss of Use" Coverage
Personal Auto Insurance: While most personal policies cover physical damage to a rental car, they frequently exclude "Loss of Use" and administrative fees.
Credit Card Benefits: Many Visa Signature and Visa Infinite cards specifically include "Loss of Use" as part of their Auto Rental Collision Damage Waiver.
The Catch: To trigger this coverage, you must decline the rental agency's collision damage waiver (CDW/LDW) and pay for the entire transaction with that specific card.
How to Confirm Your Coverage
Before you rent a vehicle, you can verify this by checking your card's "Guide to Benefits" or calling the number on the back of your card.
