What costs are normally claimed by the Rental Car Provider as "Associated Losses" in the United States?

U.S. Federal Law

ALL Damages in the United States are more than just the cost of repairs to the rental car and generally include "Associated Losses" such as the following:

⚖️ "Loss of earnings" means the lost opportunity to rent the car at the full daily rental rate whilst it is out of service being fixed, even if the Rental Car Provider has lots of other cars available for rent.

⚖️ Towing charges if you are unable to drive the car back to the rental returns area, plus a surcharge if the damaged rental car needs to be towed to somewhere other than where it was due to be returned, that is, a different rental car returns location.

⚖️ "Diminished value" or the potential loss of the car's resale value (because of your damage) when the Rental Car Provider disposes of it, usually within 2 years.

⚖️ Claim Administrative expenses associated with the claims process.

Regardless of what other insurance coverage you already have or can access as an alternative, in the United States, taking up a ridiculously overpriced Rental Car Insurance is the only way to achieve "no up-front payments" whilst at the same time avoiding the risk of not being fully reimbursed.


This FAQ was written by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.

Important Notice:

This FAQ is intended for general interest + information only.

It is not legal advice, nor should it be relied upon or used as such.

We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.