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Rental Car and Loss-of-Use Demand Letter

By Serdar Arslan, editor · Last reviewed November 3, 2026 · How we research

Use this letter when the other driver's insurer has paid less for your rental than you spent, cut the rental off before your car was ready, capped the daily rate below what a comparable car costs, or refused loss of use because you did not rent. It goes to the liability insurer handling your property damage claim.

The letter states the dates your car could not be driven, the daily rate and how you got it (receipts or comparable quotes), what has been paid, and the balance. If part of the period was spent waiting for the insurer to inspect the car, approve repairs or issue payment, say so and attach the emails or call notes that show it. The free rental car and loss-of-use calculator on this site works out the days and the difference for you.

Attach the repair invoice showing drop-off and pickup dates, rental receipts or two or three written quotes for a comparable car, and any correspondence about delays. Keep the letter limited to rental and loss of use so it does not settle the rest of your claim.

[Your full name]
[Your mailing address]
[Your phone number]
[Your email address]

[Date of this letter]

[Adjuster name]
[Insurance company name]
[Insurance company address]

Re: Rental and loss-of-use claim
Claim number: [Claim number]
Your insured: [Insured driver's name]
Date of accident: [Date of the accident]
My vehicle: [Your vehicle (year, make, model)]

Dear [Adjuster name]:

I am writing about the rental and loss-of-use portion of my property damage claim.

My vehicle could not be driven from [Date your car could no longer be driven] until [Date the period ended], when [What happened on that date]. I am claiming [Number of days claimed] days.

Delays during this period that I did not cause: [Delays you did not cause (dates and what you were waiting for)]

Daily rate: [Daily rate claimed]. [Basis for the daily rate]

  Total claimed:          [Total claimed (days x daily rate)]
  Paid to date:           [Amount the insurer has paid so far]
  Balance requested:      [Balance requested]

If your company applied a daily limit or ended payment on a particular date, please explain in writing the basis for that decision and, if you contend a comparable vehicle was available at a lower rate, identify where.

Please pay the balance or explain in writing, item by item, why any part is denied. I ask for your response by [Requested response date].

This letter concerns rental and loss of use only. It does not settle, release or waive any other part of my claim, including repair costs, diminished value or bodily injury.

Enclosures: [Enclosures]

Sincerely,


[Your full name]

Tips

Count calendar days from the day the car became undrivable to the day it was ready, and remove any days of delay you caused.
If you did not rent, get written quotes for a vehicle like yours from two or three local rental locations and attach them.
Your own policy's rental reimbursement has its own daily and per-claim limits. If you used it, tell the other insurer so payments are not duplicated, and claim only the difference you paid.
Put every request for an inspection, approval or payment in email. Those messages are the best proof of who caused a delay.
If the insurer will not pay and the amount is modest, small claims court is one option. Check your state's filing deadline first.
Do not sign a property damage release that also mentions bodily injury unless your injury claim is finished.

Sending it and keeping proof

Keep a copy of everything you send. If a deadline or a response time matters, send letters by a method that gives you proof of delivery, such as certified mail with a return receipt, or email with a read receipt, and note the date in your claim file. Many insurers and agencies also accept uploads through an online portal, so save the confirmation screen or email.

Rental Car and Loss-of-Use Demand Letter

Tips

Sending it and keeping proof

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