How to Claim Compensation for Loss of Use of a Vehicle in Portugal

Short answer

You may claim compensation for loss of use of a vehicle when, because of an accident attributable to another party, you cannot use your car, motorcycle or other vehicle for a relevant period. The request should be made in writing to the responsible insurer, identifying the claim, the immobilisation period, the need to use the vehicle and the available evidence.

Loss of use can be claimed even if you did not rent another vehicle. However, the better you document how you normally used the vehicle and the disruption or costs caused by the immobilisation, the stronger the claim becomes. If the insurer has accepted exclusive liability, Article 42 of Decree-Law no. 291/2007 provides for a replacement vehicle with similar characteristics, subject to the legal conditions.

Important note: this article is general information. Compensation always depends on fault, evidence, duration of immobilisation, insurer communications and the specific facts.

What is compensation for loss of use?

Loss of use is the damage caused by being unable to use your vehicle because of the accident. It is not just the repair cost. It is the temporary loss of the practical utility that the vehicle provided.

Unable to travel to work normally.
Having to rely on relatives for transport.
Paying for taxis, ride-hailing or public transport.
Difficulty taking children to school or attending medical appointments.
Inability to use the vehicle for professional activity.
Loss of autonomy while the insurer assesses, repairs or pays.

Portuguese courts have recognised that being deprived of the use of a damaged vehicle may constitute a separate recoverable damage when the injured party proves both the deprivation and the normal use of the vehicle.

When can you claim it?

There was a road traffic accident.
The vehicle was immobilised or unsafe to drive.
Liability belongs to another driver or insured entity.
The insurer did not provide a replacement vehicle or delayed settlement.
You can show that you used the vehicle and that its absence caused loss or disruption.

If you are still at the beginning of the claim, see the Portuguese road traffic accident guide and the guide on how long an insurer may take to pay compensation.

How to request compensation: step by step

1. Ask for a replacement vehicle immediately

If the vehicle is immobilised, ask the insurer for a replacement vehicle in writing and keep proof of the request. If the insurer should have provided one and did not, that may strengthen the compensation claim.

2. Record the immobilisation date

Keep evidence of when you stopped being able to use the vehicle: towing report, repair-shop statement, inspection report, total loss communication, photographs or emails.

3. Prove how you used the vehicle

Explain and document the vehicle's normal use: commuting, school runs, medical appointments, professional travel, tolls, fuel, parking, employer statements or professional activity as a driver, courier, salesperson or technician.

4. Keep receipts for alternative transport

Keep invoices and receipts for rentals, taxis, public transport, ride-hailing, paid lifts, towing, parking or other replacement transport. Even without rental receipts, loss of use may still be discussed, but documents make the claim more concrete.

5. Quantify the period claimed

The claimed period may run from the accident to repair, from immobilisation to a replacement vehicle, from total loss communication to payment of adequate compensation, or another period justified by the evidence and insurer conduct.

6. Send a written request to the insurer

Include the claim number, registration plate, accident date, responsible vehicle if known, immobilisation date, habitual use, request for a replacement vehicle or compensation, supporting documents and a deadline for written reply.

7. Do not sign a discharge without checking what it includes

Before accepting a global offer, check whether it includes repair, total loss, market value, salvage, loss of use, transport expenses, parking, towing and any personal injury items. See also the guide on documents to request before signing a settlement.

Template request to the insurer

Subject: Request for compensation for loss of use of vehicle - claim no. [insert]
Following the accident on [date], involving vehicle registration [plate], I request settlement of the loss of use of the vehicle. The vehicle has been unable to circulate since [date] as a result of the accident damage. Since then, I have been deprived of normal use of the vehicle, which was used for [describe use]. I request a replacement vehicle with similar characteristics or, if that is not possible, compensation for loss of use for the immobilisation period. I attach the relevant documents and request a written, reasoned reply.

How much can be claimed per day?

There is no single legal table. The value may be based on the rental cost of an equivalent vehicle, concrete transport expenses, proven loss of income, equitable assessment by a court, the duration of immobilisation, the type of vehicle, personal or professional use and the insurer's conduct.

What if the insurer says it only pays if I rented a car?

Renting a replacement vehicle helps evidence the loss, but it is not necessarily the only way to prove loss of use. It is prudent to gather concrete evidence of habitual use, transport needs, expenses, emails, documents and witnesses.

What if the vehicle was declared a total loss?

Total loss does not automatically remove the issue of loss of use, but it changes the period to be analysed. Relevant questions include when the total loss proposal was made, whether the market value and salvage were correctly calculated, whether enough money was made available to replace the vehicle and whether the injured party remained without transport during the settlement. Related Portuguese guides: total loss vehicle proposal and challenging the market value attributed by the insurer.

What if the insurer has not accepted fault yet?

If liability is still disputed, the insurer may refuse a replacement vehicle at that stage. Even so, document the immobilisation, your need for the vehicle, requests sent to the insurer, refusals and alternative transport costs. If liability is later established, loss of use may form part of the overall compensation discussion. See also the Portuguese guide on insurer delay or refusal after a road traffic accident.

Documents to gather

Accident statement or police report.
Inspection report and repair estimate.
Repair-shop declaration of immobilisation.
Emails and written requests sent to the insurer.
Insurer replies and refusal letters.
Receipts for alternative transport or rental.
Proof of professional activity dependent on the vehicle.
Evidence of habitual journeys and photographs of the vehicle.
Total loss proposal and any settlement/discharge text.

Cases where the claim is usually stronger

The claim tends to be stronger where the vehicle was needed daily or professionally: workers who need a vehicle for professional travel, families with school runs, people with regular medical appointments, drivers, couriers, mobile technicians, motorcyclists who use the bike as normal transport, company vehicles and prolonged insurer delay without clear justification. If the accident involved a motorcycle, see the Portuguese guide on motorcycle accidents.

Common mistakes

Only asking by phone and leaving no written record.
Not requesting a replacement vehicle.
Not proving the immobilisation date.
Not explaining how the vehicle was used.
Accepting a global offer without checking loss of use.
Confusing loss of use with lost profits.
Signing a full and final discharge without analysis.

When can it be useful to speak with a lawyer?

Legal analysis may be useful where the insurer refused loss of use, the vehicle was immobilised for a long time, there was a total loss and you dispute market value, the vehicle was needed for work, the insurer did not provide a replacement vehicle, liability is disputed, the offer is global and unclear, or there are injuries, sick leave or income loss.

Had an accident and were left without a vehicle?

If the insurer refused a replacement vehicle, delayed repair, declared total loss or sent an unclear global offer, you can request contact to understand which documents may be relevant.

Request contact about a road traffic accident

Frequently asked questions

Is loss of use always compensated?

No. It depends on liability for the accident, vehicle immobilisation, habitual use, the duration of the loss of use and the evidence presented.

Do I have to rent a car to claim compensation?

Not necessarily. Renting a car helps prove the loss, but Portuguese case law has recognised loss of use as a separate damage where the injured party proves that they were deprived of a vehicle they normally used.

How is the daily amount calculated?

There is no fixed statutory daily amount. The assessment may consider comparable rental costs, actual transport expenses, lost income, the type of vehicle, the duration of immobilisation and equitable criteria.

What if the vehicle was declared a total loss?

In total loss cases, it is important to review when the insurer made adequate compensation available and whether the market value, salvage deduction and proposal were properly explained.

Sources and external references

Final note

This article is general information and does not constitute legal advice. Compensation for loss of use depends on evidence, insurer communications, liability, immobilisation time and the concrete circumstances. No result is promised.