What type of expense does Jonathan incur by renting a car while his is being repaired after the accident?

When Jonathan rents a car while his own vehicle is being repaired after an accident, he incurs an indirect loss. This situation arises from the fact that Jonathan has to spend money on renting a car because he cannot use his own vehicle, which is currently inoperable due to the accident.

Indirect losses, also known as consequential losses, are those that occur as a result of a direct loss, such as the inability to use an asset. In this case, Jonathan’s direct loss is the damage to his car, while the rental expense is a secondary consequence of that damage. Indirect losses do not involve physical damage to property; instead, they stem from the implications of that damage.

Understanding this distinction is crucial for recognizing how different types of losses are categorized in insurance terms. The other choices refer to different concepts in risk and loss management, not applicable to the rental situation that Jonathan faces after his accident.