After an accident in NC, the at-fault party’s insurance pays for a necessary rental car. A driver’s insurance may allow for a rental even if the driver is at fault.
Horton & Mendez Injury Attorneys discusses what to do if you need a car rental after a car accident in North Carolina.
Understanding Rental Car Coverage After an Accident
After an accident, the cost of a rental car needed during repairs might be covered by insurance.
Whether it is covered by insurance depends on who is at fault for the accident and what insurance coverages each party has.
If the other driver is at fault
When you are not at fault for an accident, the other driver’s insurance typically pays for your car rental during repairs. You need to take the following steps:
- Contact the at-fault party’s insurance company.
- Tell them that your car needs repairs and you need a rental.
- Ask them to cover the cost of the rental.
- If the insurance company agrees, they may pay promptly.
- If the insurance company disputes fault, you may pay for the rental on your own and seek reimbursement.
You may need to prove fault for the accident and the right to compensation. North Carolina is an at-fault state with contributory negligence, so fault is an important factor for all car accident claims.
Typically, the insurance company will cover the rental car up to a certain amount and for a certain number of days. If your costs exceed that amount, you may ask the insurance company to cover the additional expense as loss of use damages.
If you are at fault
If the accident is your fault, there is still the possibility of getting rental car coverage from your own insurance. If you purchased collision coverage or if you opted for rental reimbursement, your insurance may pay for your rental car after an accident in North Carolina. Check your policy to see if you have this coverage. Some people have it, while others do not.
What if my insurance has rental coverage, but the other driver is at fault?
If your insurance has rental coverage for you and the other driver is at fault, an option is to seek reimbursement from your own insurer first. Then, the insurance company can subrogate the expense from the other driver’s insurance.
Rental Cars and Loss of Use Damages in North Carolina
In North Carolina, the cost of a rental car falls under loss of use damages.
Compensation for a car accident in North Carolina is meant to cover losses because of the car accident. Vehicle repairs are a type of loss. Medical bills for injuries are also covered losses.
Another way a person may suffer loss from a car accident is not being able to use their car for a certain period of time. This loss is in the ability to use their property. In an insurance claim, it’s called loss of use.
Note: Loss of use damages may not always be a rental car. It may make more sense or be less expensive to use taxis, rideshares like Uber or Lyft, or public transportation to meet your transportation needs while your car is being repaired. You may seek compensation for these expenses as loss of use damages following a car accident.
Does North Carolina law cover the cost of a rental car after a car accident?
There are no statutes or laws that explicitly require an insurance company to cover the cost of a rental car after a car accident. However, North Carolina law recognizes the right to recover for loss of use. The measure of damages is the cost of renting a similar vehicle for a reasonable time to complete the repairs. While the cost of a rental car may not be statutorily required or even directly covered by insurance, it may be included in a compensation claim (Ling v. Bell, 207 S.E.2d 789 (1974)).
Contesting the amount of a rental car with the insurance company
The reasonable cost of a rental may be a matter of dispute. The insurance company may say the maximum amount is $30 per day, for example. Of course, it may be hard to find a rental car for $30 per day. The amount of time may also be contested. Save receipts and documentation about the nature of repairs and time estimates. You can use this information to request additional amounts as part of your overall claim for damages.
What Happens If Neither Policy Covers Rental Cars?
If neither policy directly covers rental cars, you may rent the car yourself. You may then seek reimbursement as general damages from the insurance of the party at fault. You run the risk of the insurance company disputing fault or otherwise refusing to pay. Knowing the state of your case and whether there is a liability dispute can help you determine how much you want to spend upfront on a rental car after an accident in NC.
Tips for Navigating Rental Car Coverage in NC
- Report the accident to law enforcement and the insurance companies right away.
- Build strong evidence of fault.
- Save documentation about the repair timeline and costs.
- Keep receipts and estimates.
- Review insurance policies for coverage. Not all insurance policies are alike.
- If the insurance company declines to pay for a car rental, or if they won’t cover the full cost, there are things that you can do. You can bring a claim, and a lawyer can represent you.
The cost of a rental car is one type of damage that you may receive following an accident in North Carolina. A lawyer can help you review all possible damages and represent you in your case.
Contact an Experienced Jacksonville Car Accident Lawyer
Do you need help with whose insurance pays for a rental car after an accident in NC? Contact Horton & Mendez Injury Attorneys. We represent people in claims for car accident compensation. Receive a free consultation and see how we can help. Contact us now.
