Short Answer

In North Carolina, the at-fault driver’s liability insurer is generally responsible for your reasonable rental ("loss of use") once they accept fault. If liability is not accepted right away, use your own policy’s rental reimbursement or collision coverage to avoid delays, and your insurer can seek repayment later. If the other driver is uninsured, your uninsured motorist and any rental reimbursement coverage on your policy may apply. Choose the option that gets you a comparable car now with the least out-of-pocket risk.

Understanding the Problem

You want to know whether to get a rental car through your own insurer or the other driver’s insurer after a North Carolina crash. The issue is a single decision point: who should provide and pay for the rental while your vehicle is down. You are the injured driver, asking whether you can or must proceed through your carrier or the other driver’s carrier after a collision; the other driver was unlicensed. This choice affects how fast you get a car, who pays upfront, and what limits apply.

Apply the Law

Under North Carolina law, the at-fault driver owes “loss of use” of your vehicle, which typically means covering a reasonable, comparable rental for the reasonable repair time or until a total-loss settlement is made. Insurers usually authorize rentals only after they determine fault and confirm the repair status or total loss. Your own auto policy may include rental reimbursement coverage with daily and total caps, and collision coverage can move repairs forward while your insurer pursues the other carrier. If the at-fault driver is uninsured, your uninsured motorist coverage and your rental reimbursement endorsement (if purchased) can bridge the gap. Claims are handled with the insurance companies (not the court) unless a lawsuit becomes necessary; notify your insurer promptly as your policy requires.

Key Requirements

• Fault is reasonably clear: The other insurer typically pays rental only after accepting their driver caused the crash.
• Loss of use: You need a comparable rental while your car is being repaired or until a total-loss settlement; the duration must be reasonable.
• Reasonableness and mitigation: Keep costs reasonable (car class, daily rate, and timing). Declining a comparable offer or choosing upgrades can reduce reimbursement.
• Documentation: Provide claim details, police report info, estimates, repair status, and receipts to support rental duration and cost.
• First-party options: If the other carrier delays or denies, use your policy’s rental reimbursement and/or collision coverage; your insurer can seek reimbursement later.

What the Statutes Say

• N.C. Gen. Stat. § 20-309 (Financial responsibility required) - Requires North Carolina vehicle owners to maintain liability insurance.
• N.C. Gen. Stat. § 20-279.21 (Mandatory policy provisions; UM/UIM) - Sets required liability and uninsured/underinsured motorist coverage provisions.
• N.C. Gen. Stat. § 58-63-15(11) (Unfair claim settlement practices) - Outlines standards for fair claims handling by insurers.

Analysis

Apply the Rule to the Facts: Because the other driver was unlicensed, there may be delays or a risk they are uninsured. To avoid waiting, open a claim with your insurer and use your rental reimbursement now; your carrier can pursue the other side later. If the other insurer accepts fault, they should pay for a comparable rental for the reasonable repair time or until they make a total-loss offer. Keep the rental class and length reasonable to maximize reimbursement.

Process & Timing

1. Who files: You. Where: Claims department for your insurer and the other driver’s insurer (North Carolina). What: Notice of loss, claim numbers, police report information, repair estimate, request for rental authorization (or use your policy’s rental reimbursement). When: Give prompt notice to your insurer per your policy; contact the other carrier as soon as you have their information.
2. Insurer(s) investigate liability and vehicle status. If the other carrier accepts fault, they typically set up a direct-bill rental. If they delay or deny, proceed under your policy and keep receipts for potential recovery.
3. Return the rental when repairs are finished or shortly after a total-loss settlement is offered. The paying insurer issues payment directly to the rental company or reimburses you within its stated process.

Exceptions & Pitfalls

• If liability is disputed or the other driver is uninsured, you may not get a rental from the other carrier; use your own rental reimbursement to avoid downtime.
• Daily and total caps apply under most rental reimbursement endorsements; upgrades, added fees, and extended rentals may not be covered.
• Using your collision coverage may trigger a deductible initially; your insurer may recover it later from the at-fault carrier.
• Rental typically must be comparable; declining a comparable car or choosing a higher class can reduce or eliminate reimbursement for the difference.
• When your car is declared a total loss, rental usually ends shortly after the settlement offer; keeping the car longer can make charges your responsibility.

Talk to a Personal Injury Attorney

If you’re dealing with rental car issues after a crash and want to protect your injury and property damage claims, our firm has experienced attorneys who can help you understand your options and timelines. Reach out today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.