Short Answer

In North Carolina, you can recover loss of use damages when someone else’s negligence makes your car unavailable. The usual measure is the reasonable rental value of a comparable vehicle for the reasonable time needed to repair the car—or, if it’s a total loss, for the reasonable time to receive a fair total-loss offer and obtain a replacement. You must prove the at-fault driver’s liability, the downtime, and a reasonable daily rate, and you must act reasonably to limit your losses. Even if you did not rent a car, you can typically claim the fair rental value for the period of loss.

How North Carolina Law Applies

Under North Carolina law, loss of use is part of your property damage claim. If your vehicle is repairable, you can seek the reasonable rental value of a similar car for the reasonable time it takes to complete repairs. If your vehicle is declared a total loss, you may recover the reasonable rental value for the period it takes to get a fair total-loss payment and obtain a replacement, as long as you act promptly and reasonably. You must also show the other driver was at fault, your car was out of service, and the amount you claim matches the local market rate for a comparable rental.

Example: If a crash on Monday puts your car in the shop and repairs finish the following Thursday, you can claim about 10–12 days of a reasonable daily rental rate for a similar vehicle. If the insurer totals your car and tenders payment within 10 days, you can usually claim a reasonable rental rate (or mileage/ride-share costs up to that rate) for that time while you replace the vehicle.

Key Requirements

• Liability: Evidence that the other driver negligently caused the collision.
• Unavailability: Proof your vehicle could not be used (e.g., repair estimate, shop order, total-loss letter).
• Reasonable period: Time reasonably needed to repair or to receive a fair total-loss offer and secure a replacement.
• Reasonable rate: Daily rental rate for a comparable car in your area (economy for economy, SUV for SUV, etc.).
• Mitigation: You acted reasonably to limit downtime (promptly scheduling repairs, responding to adjusters, selecting a reasonable rental option).
• Documentation: Invoices, estimates, shop records, photos, police report, and rental quotes or receipts.

Process & Timing

1. Report the claim: Notify the at-fault driver’s insurer as soon as possible and request rental or loss of use benefits.
2. Document downtime: Keep repair estimates, shop start/finish dates, or the total-loss determination letter. If parts are delayed, ask the shop for a written note explaining the delay.
3. Establish a rate: Gather 2–3 local quotes for a comparable rental car (daily rate, taxes, and basic fees). If you rented a car, keep all receipts. If you did not rent, you can still claim the fair rental value.
4. Calculate your claim: Multiply the reasonable daily rate by the reasonable downtime. For totals, use the period until the insurer reasonably tenders a fair offer and you can replace the car.
5. Send a demand: Provide liability proof, repair/total-loss documents, your downtime calculation, and rental receipts or quotes. Ask the insurer to pay within a set time.
6. Negotiate: Be ready to discuss whether the downtime and rate are reasonable. Provide shop letters confirming repair timelines and parts delays.
7. Escalate if needed: If the insurer refuses to pay a fair amount, you can file suit. Many property-damage-only claims can be filed in small claims or district court. Most claims for vehicle damage must be filed within three years in North Carolina; deadlines can vary by issue, so do not delay.

What the Statutes Say

• N.C. Gen. Stat. § 1-52: Sets a three-year statute of limitations for many injury-to-property claims. For most car-damage claims, time runs from the date of the crash. Specific subsections and accrual rules can vary by issue.
• N.C. Gen. Stat. § 20-309: Requires owners to maintain financial responsibility (liability insurance), which is typically the source of payment for property damage and loss of use caused by an at-fault driver.
• N.C. Gen. Stat. § 20-279.21: Describes required auto liability coverages in North Carolina. Property damage coverage generally pays for repairs or total loss, and may also cover loss of use when the insured driver is at fault.

Exceptions & Pitfalls

• Total loss disputes: When a car is totaled, loss of use may be limited to a reasonable replacement period tied to a fair total-loss payment. Keep records showing how quickly you acted to replace the vehicle.
• Unreasonable rates: Claiming luxury rates for a standard sedan invites reductions. Match the class of your car and use local pricing.
• Excessive downtime: Insurers may deny days caused by your delay (e.g., not authorizing repairs, waiting weeks to pick up the car) or by choosing an unavailable specialty shop without need.
• No double recovery: If the insurer paid for a rental, you cannot also claim those same days at the market rate.
• Commercial use claims: Businesses can sometimes claim lost profits, but they must provide reliable records. Otherwise, the rental-value measure usually applies.
• Diminished value vs. loss of use: These are separate property damages. If repaired cars are worth less than before, you can pursue diminished value in addition to loss of use, with proper proof.
• Interest and fees: You may be entitled to prejudgment interest on property damage; availability and calculation depend on the type of claim and timing. Procedures can change.

Helpful Hints

• Ask the shop for written start and completion dates, and a note explaining any parts or supply-chain delays.
• Get multiple local rental quotes that match your car’s size and features; include taxes and typical fees.
• If you cannot rent, track ride-share, public transit, or mileage costs—these can support your claim up to the fair rental value.
• Communicate in writing with the insurer and confirm phone conversations by email.
• If the insurer totals your car, request the valuation report, comparable vehicles used, and the payment timeline in writing.
• Act promptly. North Carolina has strict filing deadlines for property-damage claims, and delays can reduce loss-of-use days.

Talk to a Personal Injury Attorney

If you’re dealing with a loss of use dispute after a North Carolina car accident, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-313-2737.

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.