What Options Exist for Arranging Transportation If Rental Coverage Ends After a Crash in North Carolina?
What Options Exist for Arranging Transportation If Rental Coverage Ends After a Crash in North Carolina?
Detailed Answer
After a car crash, the at-fault driver’s property-damage liability insurer usually pays for a rental vehicle while your damaged car is being appraised and repaired. North Carolina law calls this benefit “loss of use.” Under N.C. Gen. Stat. § 20-279.21(d1), the carrier must pay the “reasonable cost” of substitute transportation for a “reasonable period of time.” Unfortunately, most insurers cap rental payments at 30 days or until the repair shop declares the vehicle a total loss—whichever comes first. When that clock runs out, you still need to get to work, doctor appointments, and the grocery store. Below are practical, legally supported choices.
1. Ask the Adjuster for a Written Extension
The insurer must handle claims promptly and fairly under 11 NCAC 04.0421.
If repairs are delayed because parts are back-ordered or the carrier’s inspection took weeks, point that out and request more rental days in writing. Provide the body-shop timeline or parts-order emails as proof.
Document every phone call and email. Clear records increase the chance the North Carolina Department of Insurance will intervene if the carrier refuses an objectively reasonable extension.
2. Pay for the Rental Yourself and Seek Reimbursement (Loss-of-Use Damages)
North Carolina recognizes loss-of-use damages even after the insurer stops paying. You may submit receipts for continued rental or rideshare costs with your final property-damage settlement demand.
Courts typically award the market rate for a comparable vehicle. Keep every receipt; insurers rarely reimburse cash expenses without proof.
File suit in small-claims court (up to $10,000) if the carrier refuses reasonable reimbursement. Cite § 20-279.21(d1) and the receipts.
3. Use Your Own “Transportation Expense” or “Rental Reimbursement” Coverage
Your policy may provide rental benefits no matter who is at fault. Contact your carrier, pay any deductible, and let your insurer pursue reimbursement (subrogation) from the at-fault company.
This option gets you back on the road quickly and avoids fighting the opposing adjuster over extensions.
4. Negotiate a Cash Settlement for Total-Loss Vehicles
If the vehicle is totaled, North Carolina allows insurers to include up to five extra rental days after they make a “fair cash offer” for your car. See 11 NCAC 04.0421(4).
You can accept the check, buy a replacement vehicle that fits your budget, and end the rental sooner—or ask the carrier to keep paying until you locate a substitute within a reasonable time.
5. Explore Alternative Transportation and Reimbursement Options
Rideshare vouchers. Some insurers will pay Uber or Lyft fees if rentals are unavailable.
Public-transportation or mileage reimbursement. If you temporarily rely on a friend’s car, keep a mileage log; reasonable mileage can qualify as loss-of-use damages.
Gap between repair completion and part delivery. If the shop finished mechanical repairs but must wait for cosmetic parts, ask the carrier to approve releasing the vehicle so you can drive it until final parts arrive.
Helpful Hints
Act quickly. Most rental extensions require advance approval; waiting until the last day often leads to denial.
Know your policy. Add rental-reimbursement coverage before a crash—it usually costs less than a cup of coffee per month.
Shop smart. Choose an economical vehicle; daily rates over $50 may exceed the carrier’s “reasonable” threshold.
Keep records. Save repair-shop emails, adjuster letters, and all receipts. Documentation makes reimbursement almost automatic.
Escalate wisely. If the carrier ignores a reasonable request, file a written complaint with the N.C. Department of Insurance Consumer Services Division. Insurers respond quickly when regulators are copied.
Still battling the insurance company? Understanding the law is only half the fight—using it effectively is the rest.
Let our personal-injury team guide you through the insurance maze, protect your rights, and keep you mobile. Call us today at 919-313-2737 for a free, no-obligation consultation.
