Can I recover the cost of a replacement vehicle or a rental car while the insurance claim is being handled? – North Carolina

Short Answer

Often, yes. Under North Carolina law, a not-at-fault driver can typically seek “loss of use” damages for the reasonable cost of a rental vehicle (or the reasonable rental value of a substitute) for the time the truck is unavailable because of the crash. If the truck is treated as a total loss, the recoverable rental period is usually limited to a reasonable time to investigate the loss and obtain a replacement, not an open-ended rental while negotiations drag on.

Understanding the Problem

In North Carolina, after a crash where another driver appears at fault, can the owner of a damaged truck recover the cost of a rental car (or substitute transportation) during the period the insurance claim is being adjusted, especially when the insurer is calling the truck a total loss and the payout may not cover the remaining loan balance?

Apply the Law

North Carolina property-damage claims generally allow recovery for the harm to the vehicle and the practical impact of being without it. One common category is “loss of use,” which focuses on the reasonable cost to rent a comparable substitute vehicle for the time the damaged vehicle cannot be used. The key limits are reasonableness (rate and duration) and mitigation (taking practical steps to avoid unnecessary rental time). If the claim cannot be resolved, the forum is typically North Carolina District Court or Superior Court, depending on the amount in dispute and the claims asserted.

Key Requirements

Liability (fault): The other driver must be legally responsible for causing the crash that took the truck out of service.
Loss of use: The truck must be unavailable to use, and the claimed rental/substitute cost must be tied to that downtime.
Reasonable amount and reasonable time: The rental rate and the length of the rental period must be reasonable under the circumstances, and the claim should reflect practical efforts to keep the loss from growing.

What the Statutes Say

N.C. Gen. Stat. § 99A-1 (Interference with property rights; damages for damage to personal property) – Recognizes a right to recover damages for unlawful damage to another’s personal property, which is the legal foundation for seeking property-related damages after a crash.
N.C. Gen. Stat. § 66-201 (Rental car definitions; “damage” includes loss of use) – Defines “damage” in the rental-car context to include “loss of use,” a concept that commonly comes up when documenting rental charges and downtime.

Analysis

Apply the Rule to the Facts: Here, the other driver appears to be at fault, and the truck is likely not usable while the insurer decides whether it is a total loss and what it will pay. That sets up a typical “loss of use” claim for a reasonable rental vehicle (or the reasonable rental value of a substitute) during the period the truck is out of service. If the insurer confirms a total loss, the rental period usually becomes a “reasonable replacement window,” meaning the claim is strongest for the time needed to confirm the total loss and obtain a replacement—not for an extended rental caused only by back-and-forth over valuation.

Process & Timing

Who claims: The truck owner (and sometimes the lienholder is involved for the total-loss payoff). Where: First through the at-fault driver’s insurance adjuster; if unresolved, in North Carolina District Court or Superior Court. What: A written demand that includes rental invoices, dates the truck was unavailable, and why the rental period was necessary.
Document reasonableness: Keep the rental agreement, daily rate, and proof of payment. Keep proof of the truck’s status (tow/repair estimates, total-loss notice, adjuster emails) to show when the truck became unusable and when the claim could reasonably have been resolved.
Close-out: If the truck is repaired, the rental period typically tracks the reasonable repair time. If totaled, the rental period typically ends after a reasonable time to receive the valuation decision and obtain a replacement vehicle.

Exceptions & Pitfalls

Total loss vs. repair changes the rental window: When a vehicle is repairable, rental time often tracks repair time. When it is totaled, insurers commonly argue rental ends once a reasonable replacement period passes.
Rate and vehicle class disputes: Renting a significantly more expensive vehicle than necessary can lead to partial denial. A comparable, practical substitute is easier to justify.
Delay that looks avoidable: Gaps in communication, missing paperwork, or waiting to start the replacement search can be used to argue the rental period was longer than necessary.
Loan balance vs. vehicle value: Owing more than the truck’s value does not automatically increase what is recoverable for the truck itself, and it can complicate replacement timing. The loss-of-use claim still depends on reasonable rental need and duration, not the remaining debt.

Conclusion

Yes, in North Carolina a not-at-fault driver can often recover reasonable “loss of use” damages, which commonly means the reasonable cost of a rental vehicle while the truck is unavailable because of the crash. If the truck is totaled, the rental period is usually limited to a reasonable time to confirm the total loss and obtain a replacement. A practical next step is to submit rental receipts and a written timeline to the adjuster as soon as the truck is declared undrivable or a total loss decision is made.

Talk to a Real Estate Attorney

If you’re dealing with a total-loss valuation and rental-car costs while an insurance claim is pending, our firm has experienced attorneys who can help you understand your options and timelines. Call us 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.