Is the rental car covered as part of the property-damage claim after a crash? – North Carolina

Short Answer

Often, yes. In North Carolina, reasonable “loss of use” damages can be part of a vehicle property-damage claim, and a rental car bill is a common way to prove that loss of use. Whether it is paid directly by an auto insurer, reimbursed later, or handled separately from the injury demand depends on how the claim is being adjusted and what documentation exists.

Understanding the Problem

After a North Carolina crash, can the at-fault driver’s insurance company be required to pay for a rental car while the damaged vehicle is in the shop? When a law firm prepares a demand package, the question usually becomes whether rental charges belong in the property-damage portion of the claim, whether they were already paid through insurance arrangements, and what proof is needed so the demand matches what actually happened.

Apply the Law

Under North Carolina law, vehicle “property damage” is not limited to the repair bill. It can also include reasonable loss-of-use damages for the time the vehicle could not be used because of the collision. A rental car expense is commonly treated as evidence of loss of use, but the amount must be reasonable and tied to the repair or replacement period. Property-damage issues are typically adjusted through the insurance claims process rather than filed in court, unless the claim cannot be resolved.

Key Requirements

Loss of use caused by the crash: The rental (or other loss-of-use claim) must connect to the period the vehicle was unavailable because of collision damage.
Reasonable time period: The rental period should match a reasonable repair timeline (or, if the vehicle is a total loss, a reasonable time to obtain a replacement).
Reasonable amount and documentation: The daily rate and total charges should be reasonable for the situation, and supported by receipts, rental agreements, and repair-shop records.

What the Statutes Say

N.C. Gen. Stat. § 66-201 (Rental car definitions) – Defines “damage” in the rental-car context to include “loss of use,” which commonly appears as rental-related charges.

Analysis

Apply the Rule to the Facts: Here, the vehicle has already been repaired through insurance/body shop arrangements, so the key questions are (1) whether a rental car was actually used (or another transportation cost was incurred), (2) whether those charges were already paid by an insurer or out of pocket, and (3) whether the rental period matches the time the vehicle was reasonably unavailable for repair. If the rental was used during the repair window and the charges are documented and reasonable, it is commonly handled as part of the property-damage portion of the overall claim.

Process & Timing

Who files: The vehicle owner (or the owner’s insurer through subrogation) typically submits the rental documentation. Where: With the at-fault driver’s auto insurance adjuster (property-damage adjuster) and/or the owner’s own collision carrier, depending on how repairs were handled. What: Rental agreement and final receipt, dates of rental, proof of payment, repair estimate/invoice, and shop records showing when the vehicle was in the shop. When: As soon as the rental ends and the final bill is available, and before the property-damage portion is closed.
Coordination step: Confirm whether the rental was billed directly to an insurer, paid out of pocket, or provided as a courtesy arrangement. If an insurer already paid, the demand should not double-count it; instead, it should accurately reflect what remains unpaid or what reimbursement is still owed.
Resolution step: The adjuster either issues payment/reimbursement for approved rental days and rates or disputes the amount/time period. If disputed, additional documentation (shop delays, parts backorders, total-loss valuation timeline) often becomes the deciding factor.

Exceptions & Pitfalls

Already paid by insurance: If a carrier already paid the rental directly (or reimbursed it), it usually should not be included again in a demand as an unpaid loss.
Unreasonable rental duration: Rental days that extend beyond a reasonable repair period (for example, waiting weeks to authorize repairs or pick up the vehicle) are commonly challenged.
Documentation gaps: Missing receipts, unclear rental dates, or no proof the vehicle was actually unavailable during the rental period can lead to denial or reduction.
Rate disputes: Premium or upgraded rentals can be contested if a more basic, comparable vehicle would have met the transportation need.
Mixing injury and property paperwork: Many insurers handle property damage and bodily injury in separate claim tracks. A rental bill may need to go to the property-damage adjuster even if the law firm is preparing the injury demand.

Conclusion

In North Carolina, a rental car can be covered as part of the property-damage claim when it reflects reasonable loss-of-use damages during the time the vehicle could not be used because of the crash. The key issues are causation (the crash made the vehicle unavailable), reasonableness (time and rate), and proof (rental and repair records). The next step is to gather the rental receipt and repair timeline and submit them to the property-damage adjuster before the property-damage portion is closed.

Talk to a Wrongful Death Attorney

If you’re dealing with a crash claim and aren’t sure whether rental car charges belong in the property-damage portion of the demand package, 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.