Can insurance provider decline paying for rental
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Can insurance provider decline paying for rental
Insurance claim was made in October, due
to a natural disaster. My car has been
at service location since time of claim,
insurance states they can no longer pay
for a rental, but I have no car to drive
or enough money to pay for it out of
pocket. I am still paying my insurance
and also paying a car payment. Is this
legal for them to decline continuing
payments for rental?
Asked on January 2, 2019 under Insurance Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
You state this is your insurer--i.e. the one you pay for a policy. In that case, they have to provide you the rental coverage specified in the policy you pay for. Insurance policies are contracts: the parties to the contract must do and pay what the policy says. If they have provided all the rental coverage that the policy states they must, they are done--they don't have to provide any more, and you cannot force them to. If, on the other hand, under the terms of the policy, they still have to pay for a rental (e.g. provide more rental coverage), they cannot simply decide to stop; they have to provide the full amount of contacted-for coverage, and if they do not, you could sue them for breach of contract (for violating their contractual or policy obligations).
If there was no rental coverage in you policy and they voluntarily provided you coverage as a courtesy to a customer, they could stop providing it whenever they wanted.
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