Can insurance provider decline paying for rental

UPDATED: Oct 1, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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