Texas Vernon's Texas Civil Statutes - Article 9026c. Rental Car Damage Waiver
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Article: 659, shall be guilty of a felony, and upon conviction, shall
be imprisoned in the penitentiary not exceeding two years.
Acts 1925, 39th Leg., p. 38, ch. 15, Sec 8657 8658 8659 8930 9010 9020 9023d 9023e 9026a 9026b 9026c 9030 695d
Art. 9026c. RENTAL CAR DAMAGE WAIVER.
Sec. 1. In this article:
(1) "Rental company" means a person or other entity that is
in the business of renting private passenger vehicles to the public
for 30 days or less. The term does not include an individual or
other entity who holds a license issued by the Motor Vehicle Board
of the Texas Department of Transportation under the Texas Motor
Vehicle Commission Code (Article 4413(36), Vernon's Texas Civil
Statutes) and whose primary business activity is not the renting of
private passenger automobiles.
(2) "Renter" means a person or other entity that obtains the
use of a private passenger vehicle from a rental company under terms
of a rental agreement.
(3) "Rental agreement" means an agreement for 30 days or
less setting forth the terms and conditions governing the use of a
private passenger vehicle provided by a rental company.
(4) "Damage" means damage to or loss of a rented vehicle,
including theft and loss of use, and any cost or expense incident to
the damage or loss, including storage, impound, towing, and
administrative charges, regardless of fault involved in the damage
(5) "Private passenger vehicle" means a motor vehicle of the
private passenger type, including a passenger van, that is
primarily intended for private use.
(6) "Authorized driver" means:
(A) the renter;
(B) the renter's spouse if the spouse is a licensed driver
and satisfies the rental company's minimum age requirement;
(C) the renter's employer, employee, or coworker if the
person is a licensed driver, satisfies the rental company's minimum
age requirement, and at the time of the rental is engaged in a
business activity with the renter;
(D) any person who is expressly listed by the rental company
on the rental agreement as an authorized driver; and
(E) any person driving directly to a medical or police
facility under circumstances reasonably believed to constitute an
emergency and who is a licensed driver.
(7) "Damage waiver" means a rental company's agreement not
to hold an authorized driver liable for all or a part of any damage
to a rented vehicle.
Sec. 2. (a) A rental company may not sell a damage waiver
unless the renter agrees to the damage waiver in writing at or
before the time the rental agreement is executed.
(b) A rental company may not void a damage waiver except for
one or more of the following reasons:
(1) the damage is caused intentionally by an authorized
driver or as a result of wilful and wanton misconduct of an
(2) the damage arises out of the use of the vehicle while
under the influence of alcohol, illegal drugs, a controlled
substance, or any other intoxicant that impairs driving ability;
(3) the rental company entered into the rental transaction
based on fraudulent information supplied by the renter;
(4) the damage arises out of the use of the vehicle while
engaged in the commission of a crime other than a traffic
(5) the damage arises out of the use of the vehicle to carry
persons or property for hire, to push or tow anything, to engage in
a speed contest, or for driver's training;
(6) the damage arises out of the use of the vehicle by a
person other than an authorized driver; or
(7) the damage arises out of the use of the vehicle outside
the continental United States and the use is not specifically
authorized by the rental agreement.
Disclosure Notice Requirements
Sec. 3. (a) A rental company shall provide each renter who
purchases a damage waiver that is not included in the base rental
rate the following disclosure notice, which must be in at least
NOTICE: Your rental agreement offers, for
an additional charge, an optional waiver to
cover all or a part of your responsibility
for damage to or loss of the vehicle.
Before deciding whether to purchase the
waiver, you may wish to determine whether
your own automobile insurance or credit
card agreement provides you coverage for
rental vehicle damage or loss and determine
the amount of the deductible under your own
insurance coverage. The purchase of the
waiver is not mandatory. The waiver is not
(b) In addition to the notice provided to each renter who
purchases a damage waiver, a rental company shall post in a
conspicuous location where the waiver is being offered the
Notice to Texas Residents Regarding Damage Waivers
Your personal automobile insurance
policy may or may not provide coverage for
your responsibility for the loss of or
damage to a rented vehicle during the rental
term. Before deciding whether to purchase a
damage waiver, you may wish to determine
whether your automobile insurance policy
provides you coverage for rental vehicle
damage or loss. If you file a claim under
your personal automobile insurance policy,
your insurance company may choose to
nonrenew your policy at your renewal date,
but may do so only if you are at fault for
Sec. 4. (a) In this section, "mandatory charge" means any
charge, surcharge, or fee in addition to the base rental rate for an
item or service provided in connection with a rental transaction
that the renter does not have the option of avoiding or declining
and that is not otherwise imposed by law.
(b) A rental agreement containing a mandatory charge must
prominently display and fully disclose the charge:
(1) separately on the face of the agreement; and
(2) in all of the rental company's price advertising, price
displays, price quotes, and price offers, including displays in
computerized reservation systems.
(c) A rental company may not impose or require the purchase
of a damage waiver as a mandatory charge.
Sec. 5. No oral or written representations shall be made by
any employee or agent of the rental company which contradict the
provisions of this article. No coercive language or action shall be
used by any employee or agent of the rental company in an attempt to
persuade a renter to purchase the damage waiver. For the purposes
of this section, if the renter has declined the damage waiver,
further statements or questions by an employee or agent of the
rental company making reference to the damage waiver, other than a
statement that the waiver has been declined made in conjunction
with a review of the rental agreement, shall be deemed coercive.
Sec. 6. (a) A rental company that violates this article is
subject to a civil penalty in an amount of at least $500 and not to
exceed $1,000 for each act of violation.
(b) A county or district attorney or the attorney general
may institute and conduct a suit in the name of the state to recover
the civil penalty, injunctive relief, or both the civil penalty and
(c) Any person or entity injured or threatened with injury
by a violation of this article may seek injunctive relief against
any company or person who violates or threatens to violate this
Added by Acts 1999, 76th Leg., ch. 1046, Sec. 1, eff. Sept. 1, 1999.
Sec. 3(b) amended by Acts 2005, 79th Leg., ch. 76, Sec. 1, eff. May
Last modified: August 11, 2007