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Texas Vernon's Texas Civil Statutes - Article 9026c. Rental Car Damage Waiver

Legal Research Home > Texas Laws > Vernon's Texas Civil Statutes > Texas Vernon's Texas Civil Statutes - Article 9026c. Rental Car Damage Waiver

Art. 9026c. RENTAL CAR DAMAGE WAIVER.                                          

Definitions
	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 
or loss.
	(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.

Prohibited Practices
	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 
authorized driver;
	(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 
infraction;
	(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 
10-point type:

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 
insurance.
	(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 
following notice:

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 
the claim.

Mandatory Charges
	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.

Prohibited Representations
	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.

Penalty
	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 
injunctive relief.
	(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 
article.

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 
17, 2005.

Last modified: August 11, 2007