Reader’s Question:
If I get in an accident with a car that I just rented, who will be responsible for the damages? I live in Texas.
Brenda
Corpus Christi, TX
Like most states, Texas is a tort state. In an accident there in Texas, someone has to be at fault, and this person and his auto insurance company is going to be liable for all the damages made in the accident.
Now, in the case of rented vehicles, rent-a-car companies typically offer collision damage waivers and liability policies as well. A collision damage waiver is not an insurance policy but an agreement that the auto rental company will waive its right to be paid for all the costs of the damage of the auto by the renter of the vehicle regardless of who is at fault in the accident. The basic liability required in Texas may be able to cover for some of the damages inflicted in the car if you get to an accident there in Corpus Christi, Texas, but your coverage limit may not be enough to pay for the actual value of the rented car. So, it is going to depend on you if you rent cars often. If you do, I think it is better to just raise the liability limit on your auto insurance policy, rather than buy collision damage waivers every time you rent.
But in the case that you don’t actually own a car and just borrow or rent, you can avail of a non-owner liability policy that pays for the damages and injuries you cause but not for the damage of the vehicle you are driving.