Yes. If the other driver was at fault, their insurer owes the reasonable cost of a comparable rental, or the value of the lost use, for the time reasonably needed to repair or replace your car. Your own policy’s rental coverage can fill the gap while fault is decided.
Being without a car is a recoverable loss in Texas. Loss of use damages compensate for the time your vehicle is out of service, and the Texas Supreme Court held in J&D Towing v. American Alternative Insurance (2016) that they are available even when the car is a total loss, for the time reasonably needed to replace it.
The usual measure is the cost of a comparable rental. If you did not rent, you can still claim the reasonable rental value of the time without your car. The insurer will argue about how long is reasonable, so keep records of repair shop delays, parts backorders, and when the insurer inspected and paid.
The at-fault driver’s insurer often will not pay for a rental until it accepts liability. If it is investigating, you can use rental reimbursement coverage on your own policy if you bought it, and your insurer can seek repayment from the other carrier. Using your own coverage does not waive your claim for the rest.
Watch the limits. Rental coverage on your own policy typically has a daily and total cap. A third-party claim has no fixed cap, but it is limited to what is reasonable and to the property damage limits of the at-fault policy, which in Texas can be as low as $25,000 under Transportation Code section 601.072 for all property in the crash.
Do not let a rental dispute push you into signing a broad release. A property damage payment should release only the property claim. Owsley Law Firm handles rental and loss of use disputes for injury clients at no extra charge.
What to do, step by step
- Ask the at-fault driver’s insurer whether it accepts liability and will pay a rental.
- Check your own policy for rental reimbursement coverage.
- Rent a comparable vehicle and keep every receipt.
- Document repair delays and when the insurer inspected and paid.
- Return the rental promptly after repairs or replacement.
If the insurer delays inspection, ask in writing for an inspection date. Delays caused by the insurer are part of the reasonable rental period.
For a work vehicle, loss of use can include lost business income, as the tow truck owner showed in J&D Towing.
Comparable means similar in size and type to your car, not identical. If you drive a pickup for work, a compact car may not be comparable. Explain the need in writing if the insurer offers a vehicle that does not fit how you use your car.
If the insurer accepts liability but disputes the rental period, the usual fight is over delays. Keep the shop’s written explanation for parts backorders and insurer approvals, because a delay the insurer caused is part of the reasonable rental period it owes.
If your car is drivable but unsafe, such as a damaged light, a broken mirror, or a deployed airbag, do not keep driving it to avoid rental costs. Note the safety issue in writing to the insurer and arrange a rental while repairs are scheduled.
Mistakes that cost people money
- Renting a luxury upgrade the insurer will not consider comparable.
- Keeping the rental long after the car is fixed or paid for.
- Failing to claim loss of use when you went without a car instead of renting.
- Signing a broad release to get a rental paid.
Related questions
How long will the insurer pay for a rental?
For the time reasonably needed to repair or replace the car. Delays that are not your fault count.
What if I used a rideshare instead of renting?
Reasonable transportation costs while you were without a car are part of loss of use. Keep the receipts.
Does my rental coverage cover a total loss?
Usually for a set number of days after the insurer offers payment. Check your policy’s terms.
Can I get a rental while the insurer investigates fault?
The at-fault carrier may refuse until it accepts liability. Your own rental coverage can fill that gap, and you can seek reimbursement later.
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