Rental Car Accidents in Texas: Coverage Traps to Avoid
Most people only think about rental insurance when they’re standing at the counter and someone asks, “Do you want the protection plan?” It feels rushed, and the explanations aren’t always clear. But when a crash happens later, suddenly everyone wants to know what coverage applies—and that’s when things get messy. Understanding how rental car accident coverage in Texas really works can save you from expensive headaches, especially around Houston, where rental cars are used heavily for work travel, airport runs, and weekend trips.
Not All Rental Insurance Works the Same
The rental company usually offers a Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW). These sound reassuring, but they don’t operate like traditional insurance. They mainly protect the rental car itself. And even then, there are strings attached: improper driving, unauthorized drivers, or even using the wrong type of road could void the protection.
Coverage also gets confusing because LDW and CDW don’t automatically include liability. So, while they may help with damage to the rental car, you might still be personally responsible for injury to others or damage to their vehicles.
People often assume their personal auto policy will fill any gaps. Sometimes it does—but not always to the extent they think. Deductibles still apply, and if the rental is used for something outside normal personal use, the insurer may not cover the claim at all.
Credit Cards Help… Sometimes
Many Texans rely on credit card rental insurance without actually knowing what the card covers. Some cards only pay for damage to the rental itself. Others require you to decline the rental company’s LDW. Some don’t cover trucks. Others won’t cover any accident outside the U.S.
There are so many variations that relying on credit card coverage without reading the fine print often leads to disappointment. And because each bank has its own rules, drivers in Texas really have to check their specific card benefits before renting—especially if they’re planning long-distance travel or multiple drivers.
Liability and the “Additional Driver” Problem
Texas law requires liability insurance at all times, but rental agreements have their own rules. If someone drives the rental without being listed, your liability coverage rental car crash claim might be denied. Families and friends often rotate drivers on a road trip, forgetting that the rental company requires everyone to be listed by name.
That’s also true for additional driver rental claims. Even if the person is licensed and insured, if the rental contract doesn’t list them, the rental company may claim you violated the agreement and refuse coverage.
Common Traps Texas Drivers Fall Into
Here are recurring issues attorneys see again and again:
• Assuming LDW/CDW protects against all losses
It rarely covers injuries to others or damage you cause outside the rental vehicle.
• Using a rental for rideshare without telling anyone
Driving for Uber or delivery apps can instantly void standard rental protections unless you specifically rent through a commercial program.
• Forgetting to immediately report the accident
Rental companies have strict deadlines, and late reporting is a very common reason for denied claims.
• Overlooking exclusions in the fine print
Some agreements exclude off-road travel, unauthorized drivers, or even specific types of weather damage.
When people don’t realize how narrow coverage can be, they often get stuck paying out-of-pocket for repairs, towing, loss-of-use fees, and more.
What To Do After a Rental Car Crash
If a crash happens—whether in Houston traffic or on a road trip across Texas—documentation is key. Photos of the road, the positions of the vehicles, and any visible damage help later when coverage disputes arise. Getting a police report is important too, since insurers often rely on that document to decide fault and coverage.
Calling both the rental company and your own insurer promptly keeps your options open. Many drivers hesitate because they hope to “handle it quietly,” but that usually makes the situation worse.
Because rental car coverage can involve your auto insurer, a credit card company, and the rental agency, it’s very easy for the parties to disagree about who pays what. That’s usually when people realize they need help navigating the situation.
Get Clarity After a Rental Car Accident in Texas
At JB Law Group, PLLC, we untangle the confusion around rental car accident coverage in Texas. Whether the issue involves LDW/CDW waivers, credit card benefits, or liability questions, our team reviews every policy that might provide compensation. If you were involved in a rental car crash in Houston or anywhere in Texas, JB Law Group, PLLC can help protect your rights and guide you through coverage disputes. Reach out today for clear answers and strong legal support when you need it most.
