Do You Need Rental Car Insurance in Texas?

You aren’t legally obliged to buy rental car insurance in Texas. Under state law, rental companies must include minimum liability insurance in their contracts.
Written by Stephanie Southmayd
Edited by Jessica Barrett
You aren’t legally required to purchase
rental car insurance
in the state of Texas. Rental car companies provide the minimum state-required liability insurance coverage as part of their basic contract.
  • Texas car insurance laws
    don’t require you to buy rental car insurance.
  • All Texas rental companies are legally obligated to include minimum liability insurance in their contracts.
  • Your personal insurance company may allow you to extend your collision coverage and comprehensive coverage to rental cars.
  • If you don’t have car insurance or your insurance doesn’t cover rental vehicles, it’s a good idea to purchase coverage from your rental company.

You don’t need to purchase rental car insurance in Texas

You’re not legally required to purchase rental car insurance when renting a vehicle in Texas because Texas rental vehicle companies must automatically include the state’s minimum
liability insurance coverage
as part of their basic contract. This includes:
Your personal insurance company may even allow you to extend your
collision coverage
and
comprehensive coverage
to your rental cars. Just contact your insurance provider to confirm the details before signing a rental agreement.

Buying optional rental car coverage is usually a good idea

If you don’t have a
Texas auto insurance policy
of your own or if your insurance won’t cover a rental vehicle, it’s a good idea to purchase some optional insurance from the rental company.
Here are some of the additional coverages that you might want to consider:
Typically, you’ll sign a loss damage waiver, which is an agreement that the rental company will not pursue you for damages to the car. 

Texas rental car insurance costs around $31 to $60 a day

How much you pay for renters insurance in Texas depends on a variety of factors, including:
  • Your car rental company 
  • The vehicle you’re renting
  • The coverage options you select
In general, you can expect to pay around $31 to $60 per day on top of the regular rental car rates. That’s a good chunk of change—but it may be worth the added expense if, for example, your vehicle is the victim of vandalism and you’re forced to pay out of pocket for the damages.
MORE: How to avoid being unfairly charged for rental car damage

You can buy Texas rental car insurance through the rental agency or your insurer

The most obvious place to purchase rental car insurance is from your rental car company. They will explain their coverage and pricing options to you before you sign your rental agreement.
The cheaper option is to use your personal car insurance policy—but it’s important to ensure that your coverage extends to any vehicles you rent. Contact your insurance agent directly to confirm that your policy includes rental coverage.

Your credit card company can offer coverage, too

The majority of credit cards you can use to rent a vehicle in Texas—including Visa and most Amex cards—provide secondary coverage on your rental car. This means your credit card provider kicks in some extra money to cover your losses after you’ve first filed a claim with your auto insurer.
Some credit cards offer primary coverage—meaning you would file a claim directly with the credit card company and wouldn’t have to seek additional reimbursement through your insurer. Amex offers its customers the option to switch from secondary to primary coverage for an added fee of $12.25 to $24.95 for each rental.
Make sure you check your credit card’s terms and conditions before renting a car. Your provider may require you to turn down the rental agency’s collision damage waiver, for example—and knowing exactly what you’re covered for will provide added peace of mind on those Texas roads. 

FAQs

In Texas, all rental cars include the state’s minimum liability insurance coverage. This covers property damage and medical costs for the other driver in an at-fault accident, but it won’t cover damage to your rental car. 
You can buy additional rental car insurance to cover other damages. Supplemental liability insurance will provide coverage if you damage another car. But if you’re renting a particularly expensive vehicle, you may want to consider a
collision deductible waiver (CDW)
, which covers damage to your vehicle.
The minimum insurance coverage for a rental car in Texas is $30,000 in bodily injury liability insurance per person, $60,000 in bodily injury liability insurance per accident, and $25,000 in property damage liability coverage per accident.
The Texas Department of Insurance recommends that you contact your employer directly to see whether you require additional forms of car insurance coverage. Note that if you’re renting a car for business, your personal insurance policy probably won’t extend to it.
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