Once the at fault party's insurance company has interviewed its client, completed its investigation and has agreed that they are at fault, then Texas state law requires that the insurance company authorize a rental car for a reasonable amount of time, until your car can be repaired and returned back to you from the body shop. Sometimes this authorization doesn't happen very fast and the person who is without a car is put in a bind. They are often forced to rent a car on their own and seek reimbursement, but that can be problematic.

If your car is considered a "total loss," then there is no obligation on the part of the other driver's insurance company to pay for a rental car. A "total loss" occurs when it costs more to repair the car then it is worth (see Property Damage). However, the insurance companies often do pay for a rental, as it is not always easy to determine if the car is a "total loss."

If you have rental car coverage on your own policy, it is sometimes just easier to start that process, as it goes quicker and you end up with a car of comparable size.

Sometimes it turns out that the other driver does not have insurance or that the other insurance company ends up denying liability. If either of these occurs, you will end up paying for the rental car on your own and you will end up footing the bill for the car repairs--unless you purchased the appropriate insurance coverages. If you have purchased rental car coverage, then you can call your own company and get that taken care of. Also, if you have Uninsured Motorists Property Damage coverage, then your own insurance company will pay for your car to be repaired.

This is just the tip of the iceberg, as many issues come up involving rental cars. For instance, you may encounter problems with the timing of getting a rental car, timing of returning it, what kind of car you can get, who pays for the insurance on the rental car, etc. We see these issues every day and can help our clients figure these matters out. Please call us at 817-294-1900 with any questions you may have or Contact Me Online.