Relating to the circumstances in which a rental company may void a damage waiver for a rental vehicle.

Car renters face more damage waiver risks

For Texas rental agreements made on or after September 1, 2025, companies can void damage waivers only for listed reasons. Earlier agreements remain under prior law. A company can void a waiver if the renter supplied fraudulent information that the company relied on to rent the vehicle. For a stolen vehicle, it can also void the waiver if the renter fails to return the ignition key, report the theft to law enforcement within 24 hours after discovering it, and cooperate with the company and investigating authorities. Other grounds include damage caused by an authorized driver's intentional actions or willful and wanton misconduct. They also include damage arising from an unauthorized driver, a driver using an intoxicant that impairs driving ability—including alcohol—or a driver under the influence of an illegal drug or controlled substance. Damage arising while a driver commits a crime other than a traffic infraction also qualifies. Other grounds cover damage from carrying people or property for hire, pushing or towing anything, driver training, or a speed contest. Damage from use outside the continental United States also qualifies unless the rental agreement specifically allows that use. Losing the waiver can leave renters paying damage costs it otherwise covered.