Short answer
If another driver caused the crash, their liability insurer owes you for loss of use of your car — usually a reasonable rental for the reasonable time it takes to repair or replace it. The Texas Supreme Court confirmed loss-of-use damages are available even when a car is totaled (J&D Towing, 2016). While fault is still being decided, your own policy’s rental reimbursement coverage — if you bought it — can pay.
Loss of use: what the at-fault driver owes
When someone else damages your car, Texas law lets you recover for the loss of its use while it’s repaired — and, since the Texas Supreme Court’s 2016 decision in J&D Towing, while you replace a car that was totaled. Loss of use is commonly measured by the reasonable cost of renting a comparable vehicle for a reasonable period.
When the other insurer hasn’t accepted fault yet
The at-fault driver’s insurer may not approve a rental until it accepts liability. While you wait:
- Rental reimbursement coverage on your own policy pays for a rental up to its daily and total limits — it’s optional, so check your declarations page.
- If you rent on your own, keep every receipt; reasonable rental costs are part of your loss-of-use claim against the at-fault driver.
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How to avoid paying out of pocket
- Ask the at-fault driver’s insurer, in writing, to confirm liability and authorize a rental.
- Rent something similar to your own car — a big upgrade may not be reimbursed.
- Keep the repair shop’s dates. How long repairs reasonably take determines how long a rental is reasonable.
- If your car is totaled, move quickly on replacing it — loss of use covers a reasonable replacement period, not an open-ended one. See totaled cars in Texas.
Frequently asked questions
Who pays for a rental car after an accident in Texas?
If another driver caused the crash, their liability insurer owes you for loss of use — usually a reasonable rental. Your own rental reimbursement coverage, if you bought it, can pay while fault is being decided.
How long will insurance pay for a rental car in Texas?
For loss of use, a reasonable period to repair or replace your car. Your own rental reimbursement coverage pays up to the daily and total limits on your policy.
Do I get a rental if my car is totaled?
If another driver caused the crash, yes — the Texas Supreme Court held loss-of-use damages are available even for totaled vehicles (J&D Towing, 2016). It covers a reasonable time to replace the car.
Does my own car insurance cover a rental car after an accident?
Only if your policy includes rental reimbursement coverage, which is optional. Check your declarations page for it and its limits.
Texas law and sources cited
- J&D Towing, LLC v. American Alternative Ins. Corp., 478 S.W.3d 649 (Tex. 2016)
- Tex. Civ. Prac. & Rem. Code §16.003 — two-year limitations period
- Texas Department of Insurance — Consumer Help Line and complaints
General information, not legal advice. DFW Crash Data is not a law firm, and every situation is different — for advice about your own claim, talk to a licensed Texas attorney. Laws change; the sources above were checked on the date shown at the top of this page.