Disclaimer: This article is for informational purposes and does not constitute legal advice. Always consult a qualified attorney about your specific situation.
Detailed Answer
After a crash in Texas, the at-fault driver’s insurer pays up to its policy limits. If those limits don’t cover your rental or loss-of-use costs, you still have options to recover additional expenses.
1. Sue the At-Fault Driver for Excess Damages
Once the insurer pays its maximum, you can bring a lawsuit against the driver for the remaining balance. To succeed, you must prove:
- Liability: The other driver caused the accident by negligence.
- Damages: You incurred reasonable rental charges or loss-of-use fees.
Texas follows the “actual expense” rule: you recover the fair market rental rate for comparable vehicles and only for the period your car was unavailable. Courts often limit “loss-of-use” to documented rental costs. If you didn’t rent a car, you may need expert testimony to establish your vehicle’s downtime value.
2. Claim Under Your Own Underinsured/Uninsured Motorist (UIM) Coverage
If the at-fault driver’s limits are too low, your UIM policy can step in. Texas law requires insurers to offer UIM coverage (Tex. Ins. Code §1952.001 et seq.). This coverage applies when an at-fault driver’s limits don’t fully compensate you. You may recover unpaid loss-of-use or rental fees up to your UIM limits.
3. Use Rental Reimbursement Coverage
Rental reimbursement is an optional add-on under your auto policy. If you purchased it, your insurer pays actual rental costs (up to the policy cap) regardless of the at-fault driver’s limits. Review your declarations page for daily and total rental limits.
4. Statute of Limitations and Venue
In Texas, you generally have two years from the crash date to file a property damage suit (Tex. Civ. Prac. & Rem. Code §16.003). File in the county where the defendant resides or where the accident occurred.
Helpful Hints
- Retain all rental car contracts, invoices and daily mileage logs.
- Compare rates from multiple rental agencies to show fair market value.
- Notify your insurer promptly if you intend to use UIM or rental reimbursement coverage.
- Document communications with the at-fault driver’s insurer regarding policy limits.
- Consult an attorney before filing suit to maximize your chances of full recovery.