Auto Insurance Claims: Insurance claim, rental car liability


Question
My office was hit by a Budget Rental Truck.
I wrote down the license plate no. and file claim to Budget.
Budget replied that they are not liable for the damage due to
rental  person did not buy the Insurance from them.
TRUE OR fALSE IN TEXAS ?

Thanks.


Jim

Answer
Jim,

  Unfortunately, this can indeed be true.  In Texas, rental companies have more protection than private citizens when it comes to financial responsibility due to owning motor vehicles.  I won't put it here, but there is a really technical answer based on a long history of case law and administrative and statutory law changes, but suffice it to say that in Texas, the rental company can indeed escape liability for owning a vehicle by way of the rental contract.  Unfair, but true in most cases.  These kind usually need an attorney because of the complexities involved with contractual obligation vs common law requirements, and rental companies know that it will be hard for you to find good help for claims that are property damage only and less than $10K.  

On the upside, I catch rental companies bluffing all the time (they claim no insurance was purchased, but when the contract is reviewed, low and behold, there is coverage).  My suggestion is force a written string of communication on the matter and then evaluate your legal options.  It is the negligent operator / renter you need to put pressure on.  

      

Sorry and Regards,

Justin