S.B. No. 359
AN ACT
relating to notice regarding rental car damage waivers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (b), Section 3, Article 9026c,
Revised Statutes, is amended to read as follows:
(b) In addition to the notice provided to each renter who
purchases a damage waiver, a rental company shall post in a
conspicuous location where the waiver is being offered the
following notice:
Notice to Texas Residents Regarding Damage Waivers
Your personal automobile insurance policy may or may
not provide coverage for your responsibility for the
loss of or damage to a rented vehicle during the rental
term. Before deciding whether to purchase a damage
waiver, you may wish to determine whether your
automobile insurance policy provides you coverage for
rental vehicle damage or loss. [The Texas personal
automobile insurance policy provides coverage with NO
DEDUCTIBLE for the legal liabilities of the
policyholder in connection with the loss of or damage
to a rented vehicle, except for damages caused
intentionally, up to the maximum of the property
damage limits under your liability coverage.] If you
file a claim under your personal automobile insurance
policy, your insurance company may choose to nonrenew
your policy at your renewal date, but may do so only if
you are at fault for the claim.
SECTION 2. The change in law made by this Act applies only
to a rental agreement entered into on or after the effective date of
this Act. A rental agreement entered into before the effective date
of this Act is governed by the law in effect when the rental
agreement was entered into, and the former law is continued in
effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 359 passed the Senate on
April 7, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 359 passed the House on
May 9, 2005, by the following vote: Yeas 144, Nays 0, three
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor