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The insurance company and rental cars

Can the insurance company cut off my rental car before I receive the total loss settlement money?

Assuming you are not the cause of any delays, no. Many insurance adjusters still believe that “loss of use” (i.e., the rental-car claim) is not owed under Texas law in the event of a total loss. That used to be true. In 2015, however, the Texas Supreme Court decided J&D Towing, LLC vs. American Alternative Insurance Corp. Now, the rule is reasonableness. The insurance company has to allow a reasonable amount of time to arrange the purchase of a new vehicle. If your adjuster claims they don’t owe for “loss of use”, tell them to google the J&D Towing case. Ask them to review it with their supervisor. Just remember that “reasonable” is in the eye of the beholder. To minimize the risk of having to pay out of pocket, contact online sellers, dealerships, and finance companies ahead of time if you can. Decide what you are buying. Find out if you can get into your new vehicle with a “letter of guarantee” from the adjuster. That way you won’t have to wait for the insurance company’s check to process to get out of the rental car.