Texas' CDW Law Changed Effective September 1, 1999

In the September/October 1999 issue of Auto Rental News, the article “Use a Second Form of Rental Agreement for Trucks” talked about the laws in certain states that could affect a car rental company’s bottom line if another form of rental agreement were used for trucks. The law regarding CDW in Texas was recently changed, thus affecting how companies do business in that state.

The Texas Occupations and Business Code Annotated Section 9026 was deleted as of September 1, 1999, and in its stead is Section 9026c.

The new 9026c includes passenger vans intended for private use, but excludes pick-up trucks and panel trucks. Section 9026c still requires CDW disclosure and limits the acts that void CDW, but no longer limits the price of CDW. A separate truck rental agreement for pick-ups, panel trucks and box-truck rentals, whether intended for private or commercial use, and all commercial rentals of passenger vans, can be used to avoid the restrictions of 9026c.

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