A rental company may not void a damage waiver unless:

1. (1) an authorized driver causes the damage intentionally or by wilful and wanton misconduct;

2. (2) the damage arises out of use of the vehicle:

   1. (A) by a person:

      1. (i) who is not an authorized driver;
      2. (ii) while under the influence of an intoxicant that impairs driving ability, including alcohol, an illegal drug, or a controlled substance; or
      3. (iii) while engaged in commission of a crime other than a traffic infraction;
   2. (B) to carry persons or property for hire;
   3. (C) to push or tow anything;
   4. (D) for driver's training;
   5. (E) to engage in a speed contest; or
   6. (F) outside the continental United States, unless the rental agreement specifically authorizes the use;
3. (3) the rental company entered into the rental transaction based on fraudulent information supplied by the renter; or

4. (4) the vehicle is stolen and the renter fails to:

   1. (A) return the vehicle's ignition key to the rental company;
   2. (B) file a report with law enforcement not later than 24 hours after the renter discovers the theft; and
   3. (C) cooperate with the rental company and any law enforcement agency or other authority investigating the stolen vehicle in all matters relating to the investigation of the stolen vehicle.

Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.

Acts 2025, 89th Leg., R.S., Ch. 606 (H.B. 3016), Sec. 1, eff. September 1, 2025.