
Rental car companies in Texas must abide by a new rule as of September 1, 2025.
If I Return a Texas Rental Car Early, Do I Get a Refund on the Damage Waiver?
Key Takeaway:
Yes. Under Senate Bill 72, rental car companies in Texas must refund the unused portion of a damage waiver if you bring the car back before your contract ends.
What the Law Says
A damage waiver is an optional fee that limits your responsibility if the rental car is damaged. Before September 1, 2025, returning your car early didn’t guarantee you’d get part of that fee back.
Now, SB 72 requires rental companies to issue a pro-rated refund. In practice, this means if you pay for a week but only use five days, you should only be charged for five days of coverage.
Why It Matters for Texas Drivers
Rental fees add up quickly. This new rule helps protect consumers by ensuring:
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Fairness – You only pay for the coverage you actually used.
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Transparency – Clear rules make it harder for companies to pocket extra fees.
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Accountability – If a company refuses the refund, you now have the law on your side.
What Drivers Should Do
If you return a rental early, protect yourself by:
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Asking for a receipt that shows the pro-rated damage waiver refund.
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Keeping your rental contract, which is proof of your coverage period.
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Speaking up if the refund isn’t automatically provided.
The Bigger Picture
This law is part of the 835 new Texas laws that took effect on September 1, 2025. While many focus on criminal penalties or public safety, SB 72 is designed to safeguard everyday consumers from unfair costs.
👉 Want to see how this law fits into the bigger picture? Check out our related post: Six New Texas Laws Drivers Should Know (Effective September 1, 2025)
Rental Car Accident? Call Shaw.
Disputes with rental companies can be frustrating, especially after an accident. If you’ve been injured in a crash while driving a rental car—or if an insurance dispute is preventing you from getting fair treatment—you don’t have to handle it alone.
You may be entitled to compensation for:
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Emergency Treatment
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Medical Bills
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Lost Wages
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Property Damage
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Pain and Suffering
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And More
Call Shaw today at 800-862-1260 to schedule your free case evaluation with a San Antonio car accident lawyer. No fees. No pressure. Just expert legal advice when you need it most.
We look forward to serving you.