This is known as a “permissive use policy”. In Texas, you are not legally required to have non-owner car insurance to drive someone else's vehicle if the owner is insured. Generally, losses that result from an accident will be covered by the car owner's policy. However, even if the landlord has car insurance, the level of protection you have depends on the coverage limits you have chosen.
If you borrow your vehicle on a regular basis, you may want to purchase your own non-owner car insurance to have the peace of mind that you are well protected against liability. Tell your company about a new car as soon as possible to avoid a break in coverage. Rental agencies offer damage exemptions and liability policies. It is an agreement under which the rental agency will not charge you for damage caused to the car you rent.
Do you have to have car insurance in Texas? The answer is simple. If you have a driver's license and drive your own car, you must have car insurance. Texas car insurance requirements protect you and other drivers on the road. If an unlicensed driver causes an accident, you can't file a claim with their insurance company to get compensation for your repairs or injuries.
You have to use your own uninsured motorist coverage or file a lawsuit to recover compensation directly from the at-fault driver. Texas law requires a minimum amount of coverage, making it illegal to drive without insurance in Texas. Texas drivers who don't have insurance are subject to severe penalties. In addition, insurance for a rebuilt car can be more expensive than insurance for a standard vehicle.
For more information, see WalletHub's guides on how much car insurance you need and affordable car insurance in Texas. If you borrow one or more cars on a regular basis, we recommend that you have your own non-homeowner insurance policy, to be sure that you are adequately protected against civil liability. However, you should know that car insurance for non-homeowners doesn't cover you or your vehicle, which means it doesn't include collision coverage, comprehensive coverage, medical payment coverage, rental car coverage, and roadside assistance. If you don't own a car but often borrow someone else's car, you can take out liability insurance for people outside the owner to pay for damage and injuries you cause to other people while driving someone else's car.
It won't be worth replacing your car with a new one that is the same make and model as your wrecked car. If you think the other driver was at fault, but your insurance company won't pay your claim, file a claim with your own insurance company. If you are planning to purchase an auto insurance policy to protect yourself when renting a car, be sure to check with your insurance provider to confirm that the policy includes rental cars. If you were driving someone else's car without their permission, you can't rely on the owner's insurance to cover any of your damages, including your own.
If the other driver doesn't have liability insurance, find out if the owner of the car you were driving has insurance for uninsured drivers. While Texas insurance companies don't insure a car with a valid salvage title, you can get coverage if a state-certified mechanic repairs and inspects your vehicle. If your accident was caused by another driver, the other driver's insurance company will pay for you to rent a car. Liability coverage is the only mandatory insurance in Texas, but insurance companies are also required to offer supplemental coverage.
If the other driver's limits aren't enough to cover all your medical bills, file a claim with your car insurance company or health insurance company...