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Car Rental Agreement Template – Texas

Set allowed area, drivers, fee schedule, mileage, fuel, and accident reporting in Texas.

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Car Rental Agreement Template – Texas

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Car Rental Agreement Template


Car Rental Agreement ("Agreement")

Agreement Date: [MM/DD/YYYY]

Rental Reference ID: [Rental Reference ID]

Owner / Rental Company: [Full Name / Company Name]

Address: [Address]

Email: [Email Address]

Phone: [Phone Number]

Renter: [Full Name]

Driver’s License Number: [License Number]

License State/Country: [Jurisdiction]

Phone: [Phone Number]

Email: [Email Address]


1. Vehicle and Allowed Operating Area

Vehicle: [Year Make Model]

License Plate: [Number]

VIN: [VIN / N/A]

Allowed Operating Area: [State(s)/Counties/Cities]

Allowed Road Types: [Paved only / Paved + maintained gravel / Other]

Out-of-Area Use Requires Written Permission: [Yes/No]


2. Rental Period

Start Date and Time: [Start Date and Time]

End Date and Time: [End Date and Time]

Pickup Location: [Location]

Return Location: [Location / Same as pickup]

Early Return Refund: [Yes/No; terms]


3. Driver Eligibility

Primary Driver: [Full Name]

Additional Driver(s): [Name(s) / None]

License Verification Method: [Visual check / Copy on file / Other]

No unlisted drivers may operate the vehicle.


4. Payment Terms and Fee Schedule

Base Rental Cost: $[Amount]

Deposit: $[Amount] [Refundable/Nonrefundable; conditions]

Payment Method: [Credit card / Bank transfer / Cash / Other]

Fees apply as listed below.

Fee Type

Amount

Trigger / Notes

Late return

$[Amount] per [hour/day]

[After scheduled return time]

Fuel shortfall

$[Amount or formula]

[Based on fuel policy]

Cleaning

$[Amount]

[Excessive dirt/odors/stains]

Smoking/vaping

$[Amount]

[If evidence present]

Tolls/tickets admin

$[Amount / None]

[Processing/forwarding cost]

Damage not covered

$[Amount / estimate]

[Based on inspection/photos]


5. Mileage and Fuel

Odometer at Check-Out: [Mileage]

Included Mileage: [Miles/km per day or total]

Extra Mileage Charge: $[Amount] per [mile/km]

Fuel Return Standard: [Same level / Full-to-full / Other]

Fuel Level at Check-Out: [Fuel level]


6. Condition and Inspection

Inspection Record: [Photos and/or checklist attached]

Existing Damage at Check-Out: [List; Photo ID]

Odometer and Fuel at Return: [Mileage; Fuel level]


7. Insurance, Responsibility, and Violations

Insurance Included: [Yes/No; summary]

Renter Insurance Provided: [Yes/No; carrier; policy no.]

Renter Responsibility: [Damage not covered; deductible; loss of use if applicable]

Violations/Fines/Tickets/Tolls: Renter is responsible for all charges incurred during the rental period.


8. Use Restrictions and Towing/Hauling

Prohibited Uses: [Illegal activity; racing; DUI; off-road; ride-share/delivery; other]

Towing/Hauling Allowed: [Yes/No]

If towing/hauling is allowed: [Trailer type; weight limits; hitch type; approval required]


9. Traffic Stops, Accidents, and Reporting Packet

Stop/Impound Details: [If stopped/impounded: location; agency; case no.; fees]

Accident Packet: [If accident: police report no.; other party info; photos link; claim no.]

Repairs: [No unauthorized repairs; emergency repairs only with approval]


10. Termination and Recovery

Early Termination: [Mutual written consent / breach; fees if any]

Vehicle Recovery/Repossession Costs: [Chargeable/Not chargeable; terms]


11. Governing Law and Entire Agreement

Governing Law: This Agreement is governed by the laws of the State of Texas.

Entire Agreement: This document contains the full agreement between the Parties.

Amendments: Any amendment must be in writing and signed by both Parties.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Agreement Date.

Owner / Company Signature

Name: [Name]

Signature: ___________________________

Date: [MM/DD/YYYY]

Renter Signature

Name: [Name]

Signature: ___________________________

Date: [MM/DD/YYYY]

Vehicle Release (Check-Out)

Released By: [Name / Title]

Initials: [Initials]

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Car Rental Agreement Template – Texas

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For quick answers, scroll below to see the FAQ.

Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.

Texas Car Rental Agreement Template FAQ


How do I create a fee schedule that feels fair and is easy to apply?

A fee schedule works best when it is specific and tied to a clear trigger. Instead of listing only one “miscellaneous” fee, break charges into common categories like late return, fuel shortfall, cleaning, smoking/vaping, toll/ticket processing, and uncovered damage. The table format helps because it forces you to name the fee, the amount, and the event that causes it. If you change pricing later, update the table and reference the rental ID so you can prove which schedule applied to which rental.


What’s the best way to define the allowed operating area and prohibited roads?

Use simple boundaries that a renter can understand and that you can verify later. A geographic limit can be a state list, a region, or a “no out-of-state” rule. If road type matters, define it directly (for example, paved only or maintained gravel) rather than relying on vague terms like “unsafe roads.” If you require written permission for out-of-area use, specify the approval method and how the authorization will be documented in the rental file.


Can I prohibit towing or hauling, and how should that be stated?

Yes. The cleanest method is to include a direct “Towing/Hauling Allowed: Yes/No” line, and then, only if allowed, capture the trailer type, hitch requirements, and weight limits in the bracketed details. This prevents the restriction section from becoming a long list that no one reads. It also helps later if there is drivetrain damage, because you can point to a specific, completed field rather than arguing about implied rules. This also helps the renter understand expectations before pickup.


When is the traffic stop or accident packet actually needed?

Treat the packet as conditional documentation. You don’t need it for every rental, but you do want it ready if the vehicle is stopped, impounded, or involved in a collision. The packet fields (agency, case number, tow details, police report number, photos link, claim number) let you collect the core identifiers that drive follow-up. If the incident never happens, the packet can remain blank without cluttering the rest of the agreement.


What if the renter is pulled over, the car is towed, or it’s impounded?

The agreement can allocate responsibility for fines and fees and can require prompt notice to the owner. If an impound happens, the most important facts are where the vehicle is, which agency is involved, and what fees or holds are required for release. Documenting those details in the reporting section helps both parties act quickly and reduces the chance of extra storage charges. You can also include a recovery-cost clause that clarifies whether those costs can be charged back to the renter.


How do I document odometer and fuel so extra charges are supportable?

Record a baseline at check-out and again at return, using the same measurement method each time. For mileage, the odometer reading is the simplest proof. For fuel, choose a method (gauge level, fraction, or percentage) and stick with it. Pair the readings with photos of the dashboard and store them with the rental reference ID. When the baseline is clear, the math for extra mileage or fuel shortfall is straightforward and less likely to be challenged.


Can a deposit still be refundable if minor cleaning is needed?

Yes, as long as the agreement explains how cleaning charges interact with the deposit. One approach is to state that the deposit is refundable except for authorized deductions, and then list cleaning as an authorized category only when the condition exceeds normal wear. If you use a cleaning fee, define what triggers it (for example, stains, odors, pet hair, excessive debris) so it doesn’t feel arbitrary. Keeping photos from both ends of the rental supports that judgment call.

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