If you live or work in the city of Los Angeles or anywhere in Southern California, you may have questions about rental car insurance. Many clients ask, Do you need insurance to rent a car in California? Before you rent a vehicle, the Law Offices of Jacob Emrani have some helpful tips and information regarding car rentals, insurance, and what happens if you’re involved in an accident with a rental car.
What Is Rental Car Insurance?
Rental car insurance gives you financial protection when driving a rented vehicle. It may cover certain costs related to an accident, theft, or damage to the rented car. While purchasing a separate insurance plan from the rental company isn’t mandatory, there are still some laws and rules in place regarding insurance coverage, depending on where you live. Additional options from a rental company may include collision damage coverage, supplemental liability, and coverage for your personal belongings.
Do You Need Rental Car Insurance in California?
California car rental insurance requirements are similar to the requirements in most other states. You must have auto insurance to rent a car in California, but you don’t have to purchase it separately from the rental company. In California, all drivers must carry liability insurance at a minimum, whether you’re driving a rental or your own vehicle.
As long as you have an active car insurance policy (either liability-only or comprehensive), you should be fine to rent a vehicle in California. There may be an option to purchase car rental liability insurance in California from the rental car company. Your credit card company may also have a rental car insurance option available.
What Does Rental Car Insurance Cover?
The exact details of rental car insurance will vary based on the company and its policies. Here are some examples of what rental car insurance may cover.
- Liability: This coverage handles the cost of damages and injuries to others and their property if you’re at fault in an accident involving the rental car you drive.
- Collision damage waiver or loss damage waiver: This type of coverage, often noted as CDW or LDW, covers damage to the rental car to include things like natural disasters, theft, or vandalism, up to the total replacement cost of the vehicle.
- Personal effects coverage: If your personal belongings are stolen from the rental car, personal effects coverage will pay the cost to replace them.
- Personal accident insurance: This specific type of coverage handles medical expenses for you and your passengers if you’re injured in a rental car accident.
- Roadside assistance: Some rental car companies offer roadside assistance coverage, which helps with things like flat tire changes, lockouts, or battery jump starts.
- Rental reimbursement: This specific coverage is often included with comprehensive auto insurance and covers the cost to rent a vehicle while your main vehicle is being repaired after an accident.
When Should You Skip Rental Car Insurance?
There may be instances when you can skip paying for rental car insurance.
- You have comprehensive and collision coverage: In most cases, auto insurance policyholders with comprehensive and collision coverage likely extend to rental cars, so you’re already protected against damage to the rental vehicle.
- You have credit card coverage: Many major credit card companies offer rental car insurance as a benefit, which provides primary or secondary coverage for things like damage or theft of the rental car.
- You already paid for travel insurance: Some travel insurance policies include coverage for rental car damage or theft, which means you can skip paying for it again at the rental car company.
When Is Rental Car Insurance Essential?
While there are certain times you can skip getting rental car insurance, here’s when getting this coverage is vital to protect yourself in the event of theft, an accident, or another problem.
- You don’t have auto insurance: If you don’t own a car and don’t have an auto insurance policy, you will need to purchase liability coverage from the rental car company before you can legally drive the vehicle.
- You only have liability coverage: You may want to add the rental company’s car insurance to cover damages to the rental car if you only have a liability insurance policy.
- You’re traveling internationally: Your auto insurance policy may not cover rentals outside of your country, so getting rental car insurance when traveling internationally is recommended.
- You’re renting a high-value vehicle: Your personal insurance policy may not fully cover the total value of a luxury vehicle, so in this case, adding more rental car coverage is a wise choice.
Tips for Deciding on Rental Car Insurance
Here are some tips to help you when deciding on rental car insurance.
- Make sure you understand your current auto insurance policy and what it covers before choosing to get rental car insurance.
- Compare options and prices between several rental car companies to get the best deal.
- Read the details of the insurance policy carefully to make sure you fully understand what is and isn’t covered.
- Some rental car insurance policies have a lower deductible than your personal auto insurance, so it could be better to pay for their policy while driving the rental car.
What Happens If I Have Been Involved in an Accident with a Rental Car?
You should take the same steps after being involved in an accident with a rental car that you would with your own vehicle. These important steps include getting to a safe location, contacting the authorities, and providing as much documentation as possible, including witness statements, a police report, photos, and videos. However, you will also need to contact the rental company immediately after the accident when it’s safe to do so. Follow the rental car company’s instructions carefully regarding what to do next and make sure you’re clear about what they’ll do to help you from there.
Contact The Law Offices of Jacob Emrani Today
If you’re planning to rent a vehicle, it’s important to know your rights and responsibilities regarding insurance. And, if you’re involved in a rental car accident in California, you need the experienced attorneys at The Law Offices of Jacob Emrani by your side. To find out more or to get started with your case, call (888) 912-7115 to set up your no-cost case evaluation!