Do I need rental car insurance in California?

Yes, you do need rental car insurance in California. Rental car companies in California are not required to automatically provide the state's minimum liability insurance as part of their standard contract, so you must have separate liability coverage when you rent a car in California.

Your rental car company can sell you this liability coverage for an extra charge. Don't make the mistake of thinking this is the same as the optional, supplemental insurance most rental car companies will offer you in other states. This liability coverage is required. You could still turn the rental car company down, however, because you might already be covered under your personal auto insurance policy.

Call your personal insurance company before you rent a car in California to see if your policy is already set up to cover the rental car. Make sure you have the minimum required liability coverage in your policy if you're from out of town.

California Rental Car Insurance Basics

• Minimum Bodily Injury Liability Coverage: $15,000 for injury/death per person ($30,000 per accident)
• Minimum Property Damage Liability Coverage: $5,000 per accident
• Automatically Included? No
• Top Sources of Coverage: Personal car insurance, credit card rental car insurance, and rental company insurance

Types of Rental Car Insurance in California

You're only required to have liability coverage in California, but optional types of coverage can offer additional peace of mind. For example, if you have collision and comprehensive coverage on your personal auto policy, it will generally extend to your rental car and prevent you from having to purchase a damage waiver from the rental car company.

Also, if you have MedPay on your personal policy, you won't need personal accident insurance from the rental company. This type of insurance will cover medical costs for you and your passengers.

Other Sources of Rental Car Insurance in California

Another source of optional coverage you may already have is your credit card. Many credit cards provide free coverage for rental car damage and theft when you use your card to rent a car. It is worth calling customer service or checking your account online to find out if your credit card provides this free coverage. However, credit cards do not provide liability coverage or personal injury protection and you have to reject the collision damage waiver from the rental car company for the coverage to apply.

If you don't have collision and comprehensive on your own policy or through a credit card, consider purchasing a loss-damage waiver from the rental company. A loss-damage waiver isn't insurance, but it does the same job of protecting you financially. It puts the responsibility of paying for any damage that happens to the car while in your care on the rental company rather than on you.

To learn more, check out WalletHub's complete guide on rental car insurance.