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5+ years experience in personal finance writing
Personal finance blogger
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
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Updated
Selecting your coverage options at the car rental counter can feel confusing. But many drivers don’t need rental car insurance in California.
If you’re renting a car and already have a personal auto policy, you may not need to purchase additional coverage. Some credit card benefits also include rental car protection when you use the card to pay for the rental.
Understanding California’s legal requirements, rental car insurance options, and average costs can help you decide whether buying additional coverage makes sense.
California requires 30/60/15 liability coverage limits for rental vehicles.
Coverage through your credit card may pay for vehicle damage and theft, but it won’t cover injuries, personal liability, or stolen belongings.
Rental car insurance in California averages $38 per day.
California drivers who already have a personal auto policy likely won’t need rental car insurance. The coverage you have for your vehicle typically extends to rentals as well.
Terms vary by insurance company, so check with your insurer to find out what protection you have — or may need — before renting a vehicle.
If You Already Have …  | You May Already Be Covered For … |
|---|---|
| Full-coverage auto insurance | Bodily injury and property damage liability, rental vehicle damage or theft |
| Liability-only insurance | Bodily injury and property damage liability, but not rental vehicle damage or theft |
| Credit card rental coverage | Rental vehicle damage or theft, typically secondary to your personal auto insurance; no coverage for your injuries or liability |
| No personal auto insurance | Nothing. You’ll need liability coverage to meet California’s financial responsibility requirements, either through the rental company or a non-owner policy. |
All vehicles, including rental cars, must meet California’s minimum insurance requirements — $30,000 for bodily injury per person, $60,000 for multiple people, and $15,000 for property damage.
You must purchase liability coverage if your personal auto insurance policy doesn’t meet those limits. If you have collision and comprehensive coverage on your own vehicle, it may also extend to a rental.[1]
Rental companies offer optional add-ons, such as collision damage waivers and personal accident insurance, but you’re not legally required to buy them.
Coverage Type | Optional or Required? | Which Policy Provides It? |
|---|---|---|
| Bodily injury liability | Required | Personal auto policy |
| Property damage liability | Required | Personal auto policy |
| Collision damage waiver (CDW) | Optional | Rental company or personal auto policy collision coverage |
| Supplemental liability insurance (SLI) | Optional | Rental company or personal auto policy, if limits are sufficient |
| Personal accident insurance (PAI) | Optional | Rental company, health insurance, or personal auto policy’s personal injury protection (PIP) |
| Personal effects coverage | Optional | Rental company or homeowners/renters insurance |
| Roadside assistance | Optional | Rental company or personal auto policy (if included) |
Buying coverage through the rental car company isn’t always necessary. It may make sense to decline coverage in the following situations:
You confirmed with your insurer that your full-coverage auto insurance extends to rental vehicles.
Your liability limits exceed California’s 30/60/15 minimums.
Your credit card covers rental vehicle theft and damage.
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Your personal auto insurance usually extends to rental vehicles for personal travel. But how much protection you have depends on your policy.
Liability coverage pays for medical expenses, wrongful death claims, and property damage if you cause an accident, but it doesn’t cover damage to the rental vehicle. But collision coverage pays for the rental vehicle’s repairs after an accident, while comprehensive coverage pays for non-collision events, such as theft, fire, vandalism, and weather damage.
Even with full coverage, though, you’ll still likely have to pay a deductible if your rental car is damaged. Rental companies might also charge administrative or loss-of-use fees, which your insurer may not cover.
Coverage Type | What It Covers on Rental Cars | Common Coverage Gaps |
|---|---|---|
| Liability only | Injuries and property damage you cause to others in an accident | Doesn’t cover your own injuries or damage to the rental vehicle |
| Collision | Physical damage to the rental vehicle from a crash, regardless of fault | May not cover loss of use or administrative fees the rental company charges |
| Comprehensive | Theft, fire, weather damage, or vandalism to the rental vehicle | May not cover loss of use or administrative fees the rental company charges |
| Medical payments (MedPay) | Medical costs for you and your passengers, regardless of fault | Minimum limits start at $1,000 per person, which may not cover serious injuries |
| Uninsured/underinsured motorist (UM/UIM) | Injuries and property damage if an uninsured motorist hits you | UM property damage pays only up to $3,500 and applies when you can identify the uninsured driver |
Rental companies typically offer additional coverage options when you pick up your vehicle, but the terminology can be confusing if you’re not familiar with it.[2]
The options rental companies offer are fairly standard, though they can vary by state and company. Understanding what each product covers can help you avoid paying for coverage you already have, while still leaving yourself financially protected.
A collision damage waiver (CDW) — sometimes called a loss damage waiver — isn’t technically an insurance product. It’s an agreement from the rental company that it won’t hold you responsible if the vehicle is damaged or stolen.
CDWs may also cover loss-of-use charges, towing, and administrative fees. That said, California law allows rental companies to exclude CDW coverage if you’re driving under the influence, engaging in reckless conduct, or operating the vehicle on unpaved roads.
If you don’t have collision or comprehensive coverage on your personal vehicle, you might consider a CDW. It might also be a good idea if you rent a luxury vehicle that your auto policy won’t cover.
Your personal policy liability limits usually apply to your rental vehicle, which must meet California’s 30/60/15 minimums for bodily injury and property damage. But those limits might not be enough after a serious accident, especially one involving multiple cars, since California is an at-fault state.
Purchasing supplemental liability insurance (SLI) from the rental counter gives you extra coverage if you cause an accident. Out-of-state travelers may want to consider this coverage if their limits don’t meet California’s requirements or they want more protection.[3]
Personal accident insurance (PAI) covers medical expenses and ambulance bills for you and your passengers after a crash.
If you already have a health insurance plan, disability income insurance, or PIP through your personal auto policy, you probably don’t need this coverage. You might want to purchase PAI if you don’t have any of those coverages.
Personal effects coverage (PEC) protects you financially if someone steals your personal belongings from your rental vehicle. Cash, boats, household furniture, eyeglasses, and animals are common exclusions.
PEC limits vary by company. For example, Hertz caps coverage at $1,950, while Avis covers up to $3,000.
Before purchasing PEC at the rental counter, check your existing policies, including your renters or homeowners insurance, to see whether they cover stolen belongings when you’re away from home. Policies typically won’t cover high-value items like jewelry, and you’ll have to pay your deductible if you file a claim.
Credit cards often include rental car coverage, but terms vary by issuer. To activate the coverage, you typically need to use the card to pay for the rental and decline the rental company’s CDW.
Keep in mind that credit card rental insurance is usually secondary, meaning it pays after your personal auto policy. If you don’t have car insurance, though, the benefit may serve as primary coverage.
Rental insurance through your credit card generally covers theft and damage to the rental car — but it excludes liability protection, personal injury coverage, and stolen belongings. Coverage typically doesn’t extend to luxury vehicles, trucks, motorcycles, or antique cars.
Before renting, take these steps to determine your coverage:
Call your credit card issuers or check your Guide to Benefits to confirm whether you have rental coverage.
Ask whether the coverage is primary or secondary and check exclusions.
If you have multiple cards, compare benefits to find the best coverage.
Request coverage details in writing.
Rental car insurance costs in California average anywhere from $3 to $17 per day, depending on the coverage you select. Purchasing all four options — a CDW, SLI, PAI, and PEC — totals about $38 per day.
The table below shows average car rental insurance costs nationwide and in California, along with average personal auto insurance costs.
Coverage Type | National Average | California Average |
|---|---|---|
| Collision damage waiver | $16/day | $17/day |
| Supplemental liability insurance | $13/day | $14/day |
| Personal accident insurance | $4/day | $4/day |
| Personal effects coverage | $3/day | $3/day |
| Personal auto insurance coverage | $186/mo. for full coverage $98/mo. for liability-only coverage | $199/mo. for full coverage $96/mo. for liability-only coverage |
Where you live, your destination, and the type of vehicle you rent affect the cost of rental car insurance. Companies typically charge by the day, so coverage for longer rental periods adds up quickly.
Before you get to the counter, consider third-party rental protection plans so you can compare the best car insurance options. Allianz Travel’s OneTrip Rental Car Protector runs $13 per day, and RentalCover averages around $15 per day. — which is typically cheaper than purchasing a CDW at the counter.
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Whether you should purchase the optional coverage at the rental counter depends on the protection you already have and your tolerance for financial risk. Start by reviewing your existing policies before you get to the counter.
You don’t own a car or carry personal auto insurance. Temporary car insurance may also be worth considering.
You only carry liability coverage on your personal vehicle and want protection in case you damage the rental vehicle.
Your liability limits only meet California’s 30/60/15 minimums, which may not fully cover damages from a serious accident you cause.
You have no health insurance or PIP to cover medical costs after a crash.
You confirmed with your insurer that your full-coverage policy extends to rentals.
Your liability limits exceed California’s minimums.
Your credit card covers the rental if it’s stolen or damaged.
Your homeowners or renters insurance covers personal belongings stolen from a rental vehicle.
You want to avoid paying for duplicate coverage when renting a car, but it’s important not to skip coverage you need. These are common mistakes to avoid when considering rental car insurance in California:
Not confirming your personal auto policy extends to rentals: Coverage varies by policy, so check with your insurer before you get to the counter.
Dropping collision and comprehensive on your own car before renting a vehicle: Without those coverages, you’ll likely have no protection if you’re responsible for damage to the rental car.
Assuming your credit card covers liability: Most credit card companies cover theft and damage to the rental vehicle but exclude your liability to others.
Forgetting that you’ll still have to pay a deductible: Even with full coverage, you’ll still owe a deductible, and your insurer may not cover loss-of-use or administrative fees the rental company charges.
Renting a car for business and assuming your personal policy applies: Personal auto policies typically cover rental vehicles for recreational use only, not for business use.
Only carrying state-minimum liability limits: California’s 30/60/15 minimums may not cover the full cost of a serious accident.
California’s travel industry generated nearly $160 billion in 2025, which included vehicle rentals. Answers to common questions about rental car insurance can help you understand how coverage works and whether you need rental car insurance in California.
Yes. All drivers in California must carry liability insurance with a minimum of $30,000 per person and $60,000 per accident for bodily injury, and $15,000 for property damage — including when driving a rental vehicle. Your personal auto policy likely satisfies these requirements if it meets those minimums.
Rental car insurance includes optional products offered by rental companies at the counter. CDWs cover the vehicle if it’s damaged or stolen. Personal accident insurance covers your medical costs and those of your passengers. Personal effects coverage offers some protection if someone steals your belongings from the rental car.
When you rent a vehicle, your personal auto policy typically extends to the rental for personal use. Your credit card may also provide secondary coverage for damage and theft. If you have any coverage gaps or don’t have a personal policy, you can purchase additional coverage from the rental company at the counter.
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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5+ years experience in personal finance writing
Personal finance blogger
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
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