AboutBennie 719 Expertise I have extensive knowledge in Personal Auto, Homeowners Insurance and Personal Umbrella coverage. Also thoroughly familar with claims handling procedures. Will not be able to quote rates because I took an early retirement. I still maintain a valid California Property/Casualty Agent/Broker license.
Experience Experience in the area: I have been answering questions at allexperts.com since 2002 in the catagory of "Property & Casualty Insurance". Licensed in California since 1961, first in Life/Health for 3 years and as a Property/Casualty Agent/Broker since 1964. Retired at age 58, but still complete my 30 hours of continuing education every two years in order to keep renewing my license.
Expert: Bennie 719 Date: 7/16/2008 Subject: Rental Car Liability Insurance??
Question I want to rent a car for my vacation in California. Do you know if the rental car agency is required by law to have the rental car Liability Insured?
Reason for my question: The rental car companies always try to sell as much insurance as they can even if the rental car company is required by state law to provide the liability insurance!! The rental car companies try to cash in on it and they will not inform the renters if the cars are covered, they always say no.
What is the truth for California or how can I find out?
Thanks for your reply. Walt
Answer Hi Walt,
I guess that each of us will learn from this question. During all my traveling in California and renting cars for a short stay in a different city, no rental agency had ever tried to sell me liability insurance, just the collision loss damage coverage.
I have called several rental companies in the past 2 days and they all state that they do not provide liability insurance with the rental.
You can purchase liability with the rental for $12.95 per day and collision loss damage, including loss of use to the rental firm while the rental car is in the shop for $15 per day.
In order for the rental car to be covered by your own policy, most insurance companies would require that the rental fall under the "temporary substitute automobile" clause in your policy.
Call your personal agent to learn exactly how your company treats coverage to a rental car. Even if you have full coverage and your company will allow your entire policy to extend to the rental car,
you are still 'on the hook' for the loss of income suffered by the rental company if you are in a fault accident.
Be sure that NO ONE drives the car who is not listed as a driver on the rental contract. This is sufficient reason for the rental company and your own company to deny any claim resulting from the actions of a driver who was not named on the rental contract.
