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CA Department of Insurance

Conditions to Selling Rental Car Insurance

Section 1758.86 of the California Insurance Code states, in part, that a rental car agent shall not sell insurance pursuant to this article unless all of the following conditions are satisfied:

  • The rental period of the rental agreement does not exceed 30 consecutive days, except for any renewals or extension of the original rental period.
  • The rental car agent provides brochures or other written materials to the prospective renter.
  • The rental car agent or its endorsee makes all of the required disclosures to the renter, which shall be acknowledged in writing by the renter, or displayed by clear and conspicuous signs that are posted at every location where rental agreements are executed, such as the counter where the renter signs the rental agreement
  • Evidence of coverage is stated on the face of the rental agreement or evidence of coverages provided to every renter who elects to purchase that coverage is indicated to the renter.
  • The insurance is provided under an individual policy issued to the purchaser, or under a group, or master policy issued to an organization licensed as a rental car agent by an insurer authorized to transact the applicable kinds or types of insurance in this state.

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