Consumer Alert on Insurance Coverage for Rental Cars
_300213.png "Consumer Alert - CA Commissioner Ricardo Lara #INSURECA")
_300213.webp "Consumer Alert - CA Commissioner Ricardo Lara #INSURECA")
Make Sure You’re Covered When Renting a Car
October 16, 2023 — The California Department of Insurance is alerting consumers on the importance of verifying auto insurance coverage when you are renting a car, whether it’s through a traditional rental agency or through a Personal Vehicle Sharing Program (PSVP).
PSVPs are not the same as traditional rental car programs, and are handled differently by insurance companies and by credit card companies that offer damage waiver coverage when you use their cards. Each insurance company and each credit card company may handle PSVPs differently, and may exclude coverage for vehicle damage, leaving you responsible. PSVPs are defined and spelled out in the insurance code in CIC §11580.24.
Not every auto insurance policy automatically provides coverage for rental vehicles. Some policies only provide coverage if it’s a replacement or substitute vehicle provided while your insured vehicle is in the shop for repairs. Credit card coverages typically address rentals from traditional car-rental companies, not peer-to-peer car rental services.
If you have further questions, please don’t hesitate to contact the Department of Insurance by calling our hotline, (800) 927-4357, or by visiting our website, www.insurance.ca.gov.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
