August 10, 2022


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What this new law means for renting a car in California


An market that was notably hammered by COVID-19 and the drastic dip in vacation effectively lobbied the California Legislature to adjust the law and slip in a refined provision that could outcome in sizeable service fees for unsuspecting customers.

Already in effect, the new legislation makes it possible for rental vehicle corporations to slap on a price if an unauthorized driver, that means somebody who was not beforehand approved in the rental settlement, is caught driving the vehicle.

There are exceptions to the penalty, this sort of as if the unauthorized driver is the renter’s wife or husband, little one, lawful guardian, sibling, father or mother, grandparent, employer or co-employee. Nonetheless, letting a pal generate your rental motor vehicle has just develop into a liability and can result in charges, relying on the organization, that variety concerning $13 and $15 per day for just about every additional driver. There is a cap, and a rental firm can only demand up to 2 times the amount of money of the licensed driver payment. 

This adjustment to the regulation was involved in a invoice that promises to modernize the state’s rental car field. One more modification was to elevate the cap on destruction waivers to $25 a working day for most smaller sized motor vehicles.

The rental vehicle market, stifled by unparalleled revenue losses prompted by the pandemic, capitalized on an option to modify the point out regulation in anticipation of tourism’s gradual return. An effort and hard work set forth by the American Automobile Rental Association, Avis, Company and Hertz, along with the California Vacation Affiliation and the state’s Teamsters union, made Assembly Monthly bill 901. 

The bill was released in 2021 by Assemblymember Lisa Calderon, a Democrat symbolizing California’s 57th state Assembly district, which encompasses portions of the San Gabriel Valley and Gateway Cities locations. The invoice was accredited by Gov. Gavin Newsom in September 2021 and arrived into effect on Jan. 1. 

In a assertion to Auto Rental News in Oct 2021, Sharon Faulkner, govt director of the American Automobile Rental Association, said, “This is a fantastic case in point of what can be completed when ACRA users band with each other to seek a common legislative objective.” 


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