November 29, 2022


Advocacy. Mediation. Success.

What this new law means for renting a car in California

An marketplace that was specially hammered by COVID-19 and the drastic dip in vacation productively lobbied the California Legislature to alter the regulation and slip in a delicate provision that could outcome in significant costs for unsuspecting buyers.

Presently in outcome, the new legislation will allow rental car firms to slap on a charge if an unauthorized driver, meaning someone who was not beforehand licensed in the rental settlement, is caught driving the automobile.

There are exceptions to the penalty, these kinds of as if the unauthorized driver is the renter’s partner, kid, lawful guardian, sibling, dad or mum, grandparent, employer or co-employee. Having said that, letting a buddy drive your rental auto has just turn out to be a liability and can trigger expenses, based on the corporation, that vary concerning $13 and $15 for each day for each individual more driver. There is a cap, and a rental organization can only demand up to twice the quantity of the authorized driver charge. 

This adjustment to the regulation was provided in a monthly bill that claims to modernize the state’s rental car marketplace. A different modification was to elevate the cap on destruction waivers to $25 a day for most more compact automobiles.

The rental auto market, stifled by unparalleled earnings losses prompted by the pandemic, capitalized on an chance to modify the point out law in anticipation of tourism’s gradual return. An effort and hard work put forth by the American Vehicle Rental Affiliation, Avis, Business and Hertz, along with the California Travel Association and the state’s Teamsters union, generated Assembly Monthly bill 901. 

The invoice was introduced in 2021 by Assemblymember Lisa Calderon, a Democrat symbolizing California’s 57th point out Assembly district, which encompasses parts of the San Gabriel Valley and Gateway Towns locations. The monthly bill was accepted by Gov. Gavin Newsom in September 2021 and came into impact on Jan. 1. 

In a assertion to Vehicle Rental News in Oct 2021, Sharon Faulkner, govt director of the American Motor vehicle Rental Association, stated, “This is a great example of what can be achieved when ACRA associates band with each other to find a typical legislative purpose.”