Renting a Car in Los Angeles: Insurance and Age Fees

What do you need to rent a car in Los Angeles?

California law is more relaxed than the rental companies. Under Vehicle Code section 12502, a nonresident over 18 with a valid licence from the country where they live may drive without a California licence. The companies then add their own conditions.

Sources: Hertz rental terms for LAX, Hertz young renters, Avis requirements, Avis age rules and Enterprise under-25 FAQ.

Under-25 drivers are also shut out of some classes. Avis excludes full-size SUVs, luxury cars, minivans and specialty cars; Hertz excludes its Dream, Prestige and Adrenaline collections. A mobile or digital licence does not count at Hertz; bring the plastic card.

The insurance menu, translated

The counter offers several products with similar-sounding names. They protect different things.

At Hertz, LIS adds up to US$300,000 of protection for bodily injury and property damage claims above the state minimum. Its PAI pays up to US$2,500 in medical expenses per person, and PEC covers belongings up to US$650 per person. If you already have travel insurance with medical cover, PAI and PEC usually add little.

Liability: the gap visitors miss

Every car on California roads must carry liability of at least US$30,000 for one person's injury, US$60,000 per accident and US$15,000 for property damage. These limits apply to policies issued or renewed since 1 January 2025 under Vehicle Code section 16056. US$15,000 does not go far after a crash involving a newer car.

Some companies include that minimum and some include nothing:

• Hertz's terms say it provides primary liability up to the statutory minimum to international customers renting in California, meaning those whose licence shows an address outside the US.
• Avis's rental terms say a rental that starts in California includes no insurance or protection against liability, and that its separate Third Party Liability Protection is not available to US or Canadian residents.

Many prepaid packages booked outside the US include a liability supplement already. Look for "SLI", "LIS" or "Third Party Liability" on your voucher before the counter.

Which rental car insurance do you need in Los Angeles?

The reason liability comes first: a card benefit normally stops at the car. Visa's rental collision damage waiver terms, for example, cover theft, damage, loss-of-use and towing of the rental car. They exclude injury to anyone and damage to anything else, and apply only if you decline the rental company's waiver. They also stop at 31 days and exclude exotic cars, cargo vans and trucks. Cards issued outside the US have their own benefit guides; read yours for the United States specifically.

California rules that work in your favour

California's rental law, in Civil Code sections 1939.01 to 1939.39, gives renters protections that do not exist in every state.

• Damage waiver price cap. Section 1939.09 caps the daily waiver at US$25 for economy, compact, intermediate, standard and full-size cars. The cap has risen each January since 2023 with the consumer price index. Larger classes are not capped.
• A waiver really waives. The same section makes exclusions void except for listed cases, such as drunk driving, unpaved roads, an unauthorised driver or taking the car outside the US.
• Maximum liability without the waiver. Under section 1939.03, you owe at most the car's fair market value, plus towing, storage and an administrative charge. Vandalism unrelated to theft is capped at US$500. You are presumed not liable for theft if you return the key and report the theft to police within 24 hours.
• No surprise card charges. Section 1939.15 bars a company from charging your card for damage without your permission after the damage. Section 1939.07 lets you have the claim sent to your insurer once coverage is confirmed.
• Total price up front. Section 1939.19 requires the quote to show the total with all mandatory charges and government fees. It lets companies charge age-based fees, but not an extra-driver fee for a spouse, child, parent, grandparent or sibling.

How big is the deposit on a Los Angeles rental car?

At Hertz LAX, the hold is up to US$200 for a car, US$300 for a small SUV and up to US$750 for a large SUV. That comes on top of the estimated rental charges. Debit cards carry a US$500 hold and extra conditions. At airport branches you must show a return flight ticket and two forms of ID, and debit cards are refused on large and luxury classes. Visa, Mastercard, Amex, Diners, JCB and UnionPay are accepted.

Held funds are unavailable until released, as the FTC notes. On a card with a low limit, that can block hotel payments later in the trip.

Worked example: two drivers, one week from LAX

Two friends collect a compact car at Hertz at LAX for seven days. The main renter is 27; the second driver is 23. Whatever the base rate and taxes, these add-ons are fixed by the published terms as of September 2026:

If the two were married, the extra-driver fee would fall to zero. California bars that fee for a spouse, and Hertz covers spouses automatically on California rentals. The under-25 fee applies to any driver aged 20 to 24, whether renter or added driver.

Then add cover. With a card that covers the car, the pair could decline LDW, but not liability: as international customers, Hertz gives them only the US$15,000 state minimum for property damage. LIS raises that to US$300,000 and is priced at booking. Without card cover, taking LDW as well means the car is fully covered. For an economy to full-size car, the daily price cannot exceed the CPI-adjusted cap.

For tolls and Florida's rental toll programs, see Miami toll roads in a rental car. For road rules and parking fines further north, see driving and parking in San Francisco.