California rental company wants me to buy its damage waiver at the counter — is that required, and what happens if I decline?

Car insuranceBuying a policyCaliforniaChecked Nov 6, 2026

From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-06 · Source: California Legislature · AB 2051 enrolled text (2016) · Civil Code § 1939.13(a) View original ↗

In short

A California rental company may not require you to buy its damage waiver.
It may not use tricks like a deposit to push you.
Check your own insurance and card first.

What this means

A California law text says a rental company may not require you to buy a damage waiver, optional insurance, or another optional extra [1]. It also bars unfair or pushy tactics. The text lists examples. They are refusing your reservation, limiting which cars you can get, asking for a deposit, or blocking your card for a deposit-like sum if you say no [2].

A damage waiver is the company's promise not to hold you liable for some or all damage or loss to the car [3]. The state insurance office says it costs an extra fee. The fee and the wording vary [4]. The notice in the law text says the company will not hold you responsible if you buy it [5].

If you say no, you may still owe money for damage. The state office says the rental contract makes you responsible for collision damage while you have the car [6]. Your own auto policy may or may not cover a rental car. It depends on the policy wording [7]. The sources do not say which choice costs you less.

Your next step

Ask the counter agent to show the waiver price and its listed exceptions in writing before you sign. Call your own insurer and card issuer first if you can. The sources give no deadline.

Check it yourself

Read the notice on the rental contract or sign and your own auto policy and card benefits guide. The law text above is the 2016 enrolled bill, not the current code page. The sources do not say whether the law changed after 2016 — "Don't know yet". The sources do not say what the waiver costs today — "Don't know yet".

Where this comes from (7)

[1] California Legislature · AB 2051 enrolled text (2016) · Civil Code § 1939.13(a) · checked 2026-11-06
A rental company shall not require the purchase of a damage waiver, optional insurance, or another optional good or service.
[2] California Legislature · AB 2051 enrolled text (2016) · Civil Code § 1939.13(b) · checked 2026-11-06
A rental company shall not engage in any unfair, deceptive, or coercive conduct to induce a renter to purchase the damage waiver, optional insurance, or another optional good or service, including conduct such as, but not limited to, refusing to honor the renter’s reservation, limiting the availability of vehicles, requiring a deposit, or debiting or blocking the renter’s credit card account for a sum equivalent to a…
[3] California Legislature · AB 2051 enrolled text (2016) · Civil Code § 1939.01(g) · checked 2026-11-06
“Damage waiver” means a rental company’s agreement not to hold a renter liable for all or any portion of any damage or loss related to the rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing, or administrative charges.
[4] California Department of Insurance · So You've Had an Accident, What's Next? · collision damage waiver Q&A · checked 2026-11-06
Both the amount of the fee and the language of the waiver vary.
[5] California Legislature · AB 2051 enrolled text (2016) · rental notice · checked 2026-11-06
The rental company will not hold you responsible if you buy a damage waiver.
[6] California Department of Insurance · So You've Had an Accident, What's Next? · collision damage waiver Q&A · checked 2026-11-06
The terms of the rental agreement make the customer responsible for collision damage while he or she has possession of the vehicle.
[7] California Department of Insurance · So You've Had an Accident, What's Next? · collision damage waiver Q&A · checked 2026-11-06
Coverage for collision damage to the rental car under your personal automobile policy depends upon the policy language.

How we found this

We matched your question to 7 official sources, quoted the exact lines, and re-checked each quote against its source on 2026-11-06.

What we don’t know yet

Your own plan or notice may say something different. If your letter cites another rule, send it and we will look again.

Every answer is checked against the official rule it quotes.

Information only — not legal advice. Your plan, insurer or agency decides.

This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.

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