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Rental car insurance considerations for the holidays

No matter if they intend are planning to haul the entire family across country or are simply planning an epic stay-cation this holiday season, countless families across the state of California are renting vehicles and hitting the open road. Understanding when and why supplemental car insurance is necessary can make the difference between keeping loved ones safe and wasting money on duplicate insurance coverage this year.

The California Department of Motor Vehicles explains that all vehicles parked or operating in the state must be covered by an active insurance policy. Therefore, anyone who intends to reside in or travel through California must maintain a minimum level of financial responsibility insurance. The minimum California requirements for liability insurance are:

  • $5,000 for property damage
  • $15,000 for injuries/death to a single person
  • $30,000 for injuries/death to multiple people

Given state guidelines mandating car insurance coverage for all motorists, residents and tourists alike are often compelled to buy supplemental insurance when they rent vehicles. Allstate Insurance explains, however, that there are instances where supplemental liability coverage is redundant. Among other things, supplemental insurance can be beneficial to people who are concerned about the premiums on their own auto insurance increasing in the event that their rental car is involved in an accident. Though, a person’s regular insurance may actually provide more coverage than what is offered in a supplemental policy. People are also recommended to keep in mind that their home insurance and/or secondary credit card insurance may also account for many of the liabilities covered by a supplemental insurance policy.

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