Last Updated on March 4, 2025 by Kristin
First time renting a car in California? You may be wondering what to expect when it comes to state laws, local roads and insurance information. Here’s what to know about car rentals in California.
Minimum Age to Rent a Car in California
Major Car Rental Companies: At most rental car companies, the minimum age to rent a vehicle is 21. Drivers aged between 21 and 24 can expect to pay a “young renter” fee. However, there are a few exceptions. Hertz will rent cars to drivers as young as 20 in California. To avoid the young renter fee, consider joining an organization such as the American Automobile Association (AAA).
Other Options: Car sharing platform Turo requires U.S. drivers to be at least 18 to book a trip, with one major caveat: drivers must be at least 21 to book a vehicle with a market value of more than $20,000. Young drivers under 20 will also have to pay a young renter fee starting at $50 per day, or $30 per day for ages 21-24. Drivers 21 and under must buy a Turo protection plan.
What Do You Need to Rent a Car in California?
Driver’s License: To rent a car in California, drivers need to show a hard copy of a valid driver’s license. Rental car companies generally do not accept digital licenses in any state.
Credit or Debit Card: Renters also have to show a credit or debit card to cover the estimated reservation charges and a deposit, which varies depending on the rental company, location and type of vehicle. If renting with a debit card, note that some companies might request an additional form of identification to secure the reservation or proof of return travel at airport locations. Some locations may not accept debit cards at the start of a reservation.
Good Driving Record: Rental car companies may check your driving record at their discretion. Drivers with a history of drunk or reckless driving or multiple accidents may be refused a rental car in California or any other state.
California Car Rental Insurance Laws
Liability Coverage: Liability insurance is not automatically included when renting a car in California for U.S. residents — you’ll have to use your own policy or purchase coverage from the rental company. International renters should check with the rental company to see whether liability is included.
California significantly increased its minimum liability requirements for passenger vehicles in January 2025, doubling the amount for injuries or death and tripling the requirements for property damage compared with previous-year levels. The current minimum levels are:
- $30,000 for injury or death to one person
- $60,000 for injury or death to more than one person
- $15,000 for property damage.
Consumer Protections: California is known for its strong consumer protection laws, and car rentals are no exception. State law mandates that car rental agents follow certain protocols to use “ethical sales practices,” including posting signs that indicate certain coverage may duplicate a renter’s existing insurance.
Additional Driver Fees For California Rentals
California allows rental agencies to charge additional driver fees but the law waives the fee for several types of passengers, including parents, spouses, siblings and children of the main renter. So, you’ll still be able to avoid the additional driver fee in most cases.
State Taxes and Fees for Rental Cars
Tourism Assessment Fee: California levies a 3.5% tourism charge on rental cars in the state, which rental companies charge to recoup fees to California’s Travel and Tourism Commission.
California Sales Tax: California’s minimum 7.25% state sales tax will be applied to rentals, but this rate may be higher depending on the specific location when factoring in additional local taxes. For example, rentals at San Francisco International Airport (SFO) are subject to San Mateo County’s 9.375% combined tax rate.
California Airport Rentals
You’ll pay additional fees when renting at a California airport, in addition to sales tax, local taxes and any extra charges the rental car company chooses to charge to recoup its costs of doing business.
Concession Recovery Fee: This charge equals 11.11% of your bill at facilities including airports, which helps cover the rental car company’s airport fees.
Customer Facility Charge: Rental car companies may also charge a customer facility fee to maintain the rental car facility. This charge varies depending on the airport.
Los Angeles International Airport (LAX): $9 per day
San Francisco International Airport (SFO): $10 per rental
San Diego International Airport (SAN): $9 per day
SFO Transportation Charge: In addition to the customer facility charge, rental companies charge an additional $16 “Transportation and Facilities Fee” to help pay for the AirTrain connecting the rental car facility to the airport.
Toll Roads in California
California Toll Locations: You may encounter toll roads in California, especially when crossing bridges in the Bay Area or traveling in Orange County.
California’s toll roads use the FasTrak system, which uses transponders or stickers to pay tolls electronically. While certain roads accept cash or credit card payments, not all do.
How to Pay: Rental car companies offer an option to pay electronically using their own transponders or pay-by-plate services, but expect to pay an extra fee to use it. This can cost anywhere from roughly $4-13 per day in addition to the tolls for each day you are using the tolls, which can quickly add up.
If you plan to drive in California frequently, it may make sense to sign up for a FasTrack account and buy your own transponder. Existing account holders can temporarily add a rental car’s license plate.
Driving into Mexico
Do not drive a California rental car across the border into Mexico without prior permission from the rental car company. Many rental companies have strict restrictions on driving cars across the border into Mexico and require U.S. drivers to pay for an extra insurance policy. Several rental car companies also require drivers to rent the car with a corporate account.
Understanding how rental car insurance, fees and requirements work in California is important to help make sure your trip is as easy and affordable as possible.
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