California renters may want to beware of new charges on their bill now that a long-standing provision banning charges for additional drivers has been quietly lifted.
These fees – the largest rental companies charge between $13 and $15 a day for each additional driver – have been banned in California for more than 30 years. In fact, according to an analysis of the bill, California was the only state to ban such fees as of 2021.
The updated law, effective Jan. 1, still prohibits car rental agencies from charging for additional drivers in certain cases, such as if the driver is the renter’s spouse, child, sibling, parent, or grandparent, or if the driver colleague or employer.
But consumer advocacy groups say fees not included in the originally advertised price could add significantly to the cost of services. (Many company websites still state that there are no driver surcharges in California.)
“It’s just another way to get extra money without having it reflected in the value of the car or the base value of the car,” Robert Herrell, executive director of the California Consumer Federation, told me.
“We just think this fee hike is misleading consumers,” he said, adding that such fees “disproportionately impact low-income tenants.”
Check, AB 901, was represented by Assemblywoman Lisa Calderón, a Democrat representing parts of the gate cities of southeastern Los Angeles County and the San Gabriel Valley. She said car rental companies are struggling due to “devastating losses” from the coronavirus pandemic and “numerous onerous price caps and restrictions.”
The bill was introduced at the initiative of car rental giants Avis, Enterprise and Hertz, which also own Alamo, Budget, Dollar, National and Thrifty.
The consumer federation lobbied for initial drafts of the bill but withdrew its objections, Herrell said, showing good faith after provisions such as a ban on fees for some additional drivers were added.
According to him, “the bill was under consideration” before the federation and others opposed it. “Even when we tried to engage the author’s office early on, it became painfully obvious that it was the car rental industry that was driving the train here.”
As the pandemic prompted trips to the crater in early 2020, the car rental industry sold cars make money fast; Bloated with Hertz debts filed for bankruptcy protection.
But when travel resumed a year later, car rental prices skyrocketed as the agencies were unable to purchase enough new vehicles to rebuild their depleted fleet. Hertz earned $600 million in profit for the three months ended September 2021 and Avis Budget Group earned nearly $675 million in profit record at that time.
A spokesman for the American Car Rental Association, a lobbying group, said the fees cover insurance costs for additional drivers. “The assumption is that if you have different drivers driving a vehicle, the risk will be different than if there was one driver,” spokesman Greg Scott told me.
Sharon Faulkner, executive director of the association, told Auto Rental News“This is a great example of what can be achieved when ACRA members come together to achieve a common legislative goal.”
The updated law also allows companies to double the fee if they find the car was driven by an unauthorized driver and raises the damage limit to $25 per day for most small cars from $11 to $17 depending on the vehicle. model. This limit will now rise with inflation.
Hertz took questions to the car rental association, and Calderón declined to comment other than her statements at the time of the bill’s passage. Avis declined to comment.
Here are the typical fees for each additional driver for the largest car rental agencies and any exceptions they make in addition to the California exemptions for spouses, family and co-workers.
HertzDollar and Thrifty: $13.50 per day, up to $189.
The Hertz website says it releases unmarried partners who live together at the same address permanently and are members of its loyalty program, while the Avis website says it releases life partners. But representatives of these companies said that only spouses can be added as additional drivers for free. Enterprise said it verified spouses and domestic partners by matching addresses on driver’s licenses.
Takeaway? Be sure to review all documents you sign and be prepared to drop any unfounded accusations.
William P. Davies is Associate Business Editor at The New York Times in Los Angeles.
what do we eat
an Apple ombre pie.
Where are we going
Today’s advice comes from Mary Ann Salsic:
“While I appreciate the natural beauty of California, I also love the inner beauty. One of my favorites is Los Angeles County Museum of Artwhich has a huge collection of art from a wide variety of art styles. I could spend a whole day or an hour every day just contemplating not only the beauty, but also the fun bits and pieces of modern life. Try it, even though the entrance is paid.
Tell us about your favorite places to visit in California. Send your suggestions to [email protected]. We will report more in future editions of the newsletter.
What we recommend
“Snowfall”, completely unremarkable drama about the South Los Angeles family’s cocaine empire.
And before you leave, good news
Today we have not one, but two stories of how pets found their way home after years of absence.
First, the cat, who went missing in Riverside County seven years ago, was found and reunited last week with her family, who have since moved to Tennessee. “We never thought we’d ever see her again” the owner said.
Also this month, a dog that went missing in the Bay Area 12 years ago was rescued 60 miles from where it originally disappeared. It was also returned to the owner. “I’m still in shock” the owner told KTLA.
Thanks for reading. We’ll be back tomorrow.
PS Here today’s mini crossword puzzleand a hint: Spanish for “fire” (5 letters).
Soumya Carlamangla, Briana Scalia, Marielle Wamsley and Jordon Wollner contributed to California Today. You can contact the team at [email protected].