Rental car companies can rent to drivers without rental insurance by being a rental agent. The Insurance Commissioner issues the license. By keeping a license current, any trustworthy company can insure their renters.
Each franchise, company and corporation renting cars has to secure a license from the Insurance Commissioner to offer renter’s insurance.
A rental company files a license application with the Insurance Commissioner to be a rental agent. Licenses are renewed every two years.
At the time the application is filed, the rental car company pays a license fee. A license fee is paid again for each renewal.
A rental agent gives out a brochure with the company name and insurance company’s name in clear and conspicuous writing. A copy of the rental agreement is given to the renter.
For each insurance product sold, a set of training materials used to train the employees who endorse a renter’s insurance are sent to the Insurance Commissioner. Endorsees are trained each time a product is changed; training has to occur not less often than each 2 years.
Cal. Admin. Code tit. 10, §§ 2130-2130.5.
Conditions to Selling Car Rental Insurance at the California State Insurance Commissioner.