Third-Party Liability in California: Why the Legal Minimum Is Not Enough (2026)
Updated October 30, 2026 · By Yaniv Segal, RentCarUSA
In short: In California, as of 2026, the legal minimum for liability (third-party) insurance is $30,000 per injured person, $60,000 per accident and $15,000 for property damage. In a serious accident these are small amounts, and anything above the limit may fall on you personally. So a visitor in a rental car should have much higher coverage. Every quote we give includes third-party liability up to $300,000.
What is the legal minimum for third-party liability in California?
Liability insurance covers damage you cause to others: injury to drivers, passengers or pedestrians, and damage to someone else's car or property. It does not cover the car you are driving. That is the job of the damage waiver (LDW/CDW), which we explain in Rental car insurance in the USA.
For decades, the minimum in California was 15/30/5. The law SB 1107 raised it in two stages:
| Period | Per injured person | For all injured people in an accident | Property damage |
|---|---|---|---|
| Until the end of 2024 | $15,000 | $30,000 | $5,000 |
| From January 1, 2025 (the situation in 2026) | $30,000 | $60,000 | $15,000 |
| Planned from January 1, 2035 | $50,000 | $100,000 | $25,000 |
The notation "30/60/15" is a common short form for these three numbers. For comparison, our packages include third-party liability up to $300,000.
Why is 30/60/15 not enough?
Take three common situations on Los Angeles roads:
- You hit a new car. The limit for property damage is $15,000. An average new car in the USA costs much more, and in LA there are many luxury cars and Teslas. If the other car is a total loss, you may have to pay the difference.
- Someone is injured. In the USA, even an ambulance ride, X-rays and one night in the hospital quickly reach tens of thousands of dollars. $30,000 per injured person can run out before anyone starts to talk about lost income and pain and suffering.
- A multi-car accident on a freeway. On the 405 or the 10 at rush hour, one accident can involve several cars and several injured people. A limit of $60,000 for all injured people together is divided between them.
The USA is a country where personal injury lawsuits are common. Whatever the insurance does not cover, the injured people can claim from you personally, and returning to your home country does not necessarily end the matter.
Does a car rental in California include third-party liability automatically?
Not always, and this is a trap that many visitors do not know about. In many US states, the rental company must provide at least the legal minimum. In California the situation is different: the standard rental agreement usually does not include liability coverage, and the company assumes that you have private US car insurance. A person who does not have it, like most visitors, needs to buy coverage, usually at the counter, under names such as SLI, LIS or ALI.
So, when you compare prices, confirm in writing:
- Does the offer include third-party liability?
- What is the limit, in dollars?
- Does it apply to all listed drivers?
In our check on October 25–26, 2026, liability insurance bought at the counter cost $13 per day, which is more than $330 for 26 days, in addition to the price of the car and the damage waiver.
Does travel insurance or a credit card cover third-party liability when driving?
In most cases, no. In travel insurance policies, the third-party liability section usually includes an explicit exclusion for liability that comes from the use of a motor vehicle. This means it will cover you if you accidentally knock someone over on the street, but not if you hit them with a car. Rental car extensions in travel insurance and credit cards usually focus on refunding the deductible for damage to the rental car, not on liability to others.
Every policy is different, so before you travel, ask your insurance company or your credit card company one direct question: "Do I have coverage for third-party liability while driving a rental car in the USA, and up to what amount?" More about this in Credit card insurance and rental cars in the USA.
What is included with us, and how much does it cost?
Every quote we give includes third-party liability up to $300,000, ten times the legal minimum per injured person, together with:
- Damage and theft coverage for the car (CDW/LDW).
- All taxes and airport and tourism fees.
- Unlimited miles.
For example, for 26 days, everything included: Family sedan (Kia K4 or similar) $858, Large sedan (Kia K5 or similar) $936, and 7-seat SUV (Nissan Pathfinder or similar) $1,196. For comparison, booking the same coverage package directly on the website of a major rental company, as a non-US resident, came to about $1,277 in our check for a Corolla-size car.
Not included: fuel, toll roads, parking tickets and optional extras. All the details about long-term rental are in Monthly car rental in Los Angeles. And if an accident happens, here is what to do after an accident or damage to a rental car.
Frequently asked questions
Is $300,000 enough?
It is ten times the legal minimum per injured person, and it puts you far above the low limits of the law. No coverage fits every extreme situation, and some people prefer a limit of $1 million. If this is important to you, mention it when you ask for a quote.
Will the minimum change soon?
Under the current law, the minimum will rise to $50,000/$100,000/$25,000 on January 1, 2035. Until then, in 2026, the minimum is 30/60/15.
Does third-party liability cover the rental car itself?
No. Third-party liability covers damage to others. Damage to the rental car is covered by the damage waiver (CDW/LDW), which is also included in our packages.
What happens if a driver who is not listed on the contract has an accident?
In that case, the coverage may not apply. List everyone who will drive in advance.
Want to drive with real third-party coverage? Get a quote or choose a car with Which car fits you?.