On Sept.30, Calif. Gov. Newsom signed into law AB 901, a new law taking effect January 1, 2022 that changes California’s LDW rules.

In a statement, the American Car Rental Association (ACRA) provided this overview of what AB 901 will do:

• Increases all currently capped damage waiver categories to $25, and, increases that cap yearly to reflect changes in the CPI. (Before AB 901 economy and compact were capped at $11; intermediate, standard, and full-size were capped at $17; vehicles older than the prior model year were capped at $11);

• Removes prohibition on charging for additional drivers, provided that the additional driver isn’t a parent, spouse, co-worker, child, sibling, or grandparent; and,

• Removes a requirement to put a mirror hanger in cars re: opting out of damage waiver

"This is a great example of what can be accomplished when ACRA members band together to seek a common legislative goal," Sharon Faulkner, executive director of ACRA, says. "Congratulations to all the companies that supported this effort financially. While no law is ever perfect, this new law is a significant improvement and demonstrates the value of ACRA membership and working together toward a common goal."