Study: The Worst State For Renting a Car Is California. How come?

The March 2026 report on the worst states for renting a car found that California is the most frustrating place for renting a vehicle.

The study by Ramos James Law analyzed safety risks to hidden fees to determine exactly where in the U.S. getting a car becomes a headache for travelers.

See the full study details below as well as CBJ's Q&A session with Jon James, Chief Financial Officer (CFO) and Chief Operating Officer (COO) at Ramos James Law.

Q: What prompted you to do this particular study?

A: Every day at Ramos James Law we work with people who have been seriously injured — often in car accidents, often far from home. Renting a car is something millions of Americans do without a second thought, but there's a whole layer of financial and legal exposure that nobody talks about at the counter. We wanted to put real numbers behind that experience and show people, state by state, where renting a car is genuinely risky versus where it's relatively straightforward.

Q: What was the purpose of the study?

A: The purpose was to arm the traveling public with honest information. Most people don't realize that when you sign a rental agreement, you're taking on legal responsibility for that vehicle. If it gets stolen — and in a state like California, with over 153,000 motor vehicle thefts a year — and you didn't purchase the loss damage waiver, the rental company can hold you personally liable for the full value of the car. We wanted to make that real and concrete, not abstract.

Q: What was your interest in creating a study on this particular subject?

A: It connects directly to what we do. We have over two decades of combined experience representing injury victims — people hurt in car accidents, on unsafe roads, by negligent parties. Road safety, vehicle theft, and the legal fine print of rental agreements are all things that intersect with our daily practice. This study felt like a natural extension of the public education work we believe lawyers have a responsibility to do.

Q: How does this information benefit the public?

A: In a very practical way. Before your next trip, you can look at where you're headed and understand whether you're walking into a high-theft environment, a state with brutal hidden taxes — Minnesota charges 22.51% in rental taxes alone — or roads in genuinely poor condition. Hawaii, for instance, has the lowest consumer satisfaction score in our study at 6.7 out of 10, and 26% of its urban roads are rated as rough. Knowing that before you rent changes the decisions you make at the counter.

Q: What other studies have you completed?

A: We've conducted several research projects designed to shed light on issues that affect everyday Americans, here are some of them:

1. People in These States are Suffering the Most from Cynophobia and That is for a Reason - https://docs.google.com/document/d/e/2PACX-1vQ1pS2REAuWtYFnX6GM8G3CG5tUjG077BnSY-snh2_onmFkbLCCmQBmX4-qXsZ9oWY5M99qmKbWFdGm/pub
2. States with The Most Irresponsible Drivers - https://docs.google.com/document/d/e/2PACX-1vQpRPsPnZvtGXHIHeDFMj1nGMqC5Ndu_rUE_qWqC7bzUKwrF752C5VvrHBLqMu7VUKrXyx8tdypHZzy/pub

Q: How do you choose which studies to conduct?

A: We look for gaps - places where there's real-world risk that isn't being quantified or communicated clearly. If our clients keep running into the same problem, or if we see a pattern in the cases that come through our door, we ask: is this something the public needs better information about? That's usually where a study begins.

Q: How has your firm evolved over the last 10 years?

A: Ramos James Law was founded in 2018 by Attorney Laura Ramos James. What started as a small Austin practice has expanded into a statewide firm with offices across Texas, including Austin, San Marcos, and Mission. Laura has been named a Rising Star by Super Lawyers for five consecutive years, is a lifetime member of the Million and Multi-Million Advocates Forum, and was named a "Changemaker" by Austin Woman Magazine in 2025. Our team has grown, the cases have grown, and so has our commitment to community education — which is exactly where this research fits in.

Here is the full study:

travelers.

• California is the worst state for renters, with 153K car thefts and more than 13K fatal road crashes each year.
• 22.5% car rental tax makes Minnesota the most expensive state in the study for government-imposed fees.
• Drivers in Hawaii are the least satisfied with car rentals, giving their driving experience the lowest satisfaction score at 6.7/10.

The new report looked at several key factors to see where renting a car becomes a burden. Researchers started with the base daily price and combined it with specific rental taxes, local surcharges, and even the cost of gas. To capture the full experience, the study also tracked vehicle theft rates and road safety alongside the physical condition of urban and rural highways. Each of these details was weighted to create a single score for every state. On this scale, a higher number means a more difficult and expensive environment for renters.

Take a look at how each state ranks in the table below:

You can access the complete research findings here.

1. California

• Average daily rental price: $70
• Car rental tax rate: 11.66%
• Rental car surcharge: 0%
• Motor vehicle thefts: 153,048
• Fatal road crashes: 13,195
• Urban road roughness: 44%
• Rural road roughness: 5%
• Consumer satisfaction score: 6.8

California takes the top spot for all the wrong reasons. The state reports over 153K car thefts, which is more than any other location in the study. Safety is a major concern here, as the state also saw more than 13K fatal road crashes. Daily prices stay near the mid-range at $70, but the 11.66% tax rate pushes the total higher. The renters' experience quickly goes downhill from there. Nearly half of the city roads are rated as rough, marking the worst urban road quality in the study. Between the high crime and poor roads, the satisfaction score of the clients drops to 6.8.

2. Texas

Texas takes the second spot as one of the worst states for renters by combining hidden costs with safety risks. While the daily rental rate of $54 is cheaper than in California and seems affordable at first, a 10% surcharge increases the final bill. Security remains a worry for renters. Texas reports over 103K car thefts and 12,2K fatal crashes, both of these numbers are the second-highest totals in the nation. Road conditions are relatively manageable, but customers give 7 points to Texan companies for the existing risk of criminal and expensive surcharges.

3. Arkansas

Arkansas ranks as one of the worst states for renters, and the heavy cost burden is the main issue here. While the rental price of $75 seems standard, the final price is driven up by a 19.48% rental tax, the second-highest tax rate in the entire study. On top of that, a 10% surcharge is added to every bill, meaning renters pay a premium just to get the keys. The state sees about 5,457 car thefts and 1,640 fatal crashes annually, fewer than in Texas and California.

4. Rhode Island

Rhode Island earns its place as one of the worst states for renters, primarily due to its crumbling infrastructure. Nearly 41% of its urban roads are in bad condition. These maintenance issues create a constant headache for anyone behind the wheel. Costs add another layer of frustration. The rental price is $51, and an additional 15% tax and an 8% surcharge are added.

5. Maine

Maine ranks fifth, and the main issue here is the cost of the vehicle itself, with an average base price of $83, which is the highest rate in the entire study. A 10% tax rate and a 10% surcharge are added to that already expensive starting price. These costs make Maine an overpriced place to get behind the wheel before any extras are even considered. The state also records 342 fatal crashes and 1,134 car thefts annually.

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