i goto LA almost every year, it's my favorite city to visit.
For car rental companies, i'd suggest going with one of the bigger name companies like Enterprise, Alamo, Budget, etc. The cheaper ones usually don't have shuttles to the branch. Most rental car companies don't have any cars in the actual LAX airport, so you have to catch a shuttle ride there. Enterprise has the fewest shuttle buses so you will be waiting at least 15-30 mins, but they also have the cheapest rates. Budget, Alamo, etc will have more shuttles, but higher prices. Up to you what you want.
For insurance, my auto insurance policy covers rental car insurance as well. As a minimum, you should have $1million coverage, but $2million would be better since it is the states. The rental car company will try to tell you to get their coverage because if anything happens the claims will be a hassle etc. Some will even tell you that your car insurance will not cover anything. Don't believe them. They make their money on insurance coverages.
As for things to do for family, I'd highly recommend going to Disneyland and California adventures. This place is simply magical, for young and old. I'd get the park hopper pass if you only plan on staying for a day, but ideally you should spend a day at each park if you've never been there before. Veterans will know which rides are worth waiting for, and how to work the fast passes, and visit both parks in one day. The best part about disneyland, is everything is themed. truly magical. Stay for the fireworks at night.
Another good amusement park, for more rollercoasters and thrill rides, is Six Flags Magic mountain. It's about 2hr drive from LA. Spend a whole day there riding the best rollercoasters in the world. They also have a waterpark there.
If your family likes to shop, drive over to Desert Hills Premium Outlets, near palm springs. It's about a 2 hr drive from LA. One of the biggest outlets that i've been to, and they have lots of premium stores.
Santa Monica is a fun place too for the family. The boardwalk is fun, and there's a small carnival type amusement park. Santa Monica Promenade is a new mall, with lots of shopping, dining, and pubs.
If you like to people watch, spend a day in Venice Beach. Lots of interesting characters there.
I personally skip the Hollywood walk of fame and that area, but it's nice to spend an hour or two there, just to say you've been there. There's not a whole lot to see, and the area is kind of ghetto. I'd recommend spending a few hours there, and heading over to santa monica or venice beach for the other half of the day.
Fill up your gas tank before heading back to the airport. Gas is more expensive near the airport. I believe gas is significantly cheaper outside of downtown.
Another fun place to check out is a place called The Grove. It's got some shopping, as well as a really good farmer's market. Go to the farmer's market for lunch, then go shopping. They validate parking as well.
If you're up for some late night eats, find a taco truck. Best tacos i've ever had came out of a truck. And at $1-2 each taco, it's a cheap and fulfilling meal after a night of drinking.
For nice and clean beaches where you can relax and tan, goto Huntington Beach or Redondo Beach. Santa Monica is a bit busy and dirty.
That's all I can think of for now. Have fun!
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