Supplemental Liability Insurance
What Does Supplemental Liability Insurance Mean?
Supplemental Liability Insurance (SLI) is an optional car rental insurance policy that provides extra coverage for third-party claims. It protects renters from financial responsibility for bodily injuries or property damage caused to others in an accident involving the rental vehicle, even if the accident wasn’t their fault. SLI typically extends liability coverage up to $1 million, depending on the provider.
Insuranceopedia Explains Supplemental Liability Insurance
Why Do You Need Supplemental Liability Insurance?
Most car rental agreements in the U.S. offer minimal or no third-party liability coverage, meaning renters may have to pay out of pocket for damages or injuries caused to others. SLI fills this gap by covering third-party claims, ensuring renters are not personally liable for expensive lawsuits or medical expenses.
What Does SLI Cover?
SLI generally includes:
- Bodily Injury Protection – Covers medical expenses for third parties injured in an accident.
- Property Damage Coverage – Pays for repairs to third-party property, such as vehicles, buildings, or other structures.
- Higher Liability Limits – Extends liability coverage beyond state minimums, often up to $1 million.
Is SLI the Same as Collision Damage Waiver (CDW)?
No, SLI covers third-party damages, while Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) covers the rental car itself. Renters may need both for full protection.
Should You Buy Supplemental Liability Insurance?
Before purchasing SLI, consider:
- Your Existing Auto Insurance – Some personal auto policies include rental car liability coverage.
- Credit Card Benefits – Certain credit cards offer rental car insurance but may exclude third-party liability.
- Rental Car Company Policies – Compare costs and coverage limits before deciding.
Conclusion
Supplemental Liability Insurance (SLI) provides essential third-party liability coverage for rental car users, protecting them from costly legal claims. It’s a smart choice for those without adequate personal liability insurance or those traveling in states with low minimum coverage requirements. Always review your options before renting a car to ensure full protection.
