Explain Supplemental liability insurance in insurance of Rental cars

Author - Webner
30.08.2022
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Supplemental liability insurance

“SLI” stands for Supplemental Liability Insurance, and this is a car rental insurance policy that gives you third-party liability cover. That means, if you (Insured) are involved in an accident with your rental car, You (the driver) are insured to a certain monetary value against any bodily injury, property damage to a third party, or any injuries sustained by the third party because of the rental vehicle, even if the accident was not your fault. SLI is also known as Additional Liability Insurance or ALI.

Why do we need Supplemental Liability Insurance?

Most of the time Car rental agreements in the United States offer only limited coverages or no third-party liability coverage, depending on the state. Let’s take an example a person who rents a car and has met with a serious accident and has to pay the claims for damaging third party property or for injuring the third party out of pocket. SLI coverage helps you (insured) in this situation.

Before buying Supplemental Liability Insurance (SLI), The Insurance buyer must check for the additional liability insurances available and select the policy according to their needs. Mostly the car rental companies offer two types of insurance:

  • Collision damage waiver (CDW), loss damage waiver (LDW), and a deductible to cover losses sustained by the car rental company for damages to the vehicle.
  • Third-party liability insurances cover the property damage or injuries sustained by the third party.
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