Supplemental Liability Insurance (SLI)

Definition - What does Supplemental Liability Insurance (SLI) mean?

Supplemental liability insurance (SLI) is to a car rental insurance policy that covers claims made by third parties. These claims could seek damages for physical damage to the third party's property or for injuries sustained by the third party because of the rental vehicle, even if the accident was not your fault.

It is also known as additional liability insurance (ALI).

Insuranceopedia explains Supplemental Liability Insurance (SLI)

Car rental agreements in the United States typically offer only limited coverage or no third party liability coverage, depending on the state. Consider a situation in which the person renting a car is involved in a serious accident and must pay the claims for damaging third party property or for injuring the third party out of pocket. SLI fills in the coverage gap of standard car rental agreements.

Before opting for SLI, find out the additional liability insurances available. Typically, 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 and,
  • Third party liability insurances that cover with property damage or injuries sustained by the third party

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