Supplemental Liability Insurance
What Does Supplemental Liability Insurance Mean?
Supplemental liability insurance (SLI) is an add-on to a car rental insurance policy that covers claims made by third parties. These claims may seek damages for physical damage to the third party’s property or for injuries sustained by the third party due to the rental vehicle, even if the accident was not your fault.
It is also referred to as additional liability insurance (ALI).
Insuranceopedia Explains Supplemental Liability Insurance
Car rental agreements in the United States typically provide limited coverage or no third-party liability coverage, depending on the state. In a situation where the person renting a car is involved in a serious accident, they may be required to pay out of pocket for claims related to damage to third-party property or injuries sustained by a third party. SLI helps fill this coverage gap in standard car rental agreements.
Before opting for SLI, it’s important to review the additional liability insurance options available. Car rental companies typically offer two types of insurance:
- Collision damage waiver (CDW), loss damage waiver (LDW), and a deductible to cover losses sustained by the rental company for damages to the vehicle.
- Third-party liability insurance that covers property damage or injuries sustained by the third party.
