Supplemental Liability Insurance

PUBLISHED ON Jan, 20 2023


Renting a car can provide you with the freedom to travel at will and convenience. Insurance against accidents and any eventuality can enhance that experience. In most cases, rental companies have minimal coverage on their vehicles. The first question you should ask yourself when renting a vehicle is – Do I need additional insurance when renting a car?

You can choose from the many types of insurances to protect the rented car or the occupants in case of an accident. Along with these insurances, there also is third-party insurance which protects the driver from any liability outside the car.

What is Supplemental Liability Insurance?

Generally, most rental vehicles come with minimum third-party liability insurance (also known as TPL). This means that if in a collision or accident with your rented car another driver or person is injured or any property including vehicles is damaged, this insurance will cover the claims made by the other person i.e., the third party.

In some cases, the basic TPL is quite low and you can purchase Supplemental liability insurance (SLI) to cover you up to the mandatory limits in case of an accident. SLI is also known as accidental liability insurance (ALI) and is offered as a separate product by car rental agencies.

What are the coverage limits provided by SLI?

The SLI coverage limits depend upon the rental agency and also the statutory limits of the country. In the U.S. for example, the maximum combined single limit of liability is $1,000,000 or $2,000,000. The final amount will depend on the type and class of vehicle, or the type of physical injury, death, or the extent of property damage for each accident.

SLI - Supplemental Liability Insurance

Do You Need Supplemental Liability Insurance?

In most countries, third party liability is mandatory and included in the car rental. You need to check on the statutory amount covered by this insurance before going for SLI. If you are not comfortable with the statutory amount then it is better to buy excess insurance or SLI.

If you are hiring a car in the USA and/or Canada:

Most states in the US do not require SLI and so the car rental prices reflect that. However, you need to check the states you intend to travel to for more information. In Canada too, third-party liability is included in the car rental and you can opt-out of buying SLI. Please note that SLI will not protect you from paying the excess in the event that the rental car is damaged. The USA and Canada Car Rental Excess Insurance offered by CarInsuRent offers a piece of mind and reduces your excess to zero in the event that the rental vehicle is damaged.

When you hire a car in Europe:

SLI is mandatory in all EU countries, and car rental charges include the insurance premium. You can still be charged extra as you are liable for high excess costs in the event of a claim. CarInsuRent’s European Car Hire Excess Insurance provides a complete piece of mind when renting a vehicle in Europe, and covers the parts of the rented car that are not covered by the rental company.

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If you are driving a rental car in other Worldwide territories?

You need to check in the SLI requirement in the country you wish to travel to. Most car insurances offer a worldwide SLI coverage which comes out cheap compared to individual countries. This is particularly helpful to frequent travellers or if you are planning to cover many countries or planning for a long stay in a place. Since you might still be liable to the high excess costs in the event that the rental vehicle is damaged, it is recommended to purchase CarInsuRent’s Worldwide Car Hire Excess Insurance that covers damage to the rental vehicle, including damage to Tires Mirrors and Windscreen, even if the damage is resulting from single-vehicle accidents.

What does Supplemental Liability Insurance cover?

SLI covers all claims made by a third party for the physical injuries or death or damage to the third party’s property, in case of an accident or crash where you were not at fault.

What exclusions apply to SLI?

You should check with your rental agency for the detailed exclusions to SLI but the typical exclusions can be –

  • Irresponsible handling like drunken driving by you
  • if you are underage or driving with valid or false papers
  • you cause the accident deliberately
  • the rented vehicle is used for any illegal activities or any prohibited use (check the rental guidelines)
  • the vehicle gets stolen

if you are worried about liability then SLI is a safer and better way to protect yourself, irrespective of the fact whether it is mandatory or not. This also provides greater peace of mind and freedom. Drive safe and stay insured!


Do rental cars need liability insurance?

Most rental cars come with liability insurance for the third party, and it is included in your car rental. If you need additional coverage than the minimum statutory coverage, then you can buy excess or supplemental liability insurance from the rental agency.

Do I need SLI when renting a car?

If your rental car comes with third party liability insurance then you can opt-out of buying additional or supplemental insurance. But you need to check on the minimum coverage in different countries and depending on that, you should buy supplemental liability insurance.


10 Responses

  1. Alexander Williams says:

    Do you cover pickup trucks with SLI when used for personal use only.

  2. Gil Farkash says:

    Dear Alexander,
    Thank you for taking the time to contact us.
    We do NOT cover pickup trucks.
    Have a safe trip
    The CarInsuRent Team

  3. Hanna says:

    I am not sure if my booked rental car has any insurance provided by rental company. Would SLI be good choice for car without any third liability insurance?

    • Gil Farkash says:

      Dear Hanna,

      Thank you for taking the time to contact us.
      There are 3 main types of coverage and I suggest that you check with your rental car provider what kind of coverage they include under your rental agreement.
      1. The basic coverage is for Collision Damage Waiver (CDW) – you don’t want to be exposed to expenses related to damage of the vehicle.
      2. The 2nd coverage is Theft Protection – Needless to say that you don’t want to be liable for this loss in the event that the vehicle is stolen.
      3. The 3rd coverage is related to the 3rd party liability – Supplemental Liability Insurance insures you for injuries to other drivers and their vehicles and it is recommended to purchase SLI coverage in the event that the rental company doesn’t include this coverage under your rental agreement (or if you think that the limit will not cover you in the event of a serious accident).

      Our policies reduce the excess in the event of damage or theft to zero, but we do NOT offer SLI coverage.

      Have a safe trip.
      The CarInsuRent Team

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Frequently Asked Questions (FAQ)

Can I cancel my policy before my trip?

You can cancel your policy within 14 days of receiving your PDS and Certificate of Insurance. The premium you have paid will be refunded to you in full, as long as you have not started your trip and do not want to file a claim of any sort related to the policy. Once this 14-day period has passed, you can still cancel your policy but you will not receive any refund.

Does CarInsuRent cover Sand and Ash Protection and Gravel Protection?

Our Iceland policy include Sand and Ash Protection (SAAP) and Gravel Protection (GP).

What is Sand and Ash Protection (SAAP)?

Sand and Ash Protection (SAAP) is a type of insurance coverage that is designed to protect rental cars from the potential damage caused by volcanic ash and sand in Iceland. Certain areas of Iceland still have loose ash and fine sand from the Eyjafjallajökull eruption, which can blow around and damage vehicles. SAAP is a specific waiver that was created to cover this type of damage, as Icelandic insurance companies do not include it in their Collision Damage Waiver. This coverage is optional, but highly recommended if you plan to drive in Iceland. Camping Iceland, a local car rental company, claims that SAAP will serve you well and recommends it for all rentals.

When is it Common for the Wind to Toss Sand Onto the Roads?

Sand can be hurled onto roads in Iceland during the Sand & Ash period, which typically occurs in February, March, and April. During this time, the snow has only just thawed out and the grass hasn't grown sufficiently to keep the sand in its place. This can lead to damage to vehicles driving on the roads. It's important to note that sand and dust storms, which can also cause visibility issues for drivers, typically occur when strong winds lift large amounts of sand and dust from bare, dry soils into the atmosphere.

What does CarInsurent Sand and Ash Protection in Iceland cover?

Due to the recent volcanic eruptions in Iceland the risk of damage to the paint and windows of the cars has increased. Our Sand and Ash Protection (SAAP) insurance can cover damage to the paint, windows, lights, plastics, chromes, and wheels of the rental car caused by sand, gravel, ash, pumice, or other earth materials being blown onto the vehicle. The deductible for SAAP insurance is typically 50,000 IKR for all rental cars in the fleet. No other insurance covers these damages and insurance companies refuse to cover them. Even though all safety rules are followed damage can happen when, for example, wind starts blowing more than was forecasted thus moving the sand/ash and damaging the car.   [carInsurent_sc_get_quote_cta cta_text="See How Much You Can Save on Your Car Rental Insurence" cta_btn_text="Get Started"]  

Does the Insurance Cover Lost Keys and Remote Locking Devices?

Yes. CarInsuRent insurance covers lost keys and remote locking devices. Losing the keys to a rental car can be a stressful and frustrating experience. Many people wonder if their rental car insurance will provide coverage for lost keys. Rental car insurance policies may vary in their coverage for lost keys. Lost keys are not typically covered by car insurance for loss or theft, as keys are considered personal property.

Steps to Take If You Lose Rental Car Keys

Losing rental car keys can be a frustrating and stressful experience, but there are steps you can take to get back on the road quickly. Here are some tips based on the provided web search results:
  1. Contact roadside assistance: Most rental cars come with a roadside assistance phone number that you can call in the event of a lockout or lost keys. You should be able to call and have someone sent out to help with your situation. Note that our car hire excess waiver insurance may reimburse you for roadside assistance.
  2. Check for a spare key: Some rental cars come with a spare key that is located in a magnetic box under the car or in the trunk. If you have rented a car that has a spare key, this could be an option to get back on the road quickly.
  3. Contact the rental car company: Contact the rental car company as soon as possible to let them know what has happened. They may be able to provide you with a replacement key or arrange for a locksmith to come and assist you.
  4. Check your insurance policy: If you take out our car hire excess insurance you may have coverage for lost or stolen rental car keys.
  5. Take preventative measures: One of the best ways to avoid losing rental car keys is to make them harder to lose. Attach a big, noticeable lanyard or keychain to the keys, something that will make a noise when moved, to help you locate them quickly. Additionally, always double-check that you have the keys with you before leaving the car.
  We encourage you to read our full guide to learn everything you need to know about travel car hire excess insurance.   [carInsurent_sc_get_quote_cta cta_text="See How Much You Can Save on Your Car Rental Insurence" cta_btn_text="Get Started"]   Please see the Policy Wording for the complete terms and conditions.

Find the answers you’re looking for to the most frequently asked car hire insurance questions as well as other questions relating to our products and services.

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