Sometimes referred to as SLI insurance, supplemental liability insurance is an important facet of car hire protection packages. In order to appreciate whether or not you require this type of insurance, it is a good idea to take a closer look at how it functions, the main areas that are protected and its presence alongside existing levels of protection.
What is Supplemental Liability Insurance?
The title of this plan goes a long way towards explaining how it operates. Supplemental liability insurance exists as a means to protect the driver in the event that a rental car is involved in an accident. SLI insurance offers financial protection in regards to claims made by third parties for both bodily injuries and property damage up to an existing point. In many ways, such protection is similar to personal insurance plans purchased within a comprehensive policy. However, the limits offered will normally differ from company to company. In addition, SLI insurance can be acquired separately for those who are hoping for a more robust level of coverage.
What are the benefits of supplemental liability insurance
Supplemental liability insurance will provide the driver with higher amounts of financial protection in the event of an accident, giving the driver of a hired vehicle piece of mind. Depending upon the needs of the customer, various levels of coverage can normally be selected. Although this cover offers financial protection, these policies almost always come with an excess fee. This must be paid to the policy provider before they settle any claims.
It is common for vehicle rental companies operating inside Europe, Australasia and Africa to include SLI within the basic cover offered as part of the rental agreement. Outside of these continents rental companies usually offer limited or no supplemental liability insurance and therefore this must be bought separately. This is especially true for companies such as USA & Canada.
Where does SLI fit into an typical insurance policy
An insurance policy can be broken up into several subcategories.
- Collision damage waiver (CDW) clauses.
- Loss damage waiver (LDW) clauses.
- A standard deductible (car hire excess)
- Third-party liability insurance.
Third-party insurance is often the very same plan as supplemental liability insurance. Depending upon one’s specific needs, it is frequently possible to insure the vehicle for more than is provided within the standard policy.