Third-Party Incident: Joegoauk Goa BY CC BY-SA 2.0
First the good news; all the rental giants offer Supplemental Liability Insurance (SLI) at most US locations, though it is optional, and renting a car does not require this coverage. Now for the bad news, rental car operators are notorious for leveraging their insurance products, pricing them excessively and rendering coverage unaffordable. Not so, if you purchase SLI coverage direct from here at Bonzah.com.
Here at Bonzah.com, we fully recommend and endorse that people planning to rent cars should accept all third party coverage, but not at any cost. The various rental insurance rates often end up higher that the rental hire costs, which is absurd. Bonzah to the rescue! We offer affordable SLI coverage that is fair, affordable, and no less effective in the event of a claim. It’s awesomely simple to purchase, just click here.
Supplemental Liability Insurance Explained in Simple Terms
Put simply, SLI is a special optional service offered by rental car companies - and others - when you rent one of their vehicles. Renters should regard it as an "Excess Automobile Liability Insurance Policy." It aims to provide additional liability insurance, within specified limits, over and above the benefits set down in the Rental Agreement.
More specifically, SLI insures the renter and other authorized drivers as defined in the RA against claims made by third parties against them. This includes cover for bodily injury/death and property damage caused by the use or operation of a rental car in terms of the conditions agreed to in the Rental Agreement.
Know About the Limitations and Exclusions
As with all insurance coverage, limitations and exclusions apply to all rental car insurance, including Supplemental Liability Insurance. SLI covers injuries to others up to $1M, with a $200K max per person, but restrictions apply. Disregard the Rental Agreement conditions at your peril. Quite right, you read correctly!
Forget the argument that the rental agent did/did not explain contractual matters before you accepted the RA – you signed an agreement! Any abuse of conditions you agreed to and accepted upon signing are cause for repudiation in all insurance cover. This is fundamental worldwide policy in matters insurance.
How SLI can Affect Your Private Automobile/Umbrella Insurance
As a renter, you should be aware of potential conflict before accepting any rental car insurance. There is no doubt that rental car insurance befuddles the hirer. Here at Bonzah, we wish to clear the 'smoke and mirrors' mind-set the rental giants like to play with at RA signing time.
Renters should know SLI is in excess of what primary policies people already have via their auto/umbrella, credit card , state minimum liability requirement, etc. For example, only when the primary limit is exhausted does the SLI kick in. This is why the product is termed Supplemental Liability Insurance. In addition, if a renter doesn’t have an auto policy, nor any liability/umbrella policy, SLI would act as the claim policy if accepted at RA signing time.
Policy Exclusions in Play
Typical Rental Company Exclusions that would Preclude SLI:
- Any Prohibited Use of the Car as described in the RA
- Bodily injury to - or property damage - to any Insured
- Uninsured Motorist/Underinsured Motorist coverage are not covered
- No Fault and other supplemental or optional coverages normally excluded
- Punitive or exemplary damages to the extent permitted by law
Above All Else, Check Before Signing the RA, Never Assume
Underinsuring is not something anyone renting a vehicle should risk. Read and understand the contract in full. It is also a timely reminder for renters to understand the important terms and conditions set by rental car companies. Always do this before signing the RA and driving off. Never be shy to ask questions before accepting - or rejecting – the various insurances offered.
Sponsor’s Note from Bonzah
Before accepting your rental car, review third-party liability Insurance options with a care and a prayer in mind. This leaves you with peace of mind to enjoy your motoring experience responsibly. Safe travels!
Traveling to the United States or Canada and need Supplemental Liability Insurance for your rental car?
Who is responsible for including liability insurance for rental cars?