Rental Car Insurance Coverage for Injuries to Third Parties and Property



The pleasant folk at Bonzah are delighted you decided to find out more by reading this article about secondary (add-on) rental car insurance. Rather opt for some form of add-on coverage even if you think an incident involving your rental car and other people – or property – seems unlikely.

If something can go wrong, it usually does and it can strike you at any time, burning a hole in your wallet or purse. It may not even be your fault, but simply because you are the renter can have legal consequences. Remember, you have alternative secondary rental car insurance options available from, and they are affordable.

Know About State Minimum Liability Limits for Rental Car Hire

Rental car companies know they are only responsible for the state minimum liability limits, (AKA Financial Responsibility Limits). The rates vary widely from state to state and serve as secondary insurance. State minimum liability applies only once your primary insurances run out. That is, assuming you have primary insurance.

That said, all rental companies punt Supplemental Liability Insurance, but the rates are exorbitant. We believe it is smart to take all the offerings (they are optional), but not at any cost. You can find out more about the various third party rental car insurance products by clicking this link to Coverage is effortless to arrange and we know you'll be encouraged by the affordable premiums too, speak to our agent!

Rental Company Waivers and What You Should Know

Rental agents are canny when it comes inundating renters with unfamiliar acronyms. They hurl concepts such as “CDW, SLI, PAI, PEC” with consummate ease. Not realizing these are optional third party rental car insurance, many renters opt for everything offered and purchase the damage waivers. Wait on, this can add up to more than the primary standalone rental car insurance. Ridiculous!

Remember: All Insurance Sold At the Rental Counter Is Optional

Quite true, but that is not saying that it isn’t necessary. Offering renters additional insurance coverage often duplicates coverage they may already have. This is the primary way car rental companies increase the cost of the rental. The four different types of insurance and insurance-like coverages that rental companies try hard to sell at the rental kiosk are the following, according to an authoritative Car Rental Tip Sheet:

Collision Damage Waiver (CDW) - This is primary coverage for rental car hire that may be included as part of your private auto insurance

Supplemental Liability Insurance (SLI) - If agreed to, the rental car company will supplement the liability insurance that the company has, by state law, to provide

Personal Accident Insurance (PAI) - Many of the benefits under this section duplicate coverage you may already have under your health, life or automobile insurance policies, or duplicate coverage that the car rental company must provide under state minimum liability limits

Personal Effects Coverage (PEC) - Again, this coverage may duplicate cover the renter already has through a homeowner or tenant policy

Putting Your Mind at Rest

In this article, the good people at have tried to demonstrate that additional insurance coverages over and above primary coverage may prove an expensive option at the rental kiosk. Using our third party products will not prove a waste of money because we make it affordable. We provide peace of mind when they kick in after all other coverage runs out. leaving you potentially embarrassed financially.


Who is responsible for including liability insurance for rental cars?