USA Supp liability insurance - paying out?

trambly

Hi folks.

Okay I have booked my Florida USA trip etc and I have my rental car which includes a good range of insurances including Collision Damage Waiver (with no excess) but there is still the question of Supplementary Liability insurance SLI which isn't included.

This is a cover to protect the driver being chased by 3rd parties for damage injuries incurred that were not covered by you car insurance.

This cover is usually a 1 million dollars US or more.

So my question is this. Renting a car on your credit card they can get you for the damage done to the car to a certain limit but what happens if the car is written off and/or people are chasing you for large amounts of money?

Do the companies that sell these add-on covers sort it out quickly? I mean you can't cover it on your credit card and wait to get a refund from the insurance company as the amount is too large.

Also the car rental company are going to want something in place before you leave their office or the USA.

So what is likely to happen in these cases? The insurance companies talk about a filling out a claim but what is the delay in sorting things out for the insured person so that he can get matters sorted out quickly?

Anybody any thoughts or experiences?

Regards

BritAbroad

It might help if I explain a bit about how car insurance works in the US (at least in my state). A claim is not considered an admission of liability. In the event of an accident, each party can choose to have their repairs done through their own insurance company. They'll have to pay their own deductible (excess), but it's generally the quickest way to get repairs organised and they have more control over where repairs are carried out, etc. The insurance company will pay the costs, then they'll pursue whoever was liable. Doing it this way does not affect the innocent party's insurance costs. The guilty party's insurance will eventually make a settlement with the innocent party, and with their insurance company.

The innocent person can also choose to make the claim directly against the guilty party's insurance. There are many reasons why they may choose to do this and their own insurance company may well encourage it. The guilty party's insurance will then organise repairs etc, so it takes a little longer as they need to establish liability first.

If anyone is hurt a separate medical claim will be opened against the guilty party's insurance.

Round here, you MUST call the police if damage is likely to be over $1000 or if anyone is hurt. Don't know if other states are the same but it's worth checking. I would imagine there will be some variances in how insurance works from one state to another.

It's also worth checking who's underwriting these add-on covers. Is it an American insurer? Geico, State Farm, Allstate, American Family, Progressive and Esurance are all major insurance companies, and there's probably others.

trambly

Thanks for the reply.

However the question remains unanswered at the moment. The main insurer will be Alamo and whomever they use. A 3rd party company will supply the SLI insurance.

My question is when the cost is very high and the renter can not pay this amount on his/her credit card ' do these 3rd part insurers act quickly enough to sort things out. I mean I can't just say to Alamo that my 3rd party top up insurer is sorting it out please be patient. The rental company will want it all organised and signed for.

So do these companies intervene quickly enough in a case where there is a big case. Allowing the renter to walk away or return home in my case?

dzug1

You may wish to consult your proposed SLI supplier


I do know that for smaller claims you pay the car hire company and claim when you get home

trambly

Well on further inspection I found that I had EP which seems another way of describing SLI. This Extended protection is what the 3rd part company were selling.'

So now that I have CDW with no excess and EP included I am comfortable I have the necessary to decline the other things that Alamo are sure to try to sell to me.

Still it does leave the question unanswered. If you pay for damage up to the excess coverage on CDW what happens if a 3rd party try to sue you on holiday whilst in the US? Can you return home and wait for the 3rd party SLI/EP to kick in or would it be a mad rush to the airport with a vow to never return to the US?

Knowing how Tony Blair signed up to handing over UK citizens to the US then I suspect that the UK wouldn't work as a hiding place. Luckily I have long since left the UK.

zagfles

SLI is third party insurance, so the car hire company won't be pursuing you, it'll be the third party or their insurance.

Car hire in the US should come with at least whatever minimum third party liability is required by law, but unlike the UK this isn't unlimited, so if the claim is greater than this the third party could pursue you. The limits are quite low and the US courts award even sillier damages than here so you really need this insurance, wherever you get it from. Some UK excess insuerers offer it eg insurance4carhire.