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Car hire insurance (including SLI)

Just wondering if anyone has any understanding of the various companies offering car hire insurance as per MSE link on https://www.moneysavingexpert.com/travel/cheap-car-hire/#excess and in particular whether there are any downsides (other than needing sufficient credit on credit card to pay out the costs to the rental company, before claiming them back from the standalone insurance company)?

I've looked at various policies, and the annual policies seem to be good value, and cover the excess costs and also damage to underside, windows, tyres etc, that often aren't covered under the basic insurance.

My worry, by declining the extra insurances offered by the rental companies, is whether there is a risk of declining something that might not be covered by the standalone insurance? In particular, SLI or supplementary liability insurance. Some of the policies on the MSE comparison site ask about SLI, although the impression I get is that this applies only to some states in the USA, and that generally Liability Insurance is covered in the basic rental costs. I've looked at the policy that comes highest in the rating for Which? magazine - cover4rentals.com - and their policy doesn't include SLI.

My understanding is that SLI is what domestic car insurance calls Third Party Insurance, and that it's covered in the basic car rental fee.

I just don't want to end up paying twice for insurance, otherwise it defeats the point!

Thanks

Alan

Comments

  • DullGreyGuy
    DullGreyGuy Posts: 15,736 Forumite
    10,000 Posts Second Anniversary Name Dropper
    AlanF said:
    Just wondering if anyone has any understanding of the various companies offering car hire insurance as per MSE link on https://www.moneysavingexpert.com/travel/cheap-car-hire/#excess and in particular whether there are any downsides (other than needing sufficient credit on credit card to pay out the costs to the rental company, before claiming them back from the standalone insurance company)?

    I've looked at various policies, and the annual policies seem to be good value, and cover the excess costs and also damage to underside, windows, tyres etc, that often aren't covered under the basic insurance.

    My worry, by declining the extra insurances offered by the rental companies, is whether there is a risk of declining something that might not be covered by the standalone insurance? In particular, SLI or supplementary liability insurance. Some of the policies on the MSE comparison site ask about SLI, although the impression I get is that this applies only to some states in the USA, and that generally Liability Insurance is covered in the basic rental costs. I've looked at the policy that comes highest in the rating for Which? magazine - cover4rentals.com - and their policy doesn't include SLI.

    My understanding is that SLI is what domestic car insurance calls Third Party Insurance, and that it's covered in the basic car rental fee.

    I just don't want to end up paying twice for insurance, otherwise it defeats the point!
    In the UK all Motor insurance must provide at least unlimited cover for bodily injury and £1m for third party property damage. Most consumer insurance will provide unlimited BI and £20m for PD. Across Europe most countries are similar with substantial limits as a minimum standard. The legal obligation is with the registered keeper or owner as well as the driver.

    In the US it varies by state, in FL the legal minimum is $20,000 BI and $10,000 PD. Obviously this is just the limit of the insurance not of your liability so hit a pedestrian and make them quadriplegic you'll get a $10m bill for which your insurers will pay the first $20k and you have to pay the remaining $9,980,000. The legal obligation is with the Driver

    What's included and not included will depends on how you book the car. If you book from the US site directly then it typically comes with either no insurance or the state minimum. If you book directly with a hire car company but using their UK website most automatically include a $1m SLI 

    SLI isn't limited to the US, other parts of the americas have similar low limits, driver responsibility 

    Other countries are totally different, in New Zealand for example all personal injuries from an accident are settled by a public body rather than it being assigned to the "at fault" party nor being limited to only just the non-fault party. 
  • AlanF
    AlanF Posts: 43 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    That's really helpful, and somewhat scary! It sounds like really what the standalone car insurance companies are offerring is simply to protect the excess for CDW and for uncovered (in CDW) damage to car including underside, wheels/tyres, windscreen, and keys. So sounds like it's best to book through a UK based company. I often rent in South Africa through Avis - via avis.co.uk not avis.co.za. Interestingly I've looked through their terms and conditions, both general and country-specific, and there is no mention in any of their documents about liability insurance. They do offer extra insurances, but these are all either PIA, or roadside assistance, or theft/damage waivers, with no mention of liability insurance!
  • DullGreyGuy
    DullGreyGuy Posts: 15,736 Forumite
    10,000 Posts Second Anniversary Name Dropper
    What is more scary with the US is punitive damages... in the UK you have to provide indemnification, ie put the third party back in the same financial position as they were before the incident. In the US the courts have the option to go beyond indemnification and apply punitive damages... basically punishment. That is part of the reason why US settlements are so much higher than UK... the real downside however is that in most states it's not legal to insure for punitive damages. There are ways around it using off shore insurances but that adds another level of complexity as for most classes of insurance you cannot just go offshore to buy. 

    Some of the excess protection companies offer SLI if you include the americas in your cover but not all. It's an understandable shift from cover £5,000 excess to cover $1,000,000 liabilities. Even if no claims are made a UK insurer has to hold capital to show they could afford to pay their claims in the event of a 1 in 200 level event (inevitably that is likely to be multiple claims above $1m for them).

    Not very up on my South African law around insurance or liability. I do know Motor is not compulsory insurance. Avis UK includes CDW as standard which excludes the first £655 of liability and maxes out at £262k but covers between. Avis ZA includes CDW too but with a higher initial liability by a little bit. Looking at Hertz ZA CDW is optional so you can take it without insurance
  • AlanF
    AlanF Posts: 43 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Thanks again, really helpful!
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