Liability Insurance for a Rental Car

In virtually every country in the world, a car must be insured for liability coverage; otherwise, it is not allowed on the road. It’s an absolute necessity, but don’t worry—when you rent a car through EasyTerra, liability insurance (Third-Party Insurance – TPI) is always included in the rental price.

What does third-party liability insurance for a rental car cover?

Let’s be clear about this: it covers all damage you cause to a third party while driving the rental car. This includes not only people or other cars, but also other objects. Think, for example, of knocking over a street sign, for which the municipality holds you liable.

There are, however, conditions: if you caused the damage intentionally or if you were under the influence of alcohol or drugs, the insurance will not pay out. This also applies if you violated other terms of the rental agreement, such as if the primary driver was not behind the wheel or if you drove the rental car off-road. In all these cases, you’ll have to cover the costs yourself.

Those costs can be very high, especially if you’ve caused personal injury to someone else and they have to go to the hospital or require long-term medical treatment. Loss of income can also be claimed, as well as any legal defense costs.

If the rental car itself is damaged in a collision, that damage is covered by collision insurance. This coverage is also included as standard when you rent a car through us.

Third-Party Liability Coverage for Rental Cars in Europe / the U.S.

As mentioned above, claims can be very costly if you cause damage to third parties. Fortunately, the standard third-party liability insurance included with our rental cars is more than sufficient for all countries in Europe. The situation is different, however, for countries such as the United States and Canada. Have you ever noticed that travel insurance policies often exclude these countries when it comes to medical expenses, or that you have to pay a significantly higher premium to cover them? There’s a good reason for this: medical care in North America is extremely expensive.

If you rent a car in North or South America, it comes standard with minimum third-party liability coverage, which can vary by state or country. This statutory minimum coverage may be low and possibly insufficient if you want to be adequately insured for third-party liability. We therefore recommend that you carefully review the rental terms and conditions for each offer regarding the included liability coverage. For example, we also offer deals that include what’s known as Supplemental Liability Insurance (SLI), which significantly increases the maximum payout amount of the liability insurance. Enjoy a worry-free trip in North and South America when you rent a car through EasyTerra!

Does third-party liability insurance for car rentals have a deductible?

No, unlike collision coverage and theft coverage, third-party liability insurance does not have a deductible. However, there is a maximum amount that the insurance will pay out if you cause damage to third parties. But rest assured, that amount is more than enough to cover all costs.

Different Terms for Car Rentals with Third-Party Liability Insurance

Third-party liability insurance for rental cars goes by various names in North America, which can be quite confusing. Below, we list the terms you may encounter in addition to “Supplemental Liability Insurance.”

• LIS: Liability Insurance Supplement

• EP: Extended Protection (Alamo uses this abbreviation; in Dutch: Uitgebreide aansprakelijkheidsbescherming)

• ALI: Additional Liability Insurance (AVIS uses this term)

All of these insurance policies essentially amount to the same thing: liability insurance that significantly increases the legally required minimum coverage.

Damage caused with your rental car—what now?

In the event of a collision with another driver, follow the same steps you would if you were in an accident with your own car: fill out the accident report form together with the other party and make sure you both have a copy. Never admit fault, and do not sign any documents with vague wording. The insurance companies will determine who is at fault and who pays for what. Always take photos of the damage and the scene, but make sure to do so safely.

Report the damage immediately to the local rental company, as they sometimes require a police report, even for minor damage. Tip: When you pick up the rental car, save the rental company’s phone number in your cell phone. That way, you won’t have to search for it in a stressful situation.

Essential insurance is always included with car rentals

When you rent a car through EasyTerra, you never have to worry about whether it includes all the necessary insurance. That’s because it always does: all the insurance you need is included. Rental cars booked through us come with collision coverage, theft coverage, and liability insurance.

Please note: as mentioned above, collision coverage and theft coverage almost always have a deductible. The amount of this deductible can vary greatly.

Renting a car with or without an excess?

We do not automatically include excess waiver and comprehensive coverage in our car rental offers. Some other websites where you can compare rental cars do include these options by default, leaving you with no choice. We believe you should be able to decide entirely for yourself under what conditions you want to rent a car. This way, you can better compare rental car prices and determine whether the price difference is worth taking on more risk. The choice is yours!

It’s helpful to know what the English term is for “eigen risico.” The standard term is“excess,”but in the United States, they call ita “deductible.” Do you want to waive that deductible? Then a car with the Worry-Free label is the right choice for you!

Rent a car completely worry-free: Worry-Free!

Most people who book a rental car through EasyTerra do so by checking the “Worry-Free Only” box in our filter system. This way, you’ll only see cars where the deductible for damage and theft insurance is covered. That means that if you have to pay a certain amount in the event of damage or theft, we’ll reimburse you. Guaranteed! What’s more, most Worry-Free cars are also covered for damage to the roof, undercarriage, windows, and tires. Plus, with these cars, you can always drive an unlimited number of kilometers. In other words: enjoy a worry-free vacation—isn’t that what you want?

Arrange insurance and rental car deductible in advance

We strongly recommend that when booking a rental car, you think very carefully about the type of insurance coverage you want. Keep that decision firmly in mind and resolve to politely but firmly decline any (often very persuasive) attempts by the rental company to sell you extras. But again: think it through carefully and know that with a Worry-Free rental car, you really have everything taken care of—which puts you in an even stronger position when facing the rental company’s sales pitches.