SLP covers some or all of those costs, depending on the amount of coverage you purchase. If you are involved in an accident that affects other people, you could be liable for medical expenses and property damage from the other party. Unfortunately, collision damage only covers any expenses related to the vehicle itself. Supplemental liability protection (SLP).So if you damage the car without CDW coverage in place, the rental company’s insurance will pay for the expenses upfront, and you will have to reimburse the rental car company for those costs. It’s worthwhile to note that rental agencies purchase damage insurance on the vehicles they own, according to Riley Spiller, a founding partner of insurance brokerage Noble House. Collision damage includes anything from a dent in the bumper to a full-on wreck you will not have to pay for any of those fixes. This coverage prevents the rental car company from holding you responsible for repair or replacement costs if your rental car is damaged in your possession. Some of these names can vary slightly from insurance company to insurance company, but here are the basics of what they cover: Rental car policies typically have multiple components, and you can choose which ones are best for you. Rental car insurance protects your temporary vehicle for the duration of your booking. ( These companies don’t require a credit card when booking.) What is rental car insurance? (Photo by Chris Dong/The Points Guy)Īs the name states, this type of auto insurance differs from the policy you hold for your current car. However, rental companies can require a deposit for the car, Pearce told TPG, and have you pay for the booking with a credit card. And most car rental companies do not require you to have proof of existing car insurance when getting a car. Car rental companies cannot require you to purchase car rental insurance when you pick up your car, according to Ryder Pearce, CEO and founder of Skip, a company that helps individuals navigate government services and information.

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