Do You Need a Liability Insurance Supplement When Renting a Car?

When you choose to rent a car, one of the options available to enhance your protection in the event of an accident is Liability Insurance Supplement (LIS) or Liability Protection. This insurance coverage is not required by law to purchase and your personal car insurance policy might already offer coverage for your liability when driving a rental vehicle – so it’s worth checking in advance.

Take a look at this helpful guide and decide whether it’s right for you.

What is Liability Insurance Supplement (LIS)?

For rentals in the U.S., Liability Insurance Supplement (LIS) provides you with up to $300,000** of  protection should third party bodily injury and third party property damage claims be made against you by people injured in an accident. LIS safeguards your insurance policy and/or your personal assets for the first $300,000 (in each case inclusive of any applicable minimum underlying state statutory limits)should such claims be made against you.  LIS provides uninsured/underinsured motorist coverage up to $100,000 per occurrence (in each case inclusive of any applicable minimum underlying state statutory limits) for combined third party bodily injury and/or third party property damage claims.  For rentals commencing in California, no uninsured/underinsured motorist coverage will be provided with the purchase of LIS. there is no coverage for an uninsured/underinsured motorist claim as a result of the negligence of the rental driver. LIS limits may vary in certain states, and terms and conditions apply.

Other insurance types that we offer with our rentals, like Personal Accident Insurance (PAI), Personal Effects Coverage (PEC) or Loss Damage Waiver (LDW) policies, cover the rental car or injuries caused to you. Purchasing a Liability Insurance Supplement protects you in the event of an accident that is your fault, covering any damages to other people’s property and medical costs for other people’s injuries.

What Are the Benefits of Liability Insurance Supplement (LIS)?

Here are some key advantages of opting for LIS when renting a car:

• Third-party coverage: LIS provides coverage for any authorized drivers on your rental, ensuring that they are protected as well.
• Simplified claims process: By choosing LIS, you won't need to report incidents to your personal insurance company. This helps prevent potential increases in your premiums following third-party claims.
• Supplementing credit card coverage: While some credit cards offer insurance coverage for car rentals, it's important to note that they may have limitations and might not provide adequate coverage for third-party liability claims. LIS acts as primary coverage, filling in any gaps left by credit card policies.
• Peace of mind: With LIS, you can enjoy peace of mind knowing that you have significant protection in case of an accident, including coverage for uninsured and underinsured motorists.

How Do I Purchase Liability Insurance Supplement (LIS)?

• Input the detail of your itinerary.
• Choose the car that you wish to rent.
• Select the ‘Protect yourself from liability’ option to add Liability Insurance Supplement to your booking (additionally, you can do this at the rental counter when picking up the car).
• Prepare for the additional cost of LIS which is calculated per day.
• Provide the necessary documentation required to purchase LIS like a driver's license, credit card, etc.

Check out this page to find out the exclusions to this type of insurance and how to file a claim.

Let’s Go!

Now you know about LIS, consider adding it to your next car rental booking for complete protection, whether you go on a short trip or think about purchasing a car and want to test drive it with Hertz beforehand.

Find out more about other additional coverage options available with Hertz.