AboutDenise Expertise I am a licensed Property/Casualty agent in the state of Wisconsin, a Certified Insurance Counselor and a Certified Insurance Service Representive, with a 15+ year background in personal insurance underwriting. I am currently working in the Homeowners and Auto field, and was licensed in Life and Health insurance years ago. I can provide input if you will give me a "one paragraph what`s the story", however depending on the situation, do note that as policy forms and endorsements vary by the state, the information may be general and educational in nature.
Expert: Denise Date: 7/18/2008 Subject: hire car insurance
Question I am a UK citizen, went to Los Angeles, hired a car, they sold me RLP only,I didn't have to show passport or any proof of insurance drove away, had a crash. I find out i have no insurance now they want me to pay for all damages / losses. who is in the wrong? I was under the impression RLP was good.
Answer Hi Martyn-
Rental car companies offer three types of coverage, and it is your option as the leasee to decide what coverages you want to purchase. RLP is Rental Liability Protection, which gives you the minimum liability limits required for the state that you are in. You are also offered SLI, which is Supplemental Liability Insurance, which gives you excess liability over the minimum. This is highly recommended, as the minimum limits for bodily injury are very low, and it is very easy to use up the minimum limits due to the high cost of medical injuries, and how expensive vehicles are to repair or replace now. Finally, they offer CDW, Collision Damage Waiver. This is also very good to purchase, as this provides coverage for the vehicle you are renting, whether or not you are at fault. It also provides coverage for the rental car company's loss of use of the vehicle, which you are responsible for. Even if you carried auto insurance on your own which would cover the damage to the rental car, it would not cover the loss of use.
On the rental agreement, you likely had to initial which coverages you chose to pay for, and in the rental agreement confirm that you were offered all available coverages. If you were at fault in the accident, you would have some protection (likely only $20,000 per person, $40,000 per accident) for the injuries you caused the other party(s), and also an amount for Property Damage (to the other party), probably of $10,000. It is not required to carry Physical Damage coverage for the vehicle you are operating, so you would have needed to purchase the CDW to have that coverage. If you put the charge for the rental on your credit card, you may want to see if you have any coverage through your credit card for this. There are a few credit card companies that do offer some extra protection. If not, I'm afraid you are legally liable for the damages you caused to the rental car company vehicle, their loss of use of the vehicle, and also damages to other parties that exceeded the limits of the RLP coverage if you were at fault. Sorry I can't be of more help. :) Denise
