Quick Summary:
- LIS and SLI both boost third party liability beyond state minimums.
- Typical LIS or SLI limits are often $1m, but vary.
- They cover injuries and damage to others, not your rental car.
- Check your own auto, travel, or card cover to avoid duplicates.
If you are arranging car hire in the United States, especially around New York, the insurance wording can feel like a different language. Two terms you will see frequently are LIS (Liability Insurance Supplement) and SLI (Supplemental Liability Insurance). They sound similar because, in practice, they often aim to solve the same problem: raising your liability protection above low state-required minimums.
This guide explains what LIS is, how it differs from SLI, what typical liability limits look like, and how to choose the right option without paying twice for cover you already have.
What “liability” means for US car hire
In US insurance terms, liability is about harm you cause to other people, not damage to the rental vehicle you are driving. It generally includes:
Bodily injury liability, medical costs and legal claims if someone is injured or killed.
Property damage liability, repair or replacement costs if you damage someone else’s car, building, fence, or other property.
Liability does not normally pay to fix the rental car itself. That is usually handled by separate products such as CDW/LDW (collision damage waiver/loss damage waiver) or a vehicle protection package.
What is LIS (Liability Insurance Supplement)?
LIS stands for Liability Insurance Supplement. On a US rental agreement it usually means an optional add-on that increases the amount of liability protection available while you are driving the hire car.
In many cases, a rental comes with only the minimum liability coverage required by the state where the car is registered or rented. Those minimums can be surprisingly low compared with the potential cost of a serious collision. LIS is designed to supplement that base amount up to a higher limit, commonly shown as a combined single limit such as $1,000,000.
When you buy LIS, you are generally buying insurance that responds if you are legally responsible for injury or property damage to others, up to the stated limit, subject to the policy terms and exclusions.
What is SLI (Supplemental Liability Insurance)?
SLI stands for Supplemental Liability Insurance. Functionally, it is often the same type of product as LIS: an optional supplement that increases third party liability cover to a higher limit.
Why two acronyms? Different rental brands and insurance underwriters use different labels. Some use SLI, some use LIS, some use both. You may also see “ALI” (Additional Liability Insurance) or similar descriptions. The key is not the label, but what the contract says about limits, who is insured, and where the cover applies.
LIS vs SLI, what is the difference in practice?
For most travellers arranging car hire in New York, LIS and SLI are best treated as variations of the same concept. Differences, when they exist, usually come down to how the product is structured and described rather than what it does.
1) Name and paperwork
One provider may call it LIS, another SLI. The policy may be written as an insurance policy, or as an arrangement where the rental company provides coverage through a self-insured programme. Either way, you care about the practical outcomes: limits, exclusions, and claims handling.
2) Limits shown and how they are stated
Some products show a combined single limit (for example, $1,000,000 per accident). Others split limits (for example, $x per person, $y per accident, $z for property damage). A combined single limit is often simpler to interpret.
3) Who is covered
Some policies cover only authorised drivers on the rental agreement. Some extend to a spouse or domestic partner if permitted by the rental company. Always check the rental terms, adding extra drivers incorrectly can void coverage.
4) Territory and use restrictions
Coverage may be limited to the US and sometimes Canada. It will also exclude prohibited uses, such as racing, driving under the influence, or using the vehicle for hire and reward.
Bottom line: LIS and SLI typically aim to do the same thing: increase liability protection above state minimums. Do not assume they are different levels of protection purely based on the acronym.
Typical liability limits you may see
Although there is variation by provider and state, a common selling point for LIS/SLI is a headline limit of $1 million liability coverage. Sometimes it is higher, sometimes lower, and occasionally it is described as “up to” a stated amount.
Why does this matter in New York? Because driving in and around New York City involves dense traffic, pedestrians, cyclists, and higher repair and medical costs. A single multi-vehicle incident can create a large liability exposure. Having higher third party liability limits can reduce the chance that you personally face uncovered amounts if a serious claim arises.
It is also worth noting that liability is not just about immediate repairs. It can include legal defence costs and settlements, depending on the policy wording.
What LIS and SLI usually do not cover
Many travellers confuse third party liability products with cover for the hire car itself. LIS/SLI usually do not cover:
Damage to the rental car, theft, vandalism, or weather events, these are typically handled by CDW/LDW or similar.
Injuries to you as a driver, that might fall under personal accident insurance, medical cover, or your own travel insurance.
Your personal belongings in the vehicle, which may be covered under home contents or travel insurance, subject to terms.
Fines, toll violations, and administrative fees charged by authorities or rental companies.
How to choose LIS or SLI without duplicating cover
The best choice depends on what you already have. Duplicating cover is common because many people have multiple policies that may respond to the same liability claim. Use this checklist before you pay extra.
Step 1, check your personal auto policy (if you have one)
If you are a US resident, your personal auto insurance may extend liability coverage to rental cars. Key questions to ask your insurer include:
Does my policy extend to rental vehicles in New York State?
What are my liability limits, and are they split or combined?
Am I covered when travelling for business or only personal use?
If your own policy already provides high liability limits, buying LIS/SLI may be unnecessary, or you might decide it is still worthwhile for extra protection depending on how your policy interacts with rental company coverage.
Step 2, check travel insurance (especially for visitors)
UK and international travellers sometimes assume their travel insurance covers liability while driving. Many standard travel policies either exclude driving liabilities, or provide limited personal liability that is not designed as auto liability in the US. Even when personal liability exists, it may not respond the same way an auto liability policy does.
Look for explicit wording about “rented vehicle liability” or “motor liability”. If it is not clearly included, do not rely on it as a substitute for LIS/SLI.
Step 3, check credit card benefits, carefully
Some credit cards provide rental car benefits, but these are often aimed at damage to the hire car (collision/theft) rather than third party liability. Liability coverage through cards is uncommon, and when present it may be secondary, limited, or subject to strict conditions.
Confirm whether the card offers liability, not just collision damage. If it does not, LIS/SLI may still be relevant even if you have card-based CDW cover.
Step 4, review what the rental includes by default
Rental agreements typically include the state minimum liability as required by law. That minimum may be far lower than you expect, and it may be split into separate bodily injury and property damage limits. The important point is that “included” does not necessarily mean “adequate”.
When comparing car hire options, focus on the liability limit shown in the quote or terms, and whether LIS/SLI is included, optional, or not available.
Step 5, decide based on risk, driving plans, and budget
Consider your likely driving environment. Driving only short distances outside Manhattan is different from extended road trips. However, higher risk is not just about mileage, it is also about traffic density and the potential severity of claims.
If you do not have a robust auto policy that extends to rentals, LIS/SLI can be a practical way to increase liability protection for a relatively small daily cost compared with the size of potential claims.
New York car hire context, where these questions come up
Many people pick up a rental at a major airport and then drive in the city or across state lines. If you are comparing pick-up points, the insurance wording may look similar even when providers differ. You can review location options and vehicle types while keeping an eye on what is included in the quote, such as when arranging car rental at New York JFK or comparing nearby airport alternatives like car rental at Newark EWR.
Vehicle choice can also influence your comfort with limits. Larger vehicles may reduce some risks but increase others, such as blind spots or parking challenges. If you are selecting a bigger model, you might look at options like SUV rental at JFK or moving groups with van rental at Newark EWR, then decide whether higher liability protection feels sensible for your plans.
Questions to ask before you accept LIS or SLI at the counter
Insurance decisions are easiest when made in advance, but sometimes you will be asked at the desk. Keep it simple and ask:
What is the liability limit included with this rental, and what does LIS/SLI increase it to?
Is the limit a combined single limit or split limits?
Who is covered to drive under this policy, and are additional drivers included?
Does the cover apply in all states I will drive through, and is Canada included?
What exclusions apply, and how are claims handled?
If the staff member cannot clearly explain the limit and what it covers, request the written terms. The decision should be based on the limit and wording, not just the acronym.
Common misunderstandings to avoid
“I bought CDW, so I do not need LIS.” CDW is about the rental vehicle, LIS/SLI is about other people and property. They solve different problems.
“My travel insurance covers everything.” Travel policies vary widely. Many do not provide US auto liability coverage in a way that substitutes for LIS/SLI.
“LIS and SLI are different products, so I should buy both.” They generally overlap. Buying both is usually not possible, and if it is offered under different names, treat it as a red flag and get clarity before paying.
“State minimum liability is fine.” Minimums are legal thresholds, not a recommendation. Large claims can exceed them quickly.
Key takeaways for choosing the right liability option
When arranging car hire in New York, focus on outcomes. Whether the add-on is called LIS or SLI, your goal is to understand the liability limit, who is insured, where the cover applies, and what exclusions could leave you exposed.
If you already have strong liability coverage through your personal auto policy that extends to rentals, you may not need the extra supplement. If you do not, LIS/SLI can be a straightforward way to raise protection to a level that better matches US claim costs.
FAQ
Is LIS the same as SLI for US car hire?
Often, yes. LIS and SLI are commonly different labels for supplemental third party liability protection. Always confirm the stated limit and the policy terms rather than relying on the name.
Does LIS or SLI cover damage to my rental car?
No, not usually. LIS/SLI is about injury or property damage you cause to others. Damage to the rental vehicle is typically covered by CDW/LDW or a separate vehicle protection product.
What liability limit should I look for in New York?
Many supplements advertise a $1,000,000 limit, but the right level depends on your existing insurance and risk tolerance. Check whether the limit is combined or split, and what is already included.
Can I rely on my credit card for liability cover?
In most cases, credit card rental benefits focus on collision or theft damage to the hire car, not third party liability. Verify your card’s terms specifically for liability before declining LIS/SLI.
Will my UK travel insurance cover liability while driving a hire car in the US?
Sometimes it offers personal liability, but it may exclude motor liability or be insufficient for US auto claims. Review the policy wording carefully and consider LIS/SLI if motor liability is not clearly included.
