What is additional liability insurance (ALI) intended to cover?

Additional liability insurance (ALI) is designed to provide extra protection in the event of accidents involving rental vehicles. This insurance covers costs associated with bodily injury or death of third parties and any damage to their property that may result from an accident while using a rental car. This additional layer of coverage is crucial because standard rental car agreements often have limited liability coverage, and drivers can face substantial financial responsibilities if they are found at fault for an accident.

While ALI pertains specifically to liability for accidents involving others, it does not cover the rental vehicle itself, travel incidents, or personal property like lost luggage. Understanding the scope of ALI is essential for travelers who want to ensure adequate protection in the event of a mishap during their car rental.