Rental car - insurance

Question

Hello everyone. I am Italian and I will visit California with a rental car from Los Angeles airport for 1 month. Among the clauses of the rental contract is indicated the LIS (Liability Insurance Select) for $ 300,000. In Italy, the same amount is equal to over € 7 million, for almost all insurance companies. Is this low amount typical for the USA? Do you suggest I choose another rental company with higher amounts? I consider $ 300,000 really low .... I do not want to be pessimistic but not irresponsible and risk

Thank you

Answer

In the United States, rental car liability coverage works differently than in Europe, and it’s common for the basic liability coverage provided by rental companies to appear “low” if you compare it with European standards. A $300,000 liability limit, like the LIS (Liability Insurance Select) mentioned in your contract, is typical for many standard rental agreements in the U.S.

Here are some key points to understand:

Legal Minimums: California law requires minimum liability coverage of $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for property damage. Most rental companies provide coverage above these minimums, but $300,000 is considered moderate, not excessive.
U.S. Liability Practices: In the U.S., personal liability claims can be much higher than in Europe, but $300,000 coverage is sufficient for moderate accidents. Serious accidents could exceed this, but additional coverage is usually optional.
Supplemental Insurance Options: You can choose to purchase additional coverage such as:
- Supplemental Liability Insurance (SLI) – often increases coverage to $1 million or more.
- Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) – covers damage to the rental car itself.
- Third-party travel insurance – some policies include high-limit auto liability for rental cars in the U.S.
Credit Card Coverage: Many international credit cards offer additional liability or damage coverage if you pay for the rental with the card. Check the fine print for your Italian card.
Risk Consideration: $300,000 is above the state minimum, and for most short-term rentals, it’s considered reasonable. If you want peace of mind, upgrading to a higher limit or purchasing supplemental insurance is recommended, especially for a month-long rental.

Recommendations:

Check with your Italian insurance company if your existing auto insurance or travel insurance provides coverage in the U.S.
If you are concerned about high-cost accidents or want extra security, consider SLI from the rental company, which can raise coverage limits to $1 million or more.
Read the rental contract carefully to understand what LIS covers and any exclusions.
Remember that U.S. courts can award very high damages, so higher coverage reduces personal financial exposure.

In summary, while $300,000 may seem low by European standards, it is typical in the U.S. for rental agreements. It provides coverage above the California legal minimum, but for peace of mind and protection against large claims, you may want to opt for supplemental coverage or verify whether your existing insurance covers high-limit liability in the U.S.