Coverage & liability · Travelers + trade
Third-party liability
Also called TPL, liability cover, third-party insurance
The short answerCover for injury to other people and damage to their property that you cause while driving.
What it means
Third-party liability covers what you're legally responsible for when you injure someone or damage someone else's property with the car. It doesn't cover the rental car itself. Most countries require a minimum level, and rental prices in most countries, Canada included, include it; what it covers and its limits vary by country.
Why it matters
Liability claims can be far larger than damage to the car. In the US, what's included varies by state and rental company, often only the state minimum, so check how much is included and whether your own auto policy extends to rentals.
Related terms
- Supplemental Liability Insurance (SLI)Optional US cover that raises your liability protection for injury or damage you cause to other people or their property.
- Collision Damage Waiver (CDW)An agreement where the rental company waives some or all of its right to charge you for damage to the car, usually above an excess. It's not insurance.
Also related State minimum liability, Liability limit, Green card (insurance certificate)