What does a supplemental liability car rental insurance cover?
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It covers damages to another car if you are at fault. Example:
You rent a Ford Mustang and then rear end a Chevy Tahoe. The SLP will cover damages to the Chevy Tahoe but NOT the Ford. You either have to take their Damage Waiver to pay for the FORD Mustang or file with your own carrier.
REVISION: My answer is based on the fact I live in Texas and our insurance rules are backwards. The person below who said I was wrong in incorrect, I am only giving you information regarding Texas insurance laws. I worked for a rental car company for 5 years and am now an adjuster for a insurance company. I know a thing or two about this sort of question.
It provides you and authorized drivers with third party liability protection in “an amount equal to the minimum financial responsibility limits applicable to the vehicle (the Primary Protection).” It also provides Uninsured Motorist coverage (medical payments for injuries caused by an uninsured motorist. (This off my latest car rental receipt)
If you already have liability insurance, check your policy. Most of the time it’s really not necessary to take the rental agency liability coverage.
ADDENDUM: Just saw the above guy’s answer. It’s wrong–he’s referring to collison coverage.