Liability Insurance

I know this question comes up often. I also know that my credit card will not cover liability on the island. What I am unsure of is whether we really need it. I've read (here and elsewhere) that the rental companies on the island are required to carry liability insurance that covers their clients for the maximum amount of liability permitted under Dutch and French law. My understanding is that this is $50,000. Can anyone confirm, unequivocally, that this is correct? I'm not looking for opinions here, but facts.

Edited to add that I have learned from a reliable source that liability insurance is not necessary. The rental companies do, in fact, carry it on all of their cars; if you purchase it, you're simply reimbursing them their cost, and it's not necessary for you to have it to cover yourself.

I have learned from a reliable source that liability insurance is not necessary. The rental companies do, in fact, carry it on all of their cars; if you purchase it, you're simply reimbursing them their cost, and it's not necessary for you to have it to cover yourself.

I guess that is why hertz advertises free liability included with rental.

I've asked that question so many times, and never got a satisfactory answer.
I have been told the same thing you are saying, but I could never find out if it was true.

There is a new car rental place that everyone is very happy with, but I found that if you add their tax
(different from our car company) and their liability(also different) it ends up more expensive then the company we have been using for years.

If what you said, is true, we have been paying a lot of money for nothing!

Maybe Leslie can chime in and clarify this.

I will be interested in the answer too. I always get the liability insurance just for peace of mind. If it turns out to be the case that the rental companies already carry it then it appears that Hertz is about the only honest rental company down there because all the other companies offer it for a price.

I probably should have edited my original post. This is the answer.

Ah ok. Didn’t realize you had an answer already. But do you really feel confident you are covered sufficiently? I wouldn’t want to have to come up with $50,000 even if that is the max exposure.

So you Folks are saying that a Company that has cover it's total cost and expenses must give this a free to it's clients ? Companies have to also cover some of their cars with Comprehensive insurance , hence also offer this for free . You wouldn't know the thousand of dollars that companies has to spend every year to cover their cost of operation.

I feel very comfortable. The point is that, even if you pay for the liability insurance with the rental company, you're not getting any more coverage than they already have.

And why doesn’t the rental company just bake the cost of the liability insurance into the rental payment and tell people they are covered like I assume Hertz does.

I guess some think that quoting a lower rate initially will get them more business, and it probably does.

Lesley, I didn't say that at all. I think it's important for renters to understand what they're paying for. Many companies offer the liability insurance as an add-on, and not everyone knows it's not really needed to protect them from liability on the island.

Georgia, I guess my question is will you feel 100% comfortable not paying for liability insurance now? I’m not sure I will.

So your saying your rental price includes liability but you don't bother to inform the renter and charge extra for it. Wow.

Sir , liability insurance is optional @ $ 6.00 per day .

Think we know this BUT what most would like to know and has actually not been answered in such a manner that its absolutely clear. If one is in an accident that involves the liability part as some seem to think that liability is generally included by most renters (but if you pay extra you are paying for nothing as one is covered anyway) will one be totally covered? fwiw, I don't think so, as apart from Hertz ,I feel pretty sure the small print will tell you differently, therefore if you want total coverage you cough up. The way its been perceived by some here, is that they wont tell you they already have coverage included, you just dont know it.

So which is it pls?

Once you decline the liability it your resposibility.

I guess the question I want answered is, Does the rental company have to carry liability insurance on their cars by law in case there is a legal suit? and ,
If I check the box where I will pay the X amount of dollars a day for the liability insurance , Am I just reimbursing the cost to the rental car company? So that will mean I have the liability insurance whether I check the box or not?

Wendell

Sir please ask the company that you are dealing with on this.
Thanks.

I never got a good answer on liability coverage. It is my understanding that unlimited liability is required by law to be included in all rentals on the french side
I never got a good answer on rentals on the dutch side some agency will provide you with coverage for a additional daily fee but the limits on the coverage is 50000 dollars.
Hardly seems enough if a serious accident happen with personal injury . If you search old threads i started last year the response was 50000 is plenty of coverage in st martin people as law suits dont go for much money .

Hertz previously said they provide unlimited liability included with there daily rental fee.

Now if a french rental gets on a accident on the dutch side or vice a versa
I dont know how they determine liability limits or if there is limits you can claim in courts of each country

Your home car insurance policy or credit card insurance unlikely provide you with liability coverage

Almost make a good argument for taking taxis but having a car on the island is almost a necessity

We have CHUBB on our house and I added a Masterpiece policy to cover worldwide liability on rental cars up to 60 days at a time. We are down frequently and thought this was the best approach.

Tim, I do. We haven't paid the additional fee for liability insurance for years. Of course, you should do what makes you feel comfortable!

I have been told if you pay for liability insurance, you are covered for $50,000. If you do not get liability you are covered for $0. I choose to be covered.

I am asking you. If I rent from you is liability included if I don't pay extra and don't decline. Simple question for a yes or no answers.

You might be covered anyway if you add it or not the way it is being discussed.

From what I have read here so far, it appears that liability insurance is another profit line item for the rental company. I suppose that is why some will charge $5/day and others $10/day for those that choose coverage. Most of us know that it is likely that your credit card will cover comprehensive insurance. Once more we see the importance of getting a TOTAL quote when shopping for a car rental.

People need to regularly check their personal credit cards as some have discontinued rental comprehensive coverage all together, with Discover Card being one of them.

Thanks J.D .

I have been told otherwise. I've been told I'm covered for $50,000 whether I pay the extra or not, because the rental company is required by law to carry it. Again, as I said to Tim, each of us needs to do what makes us comfortable; I'm comfortable not paying extra for something that's already included. Kind of like tipping on the French side (not to open another can of worms...)

In France and the Netherlands, it is required that car rentals include 3rd party liability insurance.

https://www.autoeurope.ca/driving-information/france/

https://www.autoeurope.ca/driving-information/netherlands/

Since French SXM is a collectivity of France and Dutch SXM is part of the Kingdom of Netherllands, I assume they are bound by the same laws and therefor, liability is included.
This suggests that the 'optional' liability is not really required.

Which is exactly what I was told. It's possible that some of the companies are lowering their daily rate to make it look cheaper than others, and then either offering or requiring the additional liability to make up the difference. If you know the laws, then you will understand what you're paying. I don't actually mind that practice , as I consider it a marketing tactic. The key, whenever you travel, is to educate yourself on the laws and customs of your destination.

Correct, just like the previously mentioned tipping/service charge on the French side.

I don't consider paying for something that is legally required to be provided, without a full disclosure, to be an honest business practice.

To bad only a few know about this practice because of this forum. Rental companies are banking on the hopes no body knows it's really already included. I agree with you it is both dishonest and unethical.

when I rented a car on the french side it included unlimited liability as per french law

In Aruba goes by local country ie aruba law not Netherlands and seems to be for 90000 dollar and not a million

I don't know what the st martin dutch law is and yes some rental company charge you 6 dollar day for 50,000 of coverage if there is already a million dollar policy in force that would seem not to be a worthwhile purchase

as i said never could find out what is the law on either side of st martin

Waiting for Kenny's answer to Scubaman.

What about renting a car on the Dutch side but the car has French side license plates?

Then you have to comply with German law unless the car is made in a French or Dutch country. Note that any tip then is not included.

Too funny Todd!!!!

Yes, we know the law in France and we know the law in the Netherlands. It is up to each individual to decide if they are comfortable ASSUMING that there isn't some local law that doesn't override that. I'm not going to assume that ALL laws of either country apply exactly the same in their affiliates. I have no idea how those countries decide upon who has jurisdiction in each area. I'm thinking that there are other areas where the local law is different than that of France or the Netherlands so until I see a source in writing that applies to Sint Maarten and St. Martin I'm going to continue to pay these few $$ for liability insurance for my peace of mind. In the big scheme of things it is worth it TO ME. YMMV.

Hahaha. Good one.

Me too.

I may be wrong but I think Kenny has already responded that if you decline liability coverage the damage costs are on you.

I think he did too. Obviously it makes sense they are completely insured and try to recover a piece of that. We paid some kind of declinable insurance last winter at Hertz. Can’t remember if liability or collision. I was told if I didn’t pay it a deposit would be put on the card. As I didn’t want to eat up credit limit I took the insurance and they still charged me the deposit which was refunded after the trip.

So. Don't decline it and your still insured. Looks like a borderline scam to make more money on unsuspecting renters.

I rent from hertz all the time. If you want your CC to cover collision you have to decline theirs. Liability is automatically covered. I never worry about a hold on my CC as if I owe that close to my limits I shouldn't be on vacation in the first place.

No he hasn't but rather talked around it saying if you decline it its on you. Why would you decline it if its already there to be included. Makes no sense. I know a lot of posters here use him and stand by him but are paying for something you should not have to. Glad this was brought up and discussed to get this practice out in the open. A simple yes or no answer would be great as to the island laws regarding this from a company in the know.

This horse has been beaten enough.