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Rental Car Insurance While Traveling on University Business

An individual renting a vehicle contractually assumes liability for any loss or damage to that vehicle regardless of fault. Collision and liability coverage is automatically provided either by the university's self-insured program, by the University-sponsored corporate charge card or procurement card or Enterprise/National contract when used to rent the vehicle in the U. S and Canada. The car rental companies offer collision damage waiver, also known as optional vehicle protection or loss damage waiver (CDW/LDW) and liability or supplemental liability coverage (SLP/SLI), along with other coverage types. You should decline these coverages within the U. S. and Canada except under the circumstances notes below. We recommend that you always use your University-sponsored Corporate Card or procurement card when renting a car as it may provide an additional layer of physical damage coverage for the rental car at no cost to the University. The card holder should be the renter; other faculty/staff should be listed as additional drivers.

The University policy requires that CDW/LDW coverage be purchased under the following circumstances:

  • Vehicles rented in any country other than the United States or Canada
  • The following kinds of vehicles rented for use regardless of the method of payment used if not rented from Enterprise or National domestic locations:
    • Passenger vans with seating capacities greater than 8
    • Trucks or other similar vehicles rented for the primary purpose of transporting any type of cargo or property
    • Sports or utility vehicles to be used off of maintained roads
  • Rentals of vehicles for use within the United States and Canada by authorized foreign national guest of the University

Deductible: There is a $500 deductible for any vehicle liability loss when the claim is paid by the University self-insurance plan. There is no deductible for physical damage losses to the rental vehicle.
Reporting Claims: All accidents involving rented vehicles are to be reported in accordance with procedures established for reporting accidents involving University-owned vehicles. In the event of an accident with rentals from Enterprise/National agencies, the renter should complete the report form with the renting agency and complete a form UM 5.  The UM 5 should be submitted to your campus claims coordinator along with a copy of the rental agency report. 
If you rent with another rental agency, they should be advised to submit proof of loss and invoices of damages to the campus claims coordinator. If a damage deposit is required, employees should use their University-sponsored corporate charge card and then request reimbursement via the claim process.

If the vehicles was rented using a University-sponsored corporate charge card or procurement card you must contact 1-800-MC-ASSIST (1-800-622-7747) within 30 days for physical damage coverage of the rental car. They may request the renter to submit copies of the rental agreement, the charge card receipt, police report (if applicable), the rental company accident report and a front and back copy of the renter´s driver´s license. Please review your credit card benefits brochure for filing the claim. When renting a vehicle with a purchasing card at non Enterprise/National agencies, MasterCard will be the primary physical damage insurance provider.
If you need additional information on these policies, or need to purchase insurance, please contact us. We will be happy to discuss the issue.

Reviewed 2011-10-20.

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