BPM-507 Car Rental Service

Revised April 11, 2013

Car rental services may be used when the cost is less than or equivalent to other means of transportation or when University business activities require it.

Discount Rate Programs Available

The University has negotiated discounted corporate rate programs with major car rental companies which provide for significant savings over standard rates. These programs should be used whenever possible and practical. For a listing of rental agencies and current rates, consult Travel online at: 


Reimbursement Allowances

Individuals authorized to use a car rental service will be reimbursed for the cost of daily rental and gas. A receipt is required for reimbursement on a Travel Expense Voucher (Form UM 11).

Reimbursement for car rental insurance will be made under limited circumstances identified below.

University Travel Card Insurance

The car rental should be charged to a University Travel Card which provides $50,000 of Collision Damage Waiver/Limited Damage Waiver coverage. Use of the corporate card is encouraged since this shifts the initial burden of loss to the credit card company rather than the University's self-funded program.

Car Rental Insurance

There are three types of insurance that are typically offered by car rental companies: Personal Accident Insurance, Liability Insurance, and Collision Damage Waiver/Limited Damage Waiver. Under most circumstances, University employees and authorized guests are sufficiently covered by the University's self-funded program. Therefore, purchase of insurance from car rental companies is usually not recommended and will not be reimbursed by the University for U.S. and Canada rentals.

However, there are special circumstances which necessitate additional coverage. Employees and authorized guests should be aware of these exceptions and obtain the necessary and appropriate type of insurance which is identified below. Only in these cases, will the University reimburse employees and authorized guests for the expense of additional insurance.

Personal Accident Insurance (PAI)

Purchase of PAI is not necessary. There are no special circumstances which warrant its purchase, nor will it be reimbursed by the University.

PAI offered by car rental companies provides coverage to the renter for death or bodily injury caused by any accident occurring during the rental period. Passengers of the "insured" driver are also covered, but only for accidents occurring while occupying the rented vehicle. Employees killed or injured in an accident arising out of their employment have death and bodily injury coverage under the University's self-insured workers' compensation program.

 Liability Insurance

Liability coverage should only be purchased when:

  • The vehicle is to be driven outside the U.S. or Canada, or
  • The driver or renter is not a U.S. or Canadian resident.

Under either of these circumstances, the renter should purchase liability coverage offered by the rental agency. Limits purchased should not exceed $500,000 combined single limit for bodily injury and property damage. These expenses will be reimbursed by the University.

For all other rentals, University employees and guests renting a vehicle for authorized University business purposes are covered under the University's self-insured auto/general liability program. Therefore, with the exception of those rentals listed above, the additional liability coverage offered by the rental company is not necessary and will not be reimbursed by the University.

Collision Damage Waiver/Limited Damage Waiver (CDW or LDW)

CDW/LDW coverage should only be purchased when:

  • The vehicle is to be driven outside the U.S. or Canada, or
  • The driver or renter is not a U.S. or Canadian resident, or
  • The vehicle has a passenger capacity greater than eight (8), or
  • Trucks or other similar vehicles are rented for the primary purpose of transporting any type of cargo or property, or
  • Sports or utility vehicles are to be used off of maintained roads.

Under any of these circumstances, CDW/LDW coverage should be purchased (as offered by the rental agency) and the employee or authorized guest will be reimbursed by the University.

For all other rentals, CDW/LDW coverage is provided and additional coverage from car rental companies will not be reimbursed:

Reference: BPM 803 - Insured Coverages

Reporting Accidents and Injuries

If an accident or injury occurs with a rented vehicle, the UM Risk and Insurance Management is to be notified immediately by telephone (573-882-8100), regardless of the amount of damage. For detailed information on reporting requirements see BPM 706 - Accidents - Rented Vehicles.