Risk Management Services (RMS)
POLICY 2
Effective Date: 07/01/2003
Last Modified Date: 10/10/2003
Rental Vehicle Contracts
The State of North Carolina currently has rental vehicle contracts with Triangle Rent-a-Car and Enterprise Rent-a-Car. These companies provide us with discounted rates, extra benefits, and preferred service. When a rental vehicle other than a University Motor Pool vehicle is needed, use these companies if at all possible.
Contractor Local Customer Service Reservations Enterprise Rent-a-Car
Corporate account #53E5000Kevin Mueller
5715 Westpark Drive, Suite 200
Charlotte, N.C. 28217
(704) 414-62431-800-RENT-A-CAR
(800-736-8222)Triangle Rent-a-Car Karen Smith
4817 Hargrove Road
Raleigh, N.C. 27616
e-mail: ksmith@trianglerentacar.com
(919) 851-2556 x398Felice Johnson
toll-free 1-866-556-2765Vehicles rented for University business should be rented in the names of The State of North Carolina and The University of North Carolina at Chapel Hill. The individual who will be the principal operator of the vehicle must sign the contract, and the names of additional operators must also be included on the contract.
Liability Insurance for Rental Vehicles
Liability coverage pays for bodily injury or property damage for which you become legally responsible because of an at-fault auto accident in the insured vehicle. Laws in certain states allow rental agencies to be permissibly uninsured for liability coverage. Therefore, University travelers should always verify that the rental agency's liability insurance covers the rental vehicle.
If the rental agency is permissibly uninsured, the State's automobile liability coverage will then apply up to its limits. If the rental agency does provide liability coverage, the State's liability coverage will apply on a secondary basis. For in-state accidents, the State's combined bodily injury and property damage limit per person per accident is $500,000 and the maximum coverage per accident is $5,000,000. For out-of-state accidents, the per-person limit is increased to $1,000,000.
The State's automobile insurance does not provide coverage when a rental vehicle is operated for personal use on a business trip, nor does it extend to operators who are not State employees.
Collision and Comprehensive Insurance for Rental Cars
Collision and comprehensive coverage pays for physical damage the rental vehicle sustains, regardless of fault. Most rental contracts stipulate that the renter is responsible for any collision or comprehensive damage to the rented vehicle, even if someone else causes the damage. Rental agencies usually give renters the option of accepting a Collision Damage Waiver (CDW), for which renters pay an additional daily fee.
State policy does not allow reimbursement for this type of expense (except for certain rental situations in foreign countries). Rather, the State's automobile insurance provides comprehensive and collision coverage for commercial vehicles rented by employees for less than 30 days in conjunction with official University business. The limit of coverage is $25,000 per vehicle ($40,000 if the gross vehicle weight exceeds 10,000 lbs.) with no deductible for comprehensive or collision coverage.
This collision and comprehensive coverage is provided only in the United States, its possessions, and Canada. There is no coverage in other foreign countries. Because the State's coverage does not extend to most foreign countries, the State Budget Office does allow reimbursement on the cost of the CDW when employees are conducting official University business in countries not covered by the policy.
Summary
Rental Location Rental Time Period Coverage US, US territory, Canada Less than 30 days Comprehensive and collision insurance are automatically provided at no cost to the University department. Liability coverage up to the State's limits is provided on an excess basis. US, US territory, Canada 30 days or more Comprehensive and collision insurance is not provided unless requested. Requests should be made through Risk Management Services (call 962-7360). A premium may be charged for this coverage. Liability coverage up to the State's limits is provided on an excess basis. All other countries Any The University has no existing insurance policy in force. This includes liability coverage. If you want liability, collision, or comprehensive coverage, you must purchase it directly from the rental agency or from a local insurance agency. These expenses should be reimbursable. Procedures for Renting a Vehicle
To avoid any potential contractual or liability problems in the event of an accident, employees are encouraged to follow some simple procedures when renting a vehicle:
- When possible, select rental agencies authorized to do business for the University or the State of North Carolina.
- When completing and signing the rental contract, sign your name "[signature] in care of The State of North Carolina and UNC-Chapel Hill."
- Only authorized employee(s) who signed the contract should operate the rental vehicle. Non-permissive users may not be afforded insurance coverage.
- Review the rental contract carefully to address what insurance coverage is being provided by the rental agency.
- When possible, avoid paying for rental vehicles with a personal credit card. In the event of an accident, rental agencies may simply apply these charges to your credit card. The employee may be liable for any interest that accrues while the insurance claim is being adjusted.
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