Insurance Coverages for Leased/Rental Vehicles
The University has liability insurance protection to cover damages caused by, or in some cases to, leased vehicles used for official University business. This liability protection is provided to University employees or authorized agents (e.g. students, volunteers) through the Commonwealth of Virginia's Division of Risk Management for third party damages other than to leased vehicles. Damage to leased vehicles will be covered through a combination of self-insurance and a contracted vendor's Collision Damage Waiver. The department having responsibility for the vehicle must pay the first $1,000 of loss for each claim under the University's self-insurance program. Use of a credit card providing coverage for damages to rental vehicles, such as the University Travel and Expense card, when used to book and pay for vehicle rentals is a potential source of coverage for rental vehicle damage including the $1,000 departmental deductible. However, use of a credit card to pay for damage to a rental vehicle will jeopardize coverage through the University's Insurance Program. When employees lease vehicles in a foreign country (excluding Canada), we strongly recommend the purchase of liability and physical damage coverage from the leasing agency.
Vehicles leased for 30 days or less are covered up to $2 million per claim in excess of the leased vehicle's primary insurance. If there is no primary insurance, the State's program provides primary coverage when a leased vehicle is involved in an accident due to employee negligence.
When accepting, and also upon returning the vehicle it is strongly recommended that renters inspect the vehicle and note any damages in the agreement documents in order to avoid being held responsible for pre-existing damages. The rental agreement documents should be given to your department and retained in the event Property & Liability Risk Management may need them to manage a claim related to the rental vehicle.
In order to preclude your department's claim from being denied for reimbursement by the State adhering to the following guidelines is strongly recommended:
- If involved in an accident in a rental vehicle immediately contact the police and your supervisor. If the police deem it not necessary to take a report, you should get their name, badge number, and phone number.
- Notify the leasing agency of the accident.
- Complete an Automobile Loss Notice. The completed Auto Loss Notice may be faxed to Property & Liability Risk Management at (434) 982-2635. The completed Auto Loss Notice should be submitted to Property & Liability Risk Management within 48 hours. If you will not be able to submit the Auto Loss Notice to Property & Liability Risk Management within the 48 hours, please call Property & Liability Risk Management at (434) 924-3055.
- If at all possible do NOT return a vehicle to the rental agency after hours.