Risk Management

Effective Date: 07/01/95

Policy Statement 5: Rental Vehicles

Rental Contracts

There are currently six rental vehicle companies on State Contract: Avis, Budget, Dollar, Hertz, National, and Thrifty. When a rental vehicle other than a University Motor Pool vehicle is warranted, these companies are to be used where available. While all of the contracts are basically alike, there are some variations in each. Therefore, it is recommended that users of rental vehicles ascertain that their proposed use will not void the rental contract agreements. If a proposed use is in question, arrangements are to be made with the Director of Materials Management to review the State's rental vehicle contracts. Rental vehicle discount cards are available through Materials Management for presentation at the time the vehicle is to be rented and picked up.

Rental Vehicle Contract

It is preferred that any vehicle rented from a rental agency for University business be rented in the names of the State of North Carolina and East Carolina University, and signed by the principal individual who will be operating the vehicle. If anyone else will operate the vehicle, their names are also to be included on the contract.

The accounts established with the vehicle rental agencies are in the University's name, which appears on the cards available on loan from Materials Management. Employees renting vehicles for University business should be sure to show ECU as their business affiliation on any rental forms as well, to be certain that all applicable insurance coverage will apply in the event of an accident. The State/University rental vehicle liability and physical damage insurance coverage does not extend to operators who are not State employees on State/University business.

Specifically, the University has procured comprehensive and collision insurance covering all commercial vehicles rented for a period of less than 30 days by employees conducting official University business. This coverage is underwritten by the Traveler's Insurance Company, with limits of $3,000 for vehicles rented from Avis, Hertz, and Thrifty, cash value on all others with a $25,000 maximum, with no annual aggregate and no deductible for comprehensive or collision coverage. Coverage is provided in the United States, its possessions, and Canada. There is no coverage in foreign countries other than Canada. (Please note: These are general statements regarding insurance coverage, and some of the provisions may differ somewhat with the individual rental companies. Consult the ECU Insurance and Risk Management Guide for additional information.)

Each user of a rental vehicle has the responsibility of making certain a Travel Authorization, including a request for use of a rental vehicle, has been filed and approved prior to use of such a vehicle, and that his/her name is on record with the rental company as an operator.

Signing of Right to Recovery Waiver

Any State agency which authorizes an employee to rent a car is responsible for paying any damages in an accident resulting in the rental agency exercising its right to recovery. If a right to recovery claim is presented, it will be submitted to our insurance carrier for non-owned and hired coverage consideration or to the Attorney General's office for tort claim ruling. If the insurance agency accepts and agrees to pay the claim, the department to which the State employee is assigned will be charged for any applicable deductible. If the department does not have the funds necessary to meet the applicable deductible, or pay the approved tort claim amount, the department will then make a request for assistance from the ECU administration. Payment to enact a right to recovery waiver is strictly prohibited. Any individual paying a waiver premium does so at his/her own expense, as the expense is not reimbursable through the University. This applies to all State-managed funds, including grant, contract and trust funds.

Because the Traveler's coverage does not extend to most foreign countries, reimbursement is allowed on the cost of the collision damage waiver when employees are conducting official University business in the foreign countries not covered by our policy. In the United States, its possessions, and Canada, the collision damage waiver should not be signed or accepted; we are already covered by our existing policy.

If an accident occurs when driving a rental car, report the accident to the appropriate law enforcement agency and rental car company. Any questions regarding rental car usage should be directed to Materials Management.