Dept. Owned-Leased / Rental / Personal Vehicles / Fleet Services

Q: My department is interested in leasing or purchasing a departmental vehicle. If we do either, how is the vehicle insured and is there anything else needed?

A: There are two elements to insurance coverage for a licensed vehicle owned by UC. The first is Auto Liability, which is designed to provide coverage to the Regents (and employees) when a third party files a claim and alleges negligence. The second is Auto Physical Damage, which is designed to provide coverage in the event the vehicle itself is damaged, both coverages are automatic. Department's will be assessed an annual premium for both coverages. For more information, please refer to the Auto Physical Damage Program (BUS-69) and Auto Liability (BUS-75) insurance programs.

Q. Does the University insure rented vehicles used for business? Should a department purchase the collision damage waiver (CDW) or other optional insurance from the rental company?

A. The University maintains automobile rental agreements with various automobile rental companies for use by University faculty and staff on business-related travel. When using University agreements, liability and physical damage insurance on the rental automobiles is usually provided by the rental companies if:

1. A University rental agreement is used (see the list and details on agreements at the Purchasing website. Be sure to review the agreement to ensure the type of vehicle being rented is included in the agreement and for what coverage.
2. The driver has the University agreement number (each company has its own number) listed on their rental agreement by the rental company and identifies herself/himself as a University employee.
3. The automobile is used on University business.

If the rented vehicle is not provided insurance coverage under the University agreement, then the CDW and/or other optional insurance should be purchased from the rental company. If insurance coverage is not acquired and an accident occurs, the department will be responsible for any damages.

Q. Are vehicles on loan or leased covered by the insurance program?

A. If physical damage insurance or general liability insurance is required for vehicles, trailers, boats, or similar equipment on loan or leased to the University, it must be requested and purchased by the department. Contact Risk Management Services for further information.

Q. If I am driving my own vehicle on University business and it is damaged, am I insured under the University insurance program?

A. Your private insurance is the primary source of insurance coverage for your automobile, even when you are driving such vehicle on University business. If damages to 3rd party property exceed your limits, UC coverage is secondary to your own. If such accident occurs on University business you may be reimbursed up to $500 for you deductible or damages. Please see Adminstrative P&P manual 300-17.

Q. If our department rents a vehicle from Fleet Services and are involved in an accident, what action should we take?

A. Fleet Services provides an Automobile Accident Report form in all of their vehicles, which should be completed by the driver involved in the accident or a representative from the department. The form should be completed with as much information as possible and then submitted to Fleet Services. Direct contact should be made with Fleet Services to arrange for inspection and repairs on the vehicle. A department is responsible for the $500 deductible for each occurrence, unless there is third party responsibility and Risk Management Services is able to recover losses from such third party. This deductible is recharged directly to the department by Fleet Services. If a department does not report each incident and damages occur unreported from multiple incidents, the department will be held responsible for ALL damages.