January 3, 2002
DEANS, DIRECTORS, DEPARTMENT CHAIRS AND ADMINISTRATIVE OFFICERS
RE: Insurance Considerations
for the Use of Rental and Employee- Owned Vehicles on University Business
Use of rental or employee-owned vehicles on University business involves some important insurance considerations of which University business travelers should be aware. The following is a brief summary of the insurance coverage available to University travelers while using non-University owned vehicles for business.
Departments
should use the Fleet Services daily rental program, or the Fleet Services'
rental car contract(s), to rent vehicles for local University business travel.
Rental arrangements made directly through Fleet Services are assured coverage
for physical damage to the rental car and for liability for property damage or
injuries to third parties arising out of operation of the rental vehicles by
University authorized drivers. In contrast, rental arrangements made directly
with private rental car companies by a Department department may not include insurance coverage
otherwise provided to the University. Thus the University traveler and his or
her department may be exposed to financial loss.
Rental car arrangements for out-of-area business trips should be made through the UCLA Travel Center. Car rentals secured through Travel Services include all University required insurance. If departments make rental arrangements directly, it is important to use a rental car company that has an agreement with the University (see list below). As University rental car agreements may change, departments should consult the Travel web-site at ( www.travel.ucla.edu) or the OIRM web-site at (www.ucla.oirm) for details on the most recent University rental contracts.
If a department makes rental reservations directly using the University contracts, the department should notify the rental car company at the time the reservation is made that the rental is for UCLA business and should cite the Corporate ID number. That way, all University required insurance will be included in the rental. Unless arrangements are made through UCLA Travel or by using the University contracts listed below, the University traveler may be personally responsible for damage to the rental car. Further, the traveler's personal auto liability insurance may be required to respond to claims for injuries to third parties and/or damage to the vehicles. Please note that the rental of types of vehicles not covered by the University's contracts, or at rates other than the contract rates, may result in loss of the insurance coverage provided, exposing the University traveler and his or her department to financial loss.
Use of Personal
Vehicles for Business
Employees using personal vehicles for University business should be advised that their own auto liability insurance will be called upon to provide primary coverage for injuries or property damage to third parties resulting from any accident while on University business. The University’s Automobile Liability Self -Insurance Program will provide excess coverage. The employee’s collision coverage, if any, must pay for any damage to the employee's own car. However, the employee's department may reimburse an employee the amount of the employee's physical damage deductible, up to $500 or the amount of actual repair (whichever is less), as a travel expense. The University recommends that all employees using personal vehicles for business carry auto liability insurance with minimal limits for property damage of $50,000 and for bodily injury of $50,000 per person and $100,000 per accident.
Use of Credit Cards When Renting Vehicles
Some gold and platinum MasterCard and Visa credit cards, including the University's corporate credit card, provide limited coverage for damage to rental vehicles and/or liability for bodily injury and property damage arising out of rental car use, provided the rental is charged on the card. Insurance coverage provided by credit cards is frequently in excess of auto insurance the traveler may have from other sources. Although coverage available from credit cards may be helpful in increasing insurance limits, such coverage should not be relied upon for protection for the traveler.
If
you would like any additional information about this matter, please contact
Cynthia Roberts, General Liability and Vehicle Coordinator at the Office of
Insurance and Risk Management, X 46956 or Rebecca Beatty, Director Business
& Administrative Services at UCLA Travel, X 48688 or consult the OIRM
web-site at (www.ucla.oirm) or
the Travel web-site at (www.travel.ucla.edu.)
Sincerely,
Richard
Johnson Rebecca
Beatty
Associate
Director Director,
Business & Administrative Services
Insurance
& Risk Management Corporate
Financial Services
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