Hired and Non-Owned Auto Claims

Do you have coverage if your or your employees rent a car on company business?

John Doe rents a vehicle at RentalCarCo.  Rental is for one day at $159.99.  The vehicle is driven from rental location to one stop, parked and left all day.  John returns the rental vehicle to the rental car parking lot at the Air Terminal and departs.  The next day, RentalCarCo contacts John and says there is significant damage to the vehicle and he is responsible.  John had four people with him all the time the car was in his possession and it was not damaged while he had it.  He believes it got hit in the parking lot at the terminal after he dropped it off.

Damages from RentalCarCo are:

• $2,000.00  Repairs (20 hours labor included)
• $150 Administration Fee
• $799.95 Loss of Use
• $200 Diminished Value
• Total $3,149.95

What is your insurance carrier going to pay for damages on this vehicle?

RentalCarCo Contract states:

Damage to, Loss or Theft of, Vehicle, Optional Accessories and Related Costs. 
Renter accepts responsibility for damage to, loss or theft of, Vehicle, Optional  Accessories or any part or accessory regardless of fault or negligence of Renter or any other person or act of God.  Renter shall pay Owner the amount necessary to repair Vehicle or Optional Accessories.  Renter shall not have Vehicle or Optional Accessories repaired without permission from the Owner.  If Vehicle is stolen and not recovered or Owner determines Vehicle is salvage, Renter shall pay Owner the fair market value less any sale proceeds.  For purposes of this Agreement, fair market value shall be the retail value of Vehicle immediately preceding the loss.  If Optional Accessories are not returned Renter shall pay owner the replacement cost of the Optional Accessories.
 
Damages for which Renter is also responsible include but are not limited to: loss of use regardless of fleet utilization (if Owner determines Vehicle is repairable, loss of us shall be total labor hours from the repair estimate divided by 4, multiplied by the daily rate on Page 1.  If the vehicle is stolen and not recovered or Owner determines Vehicle is salvage, loss of use shall be 15 days), claim administrative fees ($50 if the repair estimate is less than $500, $100 if between $500 and $1499.99, and $150 if greater than $1500), diminishment of value (10% of the repair estimate if the damages are greater than$499.99), towing, storage or impound fees, and other costs incurred by Owner to recover Vehicle and to establish damages. 

If Vehicle is returned during non-business hours or to any place other than  Branch Address on Page 1, any damage to, loss or theft of, Vehicle or Optional Accessories occurring prior to an employee of Owner checking in Vehicle is Renter’s responsibility.

So, do you have coverage if you or your employees rent a car on company business?

YES

And

NO

What is your carrier going to pay for damages on this vehicle?

Exclusions or limitations in coverage could result in you owing $2,129.95 to the rental company ($1,000 ded and $1,129.95 in uncovered charges).