RM-11 Rev. 2 Rental Vehicles and Purchase of Rental InsuranceCITY OF DELRAY BEACH
ADMINISTRATIVE POLICIES AND PROCEDURES
DEPARTMENT:
SUBJECT:
REVISION:
APPROVED BY:
PURPOSE
Risk Management
Rental Vehicles and
Purchase of Rental
Insurance
POLICY NUMBER:RM-11
SUPERSEDES:RM-11,Rev.1
EFFECTIVE DATE:Jo 'e/oz/
Terrence R.Moore,ICMA-CM,City Manager
The purpose of this policy is to instruct employees regarding the purchase of rental vehicle insurance when
they are required to rent a vehicle while on City authorized business.
DEFINITIONS
1.Rental Vehicle:Under this policy,a vehicle which is rented for a short period of time,typically for
overnight business travel such as might be used for attending a conference or seminar.NOTE:
Vehicles rented and used locally (e.g.,vehicles hired to replace a City vehicle which is in for repairs;
used for police purposes),or hired for long term use (e.g.,lease agreements),will be handled on a
case-by-case basis but typically will be covered under the City's insurance programs (e.g.,auto liability,
auto physical damage).As required in such instances,Risk Management will provide the employee
with copy of a Certification of Insurance evidencing required insurance coverage.
2.Authorized Rental Car Driver:Person(s)permitted to drive the rental vehicle as stated in the rental
contract.Under this policy,it would include the employee only.The employee must possess a valid
Florida driver's license and comply with Policy RM-9.
3.Loss Damage Waiver,or LOW (formerly known as Collision Damage Waiver,or CDW):This coverage,
if purchased,protects against damage to,or theft of the rental vehicle.In effect,the rental company
"waives"the renter's related liabilities for damages to the rented vehicle.
4.Auto Liability Insurance (typically known as supplemental Liability Insurance,or SLI):This insurance,
if purchased,protects against legal liabilities,actual or alleged,incurred as a result of authorized
operation of the vehicle.Legal liabilities would include injury to another person,or damage to another
person's vehicle or personal property.
5.Personal Accident and Personal Effects Insurance:This is insurance which protects the occupants of
the rental vehicle against injury costs and protects against loss/damage to your personal items kept in
the rental vehicle.
Rental Vehicles and Purchase of Rental Insurance
RM-11,Rev.2
Page 2 of 2
POLICY
A.Business Use,Vehicle Rental Insurance Requirements
1.When a vehicle is rented in the State of Florida,auto liability insurance shall not be purchased and
will not be reimbursed by the City.
2.When a vehicle is rented in a state other than Florida,auto liability insurance shall be purchased,
and will be reimbursed by the City.It is noted that some rental contracts may,as might be required
under a state's law,provide "basic"auto liability insurance at no charge.
3.Whether a vehicle is rented in the state of Florida or any other state,the loss (collision)damage
waiver shall NOT be purchased and will NOT be reimbursed by the City.
4.Personal accident/personal effects insurance will NOT be reimbursed by the City.
5.If you are involved in ANY type of accident with the rental vehicle while on City business,you shall
contact the local police authority and report the accident.You shall also report the accident to the
rental company as required by the rental contract,and as soon as practical to your supervisor.
Personal Use of Rental Vehicle
1.If family members will accompany you on the business trip,you shall advise and discuss the
situation with your supervisor beforehand.
2.If you are to extend your stay for personal reasons after the business trip period,you shall have the
rental car company reissue the rental contract so that you,and not the City,shall assume the related
costs and liabilities,including rental insurance coverage.