Overview
Santa Clara University has liability insurance on all autos, whether they are owned by the University, rented, leased, private vehicles driven by their owners on University business, or borrowed vehicles. University-owned or leased vehicles are self-insured for physical damage. If you are driving a University-owned vehicle, with the permission of the University, then you are an insured driver under the University’s policy. Authorized drivers are approved employees or students, authorized fleet drivers, and authorized volunteers. Coverage is not extended to unauthorized drivers, including unauthorized use of a vehicle.
Auto Rentals
Automobile rental is generally an expensive form of transportation. Other means of transportation should always be considered first. When necessary, cars rented for University travel should be in the most economical price bracket offered by the auto rental agency. To reduce fuel costs, travelers are encouraged to choose mid-size or compact cars whenever possible. Never rent a vehicle valued in excess of $30,000.
University Risk Management guidelines strictly prohibit the rental of 15-passenger vans.
Insurance Requirements
The University purchases Hired Car Coverage for both liability and collision as part of its Auto Insurance Policy. This coverage applies to all students, faculty, staff, and volunteers renting vehicles for University-related activities.
It is important that all individuals renting vehicles for University business follow the protocols below:
- U.S. Rentals: For Students, Faculty, and Staff, you must decline the liability and collision insurance offered by the car rental agency when renting vehicles in the United States, as the University’s Hired Car Coverage provides this protection.
- Non-U.S. or Canadian Rentals: For Faculty and Staff renting vehicles outside the United States or Canada, you must accept the applicable liability, comprehensive, and collision insurance provided by the rental company, as the University’s policy does not extend to rentals in these regions.
Vehicle Inspection
Before driving a rented vehicle, it is important to inspect it and note any existing damage (e.g., dents, scratches) on the rental form. The same procedure should be followed when returning the vehicle. Otherwise, your department or the University may be held responsible for damages you did not cause.
We also recommend checking lights, turn signals, flashers, and wipers as a safety measure before taking the vehicle.
Rental Guidelines for Student Drivers
Students may rent vehicles for University-related activities, as long as they follow the protocols outlined above. Liability and collision insurance for these rentals is covered by the University’s Auto Insurance Policy.
Renting and Driving Abroad
Students are not permitted to drive rental vehicles abroad, even if they are credentialed to drive for the University. However, faculty and staff may rent vehicles abroad, but they must purchase insurance from the rental car company directly in the maximum amounts offered for both liability and physical damage. The University carries excess coverage over the amounts purchased locally.
Deductibles/Denials
Departments will be charged up to $1,000 for payment of amounts not covered because of deductibles in "at-fault" or surchargeable accidents.
Certificates of Insurance
Rental companies may require a certificate of insurance showing the University’s auto insurance limits. This certificate is located here
Use of a Personal Car
If you drive your own car on University business, your insurance policy serves as a "primary" policy for third-party liability and collision/comprehensive damage to your vehicle. The University’s insurance is “excess” of your insurance for liability only. This means that the University’s insurance will cover liability claims arising from the accident only after your insurance runs out. (For example, if you carry only $20,000/$40,000 liability insurance, and cause a $100,000 loss to an individual, your policy would pay the first $20,000 of the claim, and the University policy would pay the remaining $80,000.)
The University will not pay any claims to personal autos for comprehensive or collision damage. The University's uninsured/underinsured collision and comprehensive coverage does not extend to non-owned vehicles. We recommend that you consult with your insurance agent or broker for this type of coverage.
Use of a Borrowed Car
In general, vehicles should NOT be borrowed for use on University business. If special circumstances (e.g., an emergency) arise, that compel an otherwise authorized driver to borrow a vehicle, it is recommended that the driver obtain authorization for its use from a supervisor or department head. The University has liability, comprehensive, and collision coverage for borrowed vehicles. However, a vehicle “borrowed” from a family member will be considered a Personal Vehicle and will only be covered as a personal car.