Renting or Leasing a Vehicle for University Business
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Renting or Leasing a University-Owned Vehicle
When renting a vehicle, the traveler or departmental representative:
- Determines the trip is related to University business and has departmental approval
- Contacts appropriate campus office (see Contacts section in the policy).
- Provides the following information:
- drivers name
- department requesting rental
- financial account string, account 720601
- name of person authorizing rental and phone
- contact person and phone
- date and time of pickup
- date and time of return
Fueling University Vehicles
The University of Minnesota is exempt from federal fuel taxes. To take advantage of this lower fuel cost, University vehicles should be fueled at the campus fueling locations whenever possible. While away from campus, drivers should use a Fleet-issued fuel credit card. Use of the University fuel pumps and the fuel credit card are the only two means by which the University receives an exemption from federal fuel taxes.
When fueling a vehicle with the fuel credit card, the driver must select a self-service pump and the lowest octane fuel recommended by the manufacturer.
Renting or Leasing 12 and 15 Passenger Vans
Departments renting or leasing vehicles to transport 12 or more persons are prohibited from the use of 12- and 15-passenger vans. Read the October 2010 announcement on the phase out of these vehicles from the University Fleet. For the health and welfare of University community members, Fleet Services recommends renting/leasing the appropriate number of 7-passenger vans or contracting with a professional transit service.
Renting or Leasing Through Contracted Vendors
Departments may also rent vehicles through contracted vendors. Details on the vendors, how to make reservations and benefits of these contracts are included in the University-Wide Contracts.
Renting or Leasing a non-University Owned Vehicle
Rentals from non-University contracted vendors are discouraged and may expose the department and the University to a large monetary loss in the event of an accident. Contracts negotiated by the University include lower rates, full insurance coverage and lower insurance deductibles.
Should it become necessary to rent (less than three months) or lease (three months or more) a vehicle from outside the University, the employee or department contracting for the vehicle must first verify insurance protection on the vehicle from the vendor.
- Insurance coverage will not be provided by the University insurance policy.
- The verification must be in the form of a certificate of insurance from the rental or leasing firm.
- This certificate should state that the insurance on the rented or leased vehicle conforms with Minnesota "no fault" state law.
- On leased vehicles, the certificate of insurance should name the Regents of the University as an additional named insured to that firm's automobile liability insurance policy.
Rentals from non University-contracted vendors require fees for additional insurance coverage. The University must also pay the tax on rental vehicles. Collision Damage Waiver (CDW) should be purchased and is a reimbursable travel expense. If an accident occurs and CDW was not purchased, the deductible for collision expense is $10,000.
The University further requires the leasing or rental firm to provide a minimum limit of liability insurance coverage. These limits of liability must be stated on the certificate of insurance:
Minimum Insurance for Leased Vehicles
Bodily Injury/Property Damage: $1,000,000 combined Single Limit - Each Occurrence