Rented Automobile Coverage
The State of Utah periodically contracts with certain car rental agencies to provide cars at rates that include liability coverage for damage to rented vehicles as well as damages and injuries of third parties.
These negotiated coverages are not in force unless the Contract Number is identified and the pre-negotiated rates are paid. Payment of discount or special rates nullifies the insurance coverage contract.
To assure that this coverage is in effect, the applicable state contract numbers must be identified to the rental agency at the time the rental agreement is initiated and the negotiated contract rates must be applied. Payment of any daily rate other than the negotiated contract rate nullifies the liability coverage.
There is a $10,000 deductible in liability coverage for use of any non-contracted rental agency's vehicle unless it can be verified that a reasonable attempt was made to use the state contracts but no automobile was available either:
- at the time; or
- at the place, or
- of the type needed.
Under these conditions, the rental vehicle will be covered by the State Risk Management policy with a $500 deductible for damage to the rental vehicle. If these conditions are not met, but use of a non-contracted agency vehicle is still desirable, the liability and damage insurance offered by such agency should be procured.