Rental Vehicle Insurance

The University of Alberta carries a non-owned automobile insurance policy that covers short-term vehicle rentals when the vehicle is rented by authorized drivers for approved university business. A short-term vehicle rental is defined as a vehicle rented for 30 days or less through an external rental agency

Rental Vehicle Insurance Options:

The following are various options for insuring your short-term vehicle rental, listed in order of most-preferred to least-preferred.

  • 1. Buy the Rental Agency's Insurance - PREFERRED

    The option that offers you and the university the most protection is to purchase the insurance for the rental vehicle directly from the rental agency, no matter which payment method you use. Insurance charges are additional fees under the rental agreement that are fully reimbursable under the Travel Expense Procedure.

    Insurance should include: third party liability, CDW (collision damage waiver) as well as LDW (Loss Damage Waiver). This will provide full insurance coverage for the rental vehicle against any third party liability claim (injury or damage you cause to other people or property) or direct damage you cause to the rental vehicle.

  • 2. Use University of Alberta Travel Credit Card Insurance
    Option 2 is to decline the rental agency insurance and use the University of Alberta Travel Diners credit card to pay for the rental. When permitted by the rental agency, collision and loss damage may be declined by you at the time of completing the rental agreement. In the event of a claim, the University’s Travel Diners Credit Card insurance should respond to collision/loss damage and the University of Alberta’s insurance program will respond to injury or damage you cause to another party while on university business.
  • 3. Use your Personal Credit Card Insurance

    Option 3 is to decline the rental agency insurance and use your personal credit card to pay for the rental, if you have rental car insurance coverage on your credit card. When permitted by a rental agency, collision and loss damage may be declined by you at the time of completing the rental agreement. In the event of a claim, your credit card MAY respond to collision/loss damage and the University of Alberta’s insurance program will respond to injury or damage you cause to another party while on university business.

    Please be aware that in a significant claim event that causes direct damage to the rental agency’s vehicle, the rental agency could charge your credit card the maximum value of the vehicle subject to your credit card limit available. Depending on the circumstances of a claim, your personal credit card limit could be maxed out for many months as a result, until the rental agency is reimbursed by your credit card company’s insurance.

  • 4. No Additional Insurance

    Option 4 is to decline the rental agency insurance even if your personal credit card does not provide insurance. When permitted by a rental agency, collision and loss damage may be declined by you at the time of completing the rental agreement. If your credit card does not provide insurance coverage for vehicle rentals, coverage will be available through the university’s insurance program, depending on the rental vehicle type (must be a private passenger vehicle; not more than $50,000 in value).

    All claims incurred must be reported online to Insurance & Risk Assessment. This will ensure that all claims are reported to the university’s insurer in a timely manner. 

    Please note that in a claim event, the rental agency could charge your personal card for the estimated damage to the vehicle. Depending on the severity of the damage, this could max out your personal credit card. It can take some time to process a claim as the university's adjuster reviews the details of the claim.

    Depending on fault, your department will also be assessed a deductible. The cost of the deductible will, in most cases, be more than the rental insurance coverage from the rental agency would cost in the first place.

    For these reasons, this option is not recommended

  • 5. Use Your Personal Vehicle Insurance for University of Alberta Business

    Option 5 is to use your personal vehicle for University of Alberta business. The University of Alberta does not insure personal property, regardless of whether a collision or loss is incurred while conducting university business.

    A limit of at least $2,000,000 liability insurance is required to be carried under your personal automobile insurance if you use your vehicle for business. Please contact your insurance agent/broker directly to disclose and discuss the use of your vehicle to avoid denial of a claim in an injury/collision situation. Any insurance costs arising from your personal automobile policy is already included as part of the mileage paid to you in accordance with the Travel Expense Procedure.


Terms & Conditions of Short-Term Vehicle Insurance

FOR APPROVED UNIVERSITY OF ALBERTA BUSINESS ONLY

Whenever possible, vehicles should be rented through national rental agencies such as Budget, Enterprise, National, and Thrifty. In order for the university's insurance to apply to short-term rentals, renters must adhere to the following guidelines:

  1. Drivers must be UAlberta authorized drivers and be legally permitted and qualified to operate a motor vehicle. Drivers must also comply with age requirements of the rental agency.
  2. The vehicle must be rented in the name of the University of Alberta and the authorized driver's name (i.e. John Smith and the University of Alberta should both be listed on the rental agreement).
  3. Rent only private passenger-type vehicles. This includes cars/sedans, private passenger minivans, and light trucks. (Subject to restrictions listed in Travel Expense Procedure Appendix A. Check for additional restrictions listed in your credit card agreement).
  4. Method of payment: use a UAlberta Travel Diners credit card or a personal credit card. Be sure to follow the Travel Expense Procedure when submitting expense claims.
  5. Credit card insurance (for collision and direct damage to rental vehicle): insurance coverage under each credit card will vary. It is important that you read your credit card agreement carefully and that you rent only vehicles that will qualify for the credit card's insurance coverage. Pay close attention to the type and value of vehicle that can be covered as well as the maximum rental period length allowed. If you rent a vehicle that is outside the value of what is covered by the credit card insurance, you could be responsible for the difference in case of a claim. Many card agreements will limit the value of the vehicle to $50,000. This could exclude medium size and luxury type vehicles from the credit card insurance coverage.
  6. All claims incurred on UAlberta business must be reported online to Insurance & Risk Assessment, even when insurance is being provided by a credit card. This will ensure that all claims are reported to the university’s insurer in a timely manner.
    • Any deductible charged by a rental agency and/or UAlberta Insurance & Risk Assessment will be the direct expense of the department.

Personal use: If renting a vehicle for personal use, please contact and discuss insurance directly with your personal insurance agent/broker. Claims incurred on personal time must be directed through your own insurance company.