Policy on Insurance for Rental Vehicles


University of North Carolina at Chapel Hill Policy on Insurance for Rental Vehicles

Reason for Policy

Insurance coverage for rental vehicles is provided by the University's automobile insurance which is part of a master policy issued to The State of North Carolina. We are required to comply with all state policies regarding insurance and rental vehicle use.

Policy Statement

Vehicles or other mobile equipment rented for official University business are automatically covered for both liability and physical damage insurance under our existing automobile insurance policy. The employee renting the vehicle or equipment does not need to make any special arrangements for insurance coverage, nor should they purchase insurance the rental agency may offer.


The University's insurance coverage for rental vehicles only applies while it is being used for official business. Our insurance coverage will not apply for the personal use of a rental vehicle.

Special Situations

The University's automobile insurance policy restricts rental vehicle coverage to just the United States, its territories, and Canada. Employees renting a vehicle outside of these areas should purchase the insurance offered by the rental agency. This travel related insurance expense is considered reimbursable.

Vehicles rented in excess of 30 days are not automatically covered under the University's automobile insurance policy unless we specifically report this situation to our insurance company.

Contact Risk Management Services if additional assistance is needed for either of these rental vehicle situations.

Related Requirements

External Regulations and Consequences

University Policies, Standards, and Procedures

Additional Information

Frequently Asked Questions

Q: Who can operate vehicles being rented for University business?
A: The state policy for operating rental vehicles is the same as for owned vehicles. Rental vehicles should only be operated by State employees while in the scope of University employment. (A State employee is defined as "any individual working for the state of North Carolina for wages or salary."). An exception is made for graduate and professional students provided they meet the definition of "State Employee" or they are enrolled in the University; their educational training requires the use of a State-owned vehicle; and their use of the State-owned vehicle is supervised and permitted by a University official.

Q: What insurance coverages are provided for rental vehicles?
A: Our insurance policy automatically provides liability, collision and comprehensive insurance for vehicles rented for official University business. The operator does not need to purchase any additional insurance beyond what is automatically provided.

Q: Are there any particular rental agencies we must use?
A: Campus departments must first utilize the services of our University Motor Pool for their rental needs. In the event a vehicle is not available, or the rental situation precludes the use of their vehicles, the state of North Carolina currently has rental contracts with Enterprise Rental Car and Triangle Rental Car. However, any other rental agency may be used when the other options are not available.


Contact Table
Insurance for Rental Vehicles Risk Management Services 919-962-6681   risk@unc.edu


June 12, 2009

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Article ID: 131843
Thu 4/8/21 9:18 PM
Fri 5/6/22 1:16 PM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Risk Management Services and Mission Continuity
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Associate Vice Chancellor for Campus Safety and Risk Management
Next Review
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06/27/2020 12:00 AM
Last Review
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06/28/2019 3:24 PM
Last Revised
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06/28/2019 3:24 PM
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06/28/2019 3:24 PM
Date on which the original version of this document was first made official.
08/01/2003 12:00 AM