Sports organizations occasionally rent vehicles for officers to travel out of state on business and for the transportation of participants. If a Non Owned And Hired Auto Liability policy is in existence, it will not respond to damage to the rented vehicle itself.
There are three options available for insuring damage to the rental vehicle:
1. Purchase Collision Damage Waiver from the rental car
company. This is the safest course of action to follow
as it will often pay for 100% of damages. The cost of
this coverage typically ranges from $15 to $30 a day.
2. Purchase Hired Car Physical Damage from the
insurance agent of the sports organization. Coverage
typically costs $250 per year. However, this policy will
not pay the following damages that are triggered by
many rental car contracts:
* The difference between Actual Cash Value and
Replacement Cost in the event the vehicle is
totaled.
* Loss of profits to the rental car company while the
vehicle is out of the fleet being repaired.
* Diminution in resale value
3. Rely on credit card benefits for physical damage. The
terms of credit card benefits vary greatly.
This is a complex area and consultation with an insurance professional is recommended prior to vehicle rental.
Source: John Sadler
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