Rental Vehicles

University Business:  State insurance covers losses arising from official University use of commercial rental vehicles.  State Risk Management advises NAU employees (renters) not to purchase the liability insurance coverage or collision damage waiver insurance offered by auto rental agencies (Arizona Administrative Code R2-10-107.A.1).

State Risk Management advises all State agencies not to allow non-State of Arizona employees to drive any state owned, rented, or leased vehicles on University business (i.e. independent contractors, individuals from another university outside of Arizona, spouses, employees of another agency, conference attendees, etc.).  State Risk Management does not cover these individuals for workers’ compensation or liability.

Rental Vehicle Vendors:  To rent a vehicle from an outside rental company, contact NAU Fleet Services Center, 523-2469.  Fleet Services Center can assist your department with rental requests.  The following vendors are on contract for use by the University:

  1. Budget Car Rental
  2. Enterprise Rent-A-Car:  All Enterprise vehicle rentals under this contract include a partial damage waiver for damages up to a minimum of $2,500.    

Volunteer Drivers: Volunteers are those persons doing University work under the direction and control of University officials and not paid by anyone for these activities.  ‘Registered’ volunteers, acting at the direction of University officials and within the course and scope of their State-authorized activities, have liability coverage through State Risk Management (Arizona Administrative Code R2-10-107B and “Who Is Covered”).  Registered volunteers (agents of the University) are provided the same liability protection afforded to University employees.  Thus, registered volunteers acting within the course and scope of their State-authorized activities have coverage for their liability exposure as agents of the State. 

To become a registered volunteer, the volunteer and his/her NAU supervisor must complete and submit a Volunteer Registration Form to Insurance and Claims Services (P. O. Box 4067) prior to any volunteer activity.  Forms are also available at Insurance and Claims Services department by contacting the Insurance Officer at 523-2009.  Refer to Volunteer Coverage section for more information on registered volunteers. 

Personal Use: The State does not cover losses associated with personal use of a rental vehicle.  This type of loss is the responsibility of the employee (renter) to pay.

Combined University Business and Personal Use:  University employees who combine University business and personal use of a rental vehicle should personally rent the vehicle and purchase the rental vehicle insurance at their own expense to avoid financial difficulties in the event of a loss.  The employee's department may reimburse the employee for that portion of the rental used for University business.

Transporting Family and Friends: If the University employee transports non-University passengers (e.g. family, friends, individuals not affiliated with NAU), the employee should personally rent the vehicle and purchase the rental vehicle insurance at their own expense to avoid financial difficulties in the event of a loss.

Van Training: If you are the authorized University driver of a 9 or 12-passenger rental van, you must be NAU van certified.  For more information on van training and certification, contact Frank Espinoza at (928) 523-5183 or Chris Johnson at (928) 523-2469.

Rental Card:  State Risk Management provides insurance for physical damage to vehicles rented for the purpose of State business.  Contact Insurance and Claims Services for a rental card, to provide to the rental agency as notification of coverage by the State of Arizona.

Inspect Rental Vehicle Prior to Leaving and When Returning Vehicle to Rental Agency:   Inspect the rental vehicle thoroughly for damages before you leave the rental lot.  Walk around the vehicle and do a complete inspection of the body, tires, windows, etc.  If damages are discovered (no matter how minor) report damages to the rental company and have the rental company record the identified damages on their paperwork.  Get a copy of the paperwork for your files.  The same is true when returning the vehicle to the rental agency.  Do a thorough check of the vehicle for damages.  If possible, have the rental agency personnel inspect the vehicle in your presence, and request they note "no damages" on their paperwork.

Purchasing Card Coverage of Damages:  When NAU cardholders charge their rental vehicle on their NAU Purchasing Card, they receive additional coverage that reimburses cardholders for the repair or replacement of a damaged or stolen rental car, up to the full value of the car.  For more information, refer to the Purchasing Card Training Manual.

Damages to Rental Vehicle:  In the event the rental vehicle receives damages while in your care and custody, do one of the following:

  • Accident involving another vehicle or criminal damage:   Contact the local law enforcement agency and file a police report.  Contact Insurance and Claims Services to report the damage and information on the accident (Law enforcement agency name, Police Report number, name of NAU driver, driver’s phone number, department, name of the rental agency, make/model of rental vehicle, specifics on accident, etc.).
  • All other accidents:  Fill out the on-line Damage Report and contact Insurance and Claims Services.  Indicate the name of the rental company, type of vehicle, license number, year, etc. on the Damage Report.  These situations do not include criminal type damage or collisions with another vehicle.  Examples would include backing into a pole, windshield damage due to road rock, body damage due to scraping tree branch, etc 

For more information on Rental Vehicles, contact the Insurance and Claims Services department at (928) 523-2009.