The University of Toledo

When traveling on company business, and renting a car, is there a need to purchase the Loss Damage Waiver (LDW) insurance?

The University has hired car physical damage coverage but it has a $1,000 deductible. It is best to select the insurance coverage from the rental agency.   Without the rental agency insurance, the $1,000 deductible on any damage to the vehicle would be paid by the renting department.

The employee's personal insurance would be primary for both liability and physical damage. The University would provide excess liability (after the employee's insurance pays first) under its non-owned auto liability coverage; but, not for physical damage.

If a University employee rents a vehicle for University business and allows someone else to drive, and the other individual driving has an accident, what insurance would respond?

Automobile rental contracts can be very specific about driver responsibility. Many will require that every individual driving the vehicle be listed and some exclude individuals under age 21 from operating a vehicle. Depending on the contract language and the circumstances, a University employee might be in violation of policy, thus voiding the contract. In this case, the University employee could be held personally liable if the University's insurance denied coverage.  Rental agencies generally carry liability insurance at state required minimum levels and this could respond first.