Please click here to see the Guidelines for Renting or Leasing vehicles and Driver Safety Tips.
When renting a vehicle two types of insurance coverage categories must be considered, 1) Third Party Liability Insurance and 2) Theft and Physical Damage Coverage (Collision and Comprehensive). The Third Party Liability provides coverage for amount that the law holds the driver or other persons responsible for bodily injury, death or losses other suffer in an automobile accident when you or other insured persons are at fault. This insurance, legal minimum of $200,000, is required by Ontario Law and includes the following coverage:
- "Liability" protects the lessee/driver if someone is killed or injured or their property is damaged. It covers for legitimate claims against you and up to the limit of your coverage and pays the costs of settling the claims.
- "Accident Benefits" provides benefits if the lessee/driver is injured in an auto accident, regardless of who caused the accident. These benefits include,
- Supplementary medical care, rehabilitation and attendant care.
- A tax-free income benefit for wage earners or self-employed.
- An allowance to those who have no income from employment.
- Funeral expenses and death benefits when a person dies in an accident.
- "Uninsured Automobile" protects the lessee/driver injured or killed by an uninsured motorist or by a hit-and-run driver. Covers damage to you vehicle caused by an identified uninsured motorist.
- "Direct Compension" under certain conditions, covers the lessee/driver in Ontario for damage to the vehicle and to property it is carrying when another motorist is responsible.
Physical Damage Coverage, although considered optional by law, is required by the University of Toronto for all rentals made by its employees. This coverage protects the lessee against loss of or damage to the automobile caused by collision, fire, theft and a variety of other unpredictable risks.
It is the rental agency’s legal responsibility to provide third party liability coverage for short-term rentals. This coverage should be included in the basic rental contract. All renters must confirm that this provision is made in the rental contract before signing.
Budget provides $1,000,000 coverage for the person renting the vehicle. They do not offer the option to purchase additional liability coverage.
Car Rental Theft and Damage Insurance can be purchased at an extra cost from the rental agency. The coverage is called "Collision Damage Waiver" (CDW) or "Loss Damage Waiver" (LDW). Although this coverage is considered optional, the University of Toronto requires that all employees renting vehicles for University business purchase this insurance coverage.
Budget offers Loss Damage Waiver insurance for $12/day with zero ($0) deductible on regular cars, compact, midsize, full size vehicles and 7-passenger minivans, and $19.95/day with a $25 deductible for the cargo vans and 11-12 passenger minibus. All U of T Scarborough customer accounts will be flagged to remind all renters that they must purchase the Loss Damage Waiver insurance. Vehicles will not be rented otherwise.
Personal Accident Insurance is also available from Budget for $5.95/day and provides additional medical coverage for the renters and passengers within the vehicle injured in an accident. This is optional insurance and is not mandated (but desired) by the University of Toronto.
Both the Liability and Physical Damage (Collision) coverage is provided under the University of Toronto’s Blanket Vehicle Fleet policy when a rental is more than 30 consecutive days. The University's policy will cover all types of vehicles as long as all Ministry of Transportation requirements are met, specifically license requirements (e.g. ’F’ license for minibus).
Coverage is arranged with the Risk Management & Insurance Department through U of T Scarborough Parking Services at the time of each long-term rental. The vehicle will be added as a temporary addition to the University of Toronto auto fleet. The lessee should not drive the vehicle until provided with an Ontario Auto Policy Slip. See Quick Reference van rental instructions for further information.
Premiums:All premiums for coverage through Risk Management & Insurance are calculated on a per vehicle, pro-rate basis and charged back to the user or sponsoring University department. The rates quoted for the period of July 1/05 to June 30/06 are:
| Class of Vehicle | Daily Premium |
|---|---|
| Passenger Van (<10 seats) | $ 6.00 |
| Passenger Van (10-15 seats) | $ 7.00 |
| Light Commercial | $ 5.00 |
The University of Toronto has negotiated a "no age" restriction on its insurance coverage. The Risk Management & Insurance advises careful screening of drivers. Driver selection is the first critical link in helping to protect the University from loss exposures, based on the fact that 95% of all vehicle accidents are caused by human error. It is a Manager’s responsibility to ensure the driver selection or screening is completed.
This includes obtaining proof of a valid driver’s license and checking driver abstracts a minimum of once per year, if possible. In instances where a driver(s) will be used on a frequent basis throughout the year a driver abstract is required. A driver abstract is a 3-year statement of the driving record and contains driver identification, license status information, including a list of Highway Traffic Act and Criminal Code convictions within the previous 3 years, the conviction dates and any points accumulated.
This product is available immediately at any Driver and Vehicle License Offices and Kiosks. Since the driver abstract contains private information, only the driver can request the abstract from the Ministry of Transportation. This product is also available online at the Ministry of Transportation.
Driver, Passenger and Vehicle Safety – guidelines to ensure safe vehicle operation
The following are provided by the University’s insurance advisors and are based on industry best practices and proven loss prevention strategies. Each Department should maintain an approved list of all employees and student drivers who are allowed to operate a University owned, leased or rented vehicle on University business using these guidelines. It should be understood that University driving privileges may be suspended or revoked because of at fault accident or violation, falsification of records or any repeated failure to comply with these guidelines.
Recommended Driver Selection
This is the first critical step towards ensuring that the risk of a motor vehicle accident is minimized. It has been said that 95% of all vehicle accidents are caused by human error.
- International driving permits are discouraged due to their variable application standards. Exceptions can be made when the international driving standard is known to be on par with Ontario standards.
- Drivers must have a valid driver’s license for the operation of the class of assigned vehicle.
- Drivers 19 years of age or older are allowed to drive vehicles. We recommend a minimum 22 years of age for high occupancy passenger vehicles or situations involving higher risk where more experience and mature judgment is indicated.
- We suggest obtaining driver abstracts at least annually for students and casual drivers and to make the reporting of all driver violations a condition of vehicle use.
Suggested Maintenance of Driver Records and Training
- We suggest that all departments maintain complete driver record files.
- Identify positions that require the use of a vehicle, with the type of vehicles driven including frequency, duration and geographic area of operation.
- A file should be created for all drivers with the following: application form, photocopy of driver licence that confirms that the driver is licensed to operate the assigned vehicle, reference check, abstract (Motor Vehicle Records), road test (where applicable), declaration of violations; accident history, training record, disciplinary history.
- The University wants to make sure that employees/students are adequately prepared to carry out their job responsibilities safely when required to operate a vehicle. This may include pre-employment orientation and training in areas such as defensive driving skills and, for new hires, we would also suggest mandatory testing. In order to maintain required skill levels, drivers may also need periodic updates and re-testing.
Vehicle Selection
We suggest that you carefully consider your needs when leasing a vehicle. This will depend on many factors including – type of a vehicle depending of volumes, amounts transported; with good safety record, easy maintenance.
We recommend that current year models not be used for field work when off road or driving on unpaved or gravel surface roads is required.
The lessee must be aware of all exclusions, which are those activities that would make the insurance void. For insurance obtained from the rental company the exclusions will be included in the rental contract and would typically include: vehicles used for off-roading or in a criminal act, driving while intoxicated, operation by an unauthorized driver, used to tow or push anything or in an wantonly negligent manner, etc.
For long-term rentals where insurance is obtained from U of T, the following is a list of who and what the auto policy will not cover:
- Excluded drivers and driving without permission.
- Rented or leased vehicle that have not been added to the insurance schedule.
- Garage workers - if losses occur while in a repair garage (it carries its own liability coverage).
- Losses due to war activities.
- Driver under the influence of intoxicating substances.
- Driver charged with impaired driving as a result of an accident.
- Driver convicted of offenses under the Criminal Code of Canada relating to the operation, care or control of the automobile, or committed by means of an automobile, or any similar offense under any law in Canada or the USA.
- If the driver uses or permits the automobile to be used in a race or speed test, or for illegal activity.
- The driver drives or operates the automobile while not authorized by law or has an invalid license.
- Another person, with lessee’s permission, driving or operates the automobile under any of the above mentioned conditions.