Dr. Clayton Mote, Jr., President
University of Md at College Park
College Park, Maryland 20742

RE: Rental Car Coverage

Dear Dr. Mote:

Maryland State officials and employees occasionally rent vehicles to use while on State business. The customer's financial responsibility for loss or damage to the rental vehicle varies by state. Generally, the customer is responsible for loss or damage to the vehicle, up to its full value, regardless of who is at fault, due to collision, rollover and, in many instances, a limited number of additional causes as specified in the rental agreement. Certain causes of loss may exclude the customer from responsibility. These exclusions often include acts of nature and accidental fire.

Rental companies offer an option available for an additional daily charge which, when purchased, waives or reduces the customer's responsibility for loss or damage to the rental vehicle, provided the vehicle is used in accordance with all terms and conditions of the rental agreement. These options may include Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). These options are not additional insurance coverage for the customer.

The State has elected to provide this coverage. The renter should not purchase CDW or LDW. Vehicles rented to the State are covered for liability under the Maryland Tort Claims Act. As with all claims, each State agency will be responsible for the first $1,000 of damages.

If damage occurs to a rental vehicle, the customer should report the incident to their Agency Insurance Coordinator. The Agency Insurance Coordinator should file an ACORD accident report with the Insurance Division immediately and should also refer the rental company to the Insurance Division.

Please note, when signing the rental agreement, the renter must include their name, the State Agency and the State of Maryland.

Sincerely,

Thomas C. Kelley, Jr.
Director
Insurance Division