University of Minnesota  Procedure

Renting or Leasing a Vehicle for University Business


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Please use the contact section in the governing policy.

Renting or Leasing a University-Owned Vehicle

When renting or leasing a vehicle, the traveler or departmental representative:

  1. Determines whether the trip is related to University business and has departmental approval.
  2. Contacts appropriate campus office (see Contacts section in the policy).
  3. Provides required information.
  4. Any moving violations received through camera based ticketing systems will be charged the ticket and administrative fees to the driver, and if not identifiable, the department renting the vehicle.

Fueling University Vehicles

The University of Minnesota is exempt from federal fuel taxes. To take advantage of this exemption, University vehicles should be fueled at the campus fueling locations whenever possible. While away from campus, drivers should use a Fleet Services-issued fuel credit card. Use of the University fuel pumps and the fuel credit card are the only two means by which the University receives an exemption from federal fuel taxes.

When fueling a vehicle with the fuel credit card, the driver selects a self-service pump and the lowest octane fuel recommended by the manufacturer.

Refer to the Fleet Services website for more information on how to fuel a University Vehicle.

Mobile Device Use

Drivers are prohibited from handheld use of mobile devices in a rental or leased vehicle, as outlined in Administrative Policy: Using Vehicles for University Business.

Renting or Leasing Passenger Vans

Renting or leasing 12- and 15- passenger vans, including from an outside supplier, is prohibited.

Renting or Leasing a non-University Owned Vehicle

Fleet Services is the University's preferred vehicle rental/lease provider. Rental from suppliers who do not have a contract with the University is strongly discouraged. Using outside suppliers increases the initial cost, and may expose the department and the University to a large monetary loss in the event of an accident. Contracts negotiated by the University include lower rates, full insurance coverage, and lower insurance deductibles.

Departments may also rent vehicles through contracted suppliers. Details on the suppliers, how to make reservations and benefits of these contracts are included in the University-Wide Agreements.

Should it become necessary to rent (less than three months) or lease a vehicle from outside the University, the employee or department contracting for the vehicle first verifies insurance protection on the vehicle from the supplier.

  • Insurance coverage is not provided by the University insurance policy.
  • A certificate of insurance from the rental or leasing firm is required. That certificate requires the following:
    • A statement that the insurance on the rented or leased vehicle conforms with Minnesota "no fault" state law.
    • On leased vehicles, it should name the Regents of the University as an additional named insured to that firm's automobile liability insurance policy.

Rentals from non-University-contracted suppliers require fees for additional insurance coverage. The University also pays the tax on rental vehicles. Collision Damage Waiver (CDW) should be purchased and is a reimbursable travel expense. If an accident occurs and CDW was not purchased, the deductible for collision expense is $10,000.

The University further requires the leasing or rental firm to provide a minimum limit of liability insurance coverage. These limits of liability are to be stated on the certificate of insurance:

  • Minimum Insurance for Leased Vehicles
    Bodily Injury/Property Damage: $1,000,000 combined Single Limit - Each Occurrence