Renting a vehicle for a church trip or event may seem straightforward, but the decisions made during the reservation and pickup process can affect both the church’s insurance protection and its financial responsibility.
Before accepting the vehicle, review the church’s insurance policy, the rental agreement, and the rental company’s optional protection products.
Review the Rental Company’s Damage Waiver
When renting a car or van, the rental company may offer an optional Collision Damage Waiver or Loss Damage Waiver. Although it is sometimes described as rental-car insurance, a damage waiver is generally a contractual agreement under which the rental company waives some or all of the renter’s financial responsibility for damage to or theft of the rented vehicle.
The waiver is subject to the terms and exclusions in the rental agreement. Before the rental, ask your church’s insurance advisor to confirm:
- Whether the church’s policy provides physical-damage protection for hired or rented vehicles
- The deductible that would apply
- Whether loss of use, diminished value, administrative charges, towing, and storage are covered
- Whether the type of vehicle being rented is eligible for coverage
- Which employees or volunteers are permitted to drive
Compare the church’s existing protection and potential out-of-pocket expenses with the cost and terms of the rental company’s damage waiver. If the church’s policy does not provide adequate protection, or if there is uncertainty about uncovered fees, purchasing the waiver may be prudent.
Remember that a damage waiver generally applies only to loss of or damage to the rented vehicle. It does not replace liability protection for injuries or damage involving other people or their property. Review all optional products and the church’s existing coverage with a qualified insurance advisor before the trip.
Rent in the Church’s Name and Identify Every Authorized Driver
Arrange the rental for church business, use a church-approved payment method that the rental company accepts, and ask that the church be identified as the renting organization whenever the company’s procedures allow.
The employee or volunteer picking up the vehicle may still be required to qualify as the primary renter and sign the rental agreement. Do not assume that adding “on behalf of the church” to an individual signature automatically eliminates personal responsibility. Review the agreement carefully, and confirm that the signer is authorized to enter the agreement for the church.
Every person who may drive should be disclosed and approved according to the rental company’s requirements. Confirm that each driver has the appropriate license, meets applicable age requirements, and is listed or otherwise recognized as an authorized driver under the agreement.
Churches that rent vehicles regularly may also benefit from establishing an organizational or business rental account with written procedures for reservations, payment, authorized drivers, and optional protection products.
Church Vehicle Rental Checklist
Before a church employee or volunteer leaves the rental location:
- Confirm that the reservation and rental agreement properly identify the church and the authorized renter.
- Verify that every person who may drive is permitted under the rental agreement.
- Confirm that each driver has the appropriate license and meets the rental company’s requirements.
- Review the church’s hired-vehicle coverage, applicable deductible, and potential coverage gaps with its insurance advisor.
- Decide whether to purchase the rental company’s damage waiver after comparing its terms with the church’s existing protection.
- Review the agreement for restrictions that could invalidate the damage waiver or other protections.
- Inspect the vehicle, and document any existing damage according to the rental company’s procedures.
- Confirm the process for reporting an accident, breakdown, theft, or vehicle damage.
Coverage and rental requirements vary by policy, vehicle, company, and location. Churches should complete this review before each rental rather than assuming that a previous arrangement still applies.
Church Transportation Requires Careful Planning
Almost every church occasionally uses vehicles for ministry activities, and transportation carries significant responsibilities for church leaders, drivers, and passengers.
Anchor Insurance Agency offers additional resources addressing driver selection, borrowed vehicles, golf carts, passenger vans, and other transportation risks. Visit our Risk Management Resources page to explore current guidance that can be shared with church staff and volunteers.
Review Your Church’s Protection Before the Trip
Planning a church trip or event involving a rented vehicle? Contact Anchor Insurance Agency before the rental to review how your current insurance program may respond and identify questions to ask at the rental counter.
Coverage varies by policy. Review your specific terms, limits, and exclusions with a qualified insurance advisor.
