The United States government has made arrangements with several car rental companies to cover all aspects of car rentals for federal employees, including those in the Department of Defense. Arrangements vary depending on the location of rental and other factors. The agreement, called the U.S. Government Car Rental Agreement, includes guidelines on rates, rules for unlimited mileage, removal of limits on the minimum age for rental and collision damage coverage.
According to the agreement, "Government renters will not be responsible for loss or damage to the vehicle" except in certain situations. The companies that sign the agreement have agreed to waive any claims relating to "costs of towing, administrative costs, loss of use, and replacements," and include every situation where damage occurs, including "casualty, collision, fire, upset, malicious mischief, vandalism, tire damage, falling objects, overhead damage, glass breakage, strike, civil commotion, theft and mysterious disappearance."
Exceptions to the damage waiver include automobiles obtained by fraud, operation of the vehicle by an impaired driver, vehicles used for pushing or towing another vehicle, using the vehicle to carry passengers or property for hire, using the vehicle in tactical or live-fire training, use of the vehicle in a race or competition, illegal use of the vehicle or use of the vehicle by an unauthorized person.
Car rental companies that have signed the U.S. Government Car Rental Agreement have agreed to provide a minimum amount of coverage for any incident where damage or injury occurs. The personal injury/wrongful death limits are $100,000 for each person, $300,000 for all persons in each event, and property damage limits of $25,000 for each event. If local requirements are higher than this, the company agrees to provide coverage at the higher level.
Because car rental companies that have signed the U.S. Government Car Rental Agreement have agreed to provide coverage for the rented vehicle, the Department of Defense will not reimburse any employee that decides to purchase additional car rental insurance coverage. Employees may still choose to purchase additional coverage higher than the amount the car rental company provides through the agreement, but does so at his or her own expense.
The U.S. Government Car Rental Agreement is also referred to as the U.S. Government Rental Car Agreement or the U.S. Government Rental Agreement. The official name is U.S. Government Car Rental Agreement. The naming variations depend on the agency, site or source referring to the agreement.