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Important Things To Remember When You’re Renting A Vehicle For Church Use

By October 1, 2024Auto/Transportation

Leasing a vehicle is relatively easy and for that reason, we don’t always give it a lot of thought but done wrong, it could cost your church hundreds if not thousands of dollars.

When leasing a vehicle for a church event, it’s important that you follow these guidelines.

Purchase The Physical Damage Coverage Offered By The Rental Agency

When you rent a car or van, you will most often be given the option of purchasing insurance coverage that protects you from paying for damage to the rental vehicle.  Even though it might cost between $15 and $30 per day, you want to purchase this coverage and here’s why.

  1. Unless the church’s insurance policy specifically provides this endorsement (some do but most do not), if the rented vehicle is damaged, you will be paying out of pocket for the resulting damage.  But even if the church’s insurance policy has this provision, it typically includes a $500 deductible or higher, and paying for the rental agency’s insurance is often less.

  2. The church’s insurance policy most likely will not cover “loss of use” as a result of the rental car’s being out of service for repairs, and the rental agency may charge you for the lost time and revenue for the number of days that vehicle is out of service.

  3. Purchasing the rental company’s policy eliminates the hassle factor – you simply turn the vehicle in and go home. Otherwise, you have to hold your breath and wonder if that little scratch was really there before you rented the vehicle and whether you’ll have to defend if it was or not.

Do Not Personally Sign The Rental Contract

When renting a vehicle, we always recommend using the church’s credit card as opposed to the personal credit card of the individual renting the vehicle. But most importantly, when signing the contract, be sure to sign “on behalf of XYZ Church.” The rental contract you are signing attests that you are responsible, so by signing on behalf of the church, you’re making it clear that you’re only representing the church and not personally renting the vehicle.

Summary

Almost every church is occasionally involved in some form of Transportation and it’s an area that carries a lot of risk and a lot of responsibility.  Consequently, we have numerous articles on our website in this category ranging from loaning vehicles to others, driver selection, golf carts, 15 passenger vans, and more.  I’d encourage you to take a look.  Simply click on Resources, then Articles and look under the category heading of Auto/Transportation. 

Also here’s a link to our Transportation Safety Article – one of our favorite articles that can be printed and shared with your staff. 

Gary Benson

Gary Benson has been an agent for over 40 years, primarily serving churches and nonprofits. He is the agency principal for The Woodlands, TX office of Insurance One.