What is a backup vehicle?

One of the coverage options we offer members is to allow the designation of a seldom-used vehicle as a "back-up". "back-up" vehicles incur a smaller premium and are insured only for occasional use, when they must be placed in service to fill in for another vehicle that is out of service. This coverage saves members the cost of a full year’s premium for seldom-used vehicles, while providing an alternative to renting a replacement vehicle when one of their fleet is in an accident. Members who have backups simply notify our office hen these vehicles are being placed in service, and coverage is switched from the replaced vehicle to the backup. If a backup vehicle is used in addition to the regular vehicles, there is a $25.00 per day charge.

Note: No more than 20% of a members’ fleet can be designated as backup vehicles.

Can we insure personal vehicles that are being used for the organization?

The short answer is "partly". Under California law, the registered owners are required to provide minimum liability insurance on vehicles. However, your pool liability coverage provides excess coverage for vehicles not owned but used by your organization, such as staff and volunteer-owned cars. This insures that all vehicles in use for your organization have the same limits of coverage ($1 million or more) as your agency-owned vehicles, and protects your agency in the event that a non-owned vehicle performing agency business causes a loss exceeding the owner’s liability insurance limits.

Note: there is no collision coverage available through the pool for non-owned vehicles.

What is rental reimbursement coverage?

Rental reimbursement coverage will reimburse your cost to rent a vehicle to replace your vehicle while it is being repaired after an accident.

Costs range from $38.00to $113.00 per vehicle annually, depending on the amount of coverage chosen (ranging from $25.00 - $150.00 per day). Rental costs are reimbursed until vehicle repairs are complete, up to 30 days.

Note: Rental reimbursement coverage will not apply to vehicles out of service for scheduled maintenance or breakdowns. Rental reimbursement coverage is not available for members with backup vehicles.

What is Uninsured Motorist Property damage (UMPD) Coverage?

UMPD coverage is a good alternative to full physical damage coverage for older and less valuable vehicles. For a $20.00 annual premium, the vehicle will be repaired for damage caused by an uninsured motorist, up to $3,500.

Note: UMPD does not cover your damage when you are at fault and have no collision insurance.

What coverage do I have when I rent a vehicle? 

Your policy provides liability coverage on rented vehicles, up to the policy limits, but your policy does not provide any collision or comprehensive coverage on rented vehicles.  You can purchase collision and comprehensive coverage at the rental counter; it is usually called a “loss-damage waiver”.  Check your credit cards; some automatically provide this type of coverage for rental vehicles.

Always notify us before you rent a vehicle so we can add it to your policy; that way, if there is an accident, we can verify coverage quickly and adjust the claim. 

When do I have to tell NonProfits’ United that I’ve added a new driver? 

Under the terms of our Risk Management Standards, immediately!  Drivers cannot get behind the wheel until we have examined and approved their Motor Vehicle Record (MVR).   Individuals can obtain their own MVR by requesting it in person from the local Department of Motor Vehicles office.

We recommend requiring job applicants to submit an MVR as part of your hiring process. 

Can we loan a vehicle to another organization? 

Yes, but you must be sure your borrower has proper insurance coverage and you must notify us before turning a vehicle over to another agency. Your NonProfits’ United policy does not automatically cover your vehicles when they are loaned to another organization.  If you loan a vehicle, the other agency must assume responsibility for insuring the vehicle, and provide documents demonstrating that they have done so. 

Necessary steps for lenders and borrowers to follow are listed below.  If you need help with any of these steps, please call us - we’d be happy to help. 

Borrower and Lender Responsibilities

Prior to borrowing a member’s vehicle, the borrower must:

• Add the borrowed vehicle to the borrower’s business auto  insurance or general liability insurance. 
• Add the lending pool member as an additional insured on the borrower’s business auto or general liability policy. 
• Obtain a certificate, with additional insured endorsement, and
• Forward copies of these documents to the lending pool member.

Prior to lending a vehicle, our member must:

• Tell us which vehicle is being loaned, to whom it is being loaned, and the duration of the loan.
• Forward to us copies of the certificates and endorsements listed above. that were received from the borrower.

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