Policy & Procedure
Table of content
Introduction ... 4
RT Program Description ... 4
RT Policy & Procedure Manual ... 4
Section 1 – RT Desk Operations ... 5
Introduction ... 5
Renting Procedures Checklist ... 5
Reservation Card ... 5
RT Rental Agreement ... 6
Completing the Rental Agreement at Rental ... 6
Completing the Rental Agreement at Return ...18
Long-term Rentals ... 23
Non-Revenue Tickets ... 24
Renting to Employees ... 25
Roadside Assistance ... 25
Accidents ... 27
Other Resources ... 28
Section 2 – RT Administration ... 29
Vehicle Documentation ... 29
Vehicle Maintenance ... 30
Rent a Toyota Insurance Partners ...31
Insurance Coverage Limits and Deductibles ... 32
Insurance Coverage Definitions ... 34
Loss Settlement Procedures ... 37
Insurance Products NOT Included in RT Insurance Policies ... 39
Use and Restrictions ... 40
Section 3 – RT Fleet Management ... 42
How to Become a Rent a Toyota (RT) Dealer ... 42
Vehicle Ordering Errors ... 48
RT Vehicle Sales Credits and Incentives ... 47
Early and Late Payoffs ... 50
Taxes, Expenses and Other Charges ...51
RT Vehicle Financing ... 52
Billing Adjustments/Corrections ... 56
Removing RT Vehicles from Service ... 57
RT Financial Statement ... 59
Financing Retired Vehicles ... 62
Off-Site Operations ... 62
Vehicle Asset Control/Auditing... 66
Rental Training and Recognition Programs ... 66
Forms and Record Keeping ... 69
Key Resources ...71
Glossary of Acronyms and Initials ... 72
Telematics Addendum ... 74
Introduction ... 74
Telemetry Data ... 74
Introduction
RT Program Description
The Rent a Toyota (RT) program is a successful dealership-based vehicle rental franchise which enhances Toyota customer satisfaction and retention. Established in 1988 as Toyota Rent a Car (TRAC) and re-branded in 2019 as Rent a Toyota (RT), program benefits include:
• Rent a Toyota revenue
• Additional traffic to the dealership
• Well-maintained vehicles that may eligible for certification and sales as TCUV
RT Policy & Procedure Manual
This Policy & Procedure manual provides the information you need to confidently address and understand in order:
To master Rent a Toyota operations:
• Study Section 1 first.
• Continue building your understanding in Section 2.
Section 1
RT Desk Operations
Section 1 covers the policies and procedures that govern the everyday tasks required to work the rental desk, including:
• Reservations
• Rental Agreements
• Repeating Rentals
• Non-Revenue Tickets
• Roadside Assistance
• Accidents
Section 2
RT Administration
Section 2 covers policies and procedures for the administrative activities that keep an RT
operation running smoothly, such as:
• Reporting vehicle damage and loss
• Handling downed vehicles that must be towed back to the rental location
• Determining insurance coverages for damage and loss
• Bringing vehicles in and out of RT service
Section 3
RT Fleet Management
Section 3 covers the policies and procedures required to plan, build, and manage an RT fleet, including:
• Planning fleet requirements
• Financing and ordering new RT vehicles
• Scheduling vehicle payoffs and removing vehicles from service
• Financial reporting for RT dealerships
Thoroughly understanding all the policies and procedures covered here will help you build a thriving Rent a Toyota program at your dealership while controlling risk and minimizing liability.
Section 1 – RT Desk Operations
Introduction
Properly completed Rental Agreements. Well-handled roadside emergencies. Accidents promptly and correctly reported. These everyday rental desk activities are critical to customer satisfaction and a successful RT operation. So, a thorough understanding of the policies and procedures described here in Section 1 – RT Desk Operations is a pre- requisite to successful performance at the RT desk and smooth ongoing RT operations.
Renting Procedures Checklist
The Renting Procedures Checklist provides quick reminders for key requirements in the rental process. Keep a copy of the Renting Procedures Checklist on hand at the desk; it will provide a valuable reference throughout the day.
Reservation Card
The Rental Reservation Card (Form RT 8840) is a useful way to record customer
information for potential rentals. It also helps the customer make sure everything is in place before they make the journey to the rental counter to pick up their rental vehicle.
RENTING PROCEDURESCHECK LIST
Use this “Check List” at your Counter. It’s designed to help you easily and quickly qualify your customers, complete the RA and checkout. When needed, it can also be used for Follow-Up on overdues and Accident Reporting.
FOR ALL CUSTOMERS:
• REQUEST AND EXAMINE DRIVER’S LICENSE OR INTERNATIONAL DRIVING PERMIT (IDP).
• Ask if address shown is current; verify customer physical appearance vs. photo.
• Check license expiration date (valid)?
• Does license seem altered or forged?
• Compare signatures on license and your RA.
• Check for restrictions (must wear glasses; will they affect operation of vehicle?).
• Obtain home and work addresses with telephone numbers (where customer can be reached).
• Qualify all additional drivers the same as rental customers. List all drivers by name, license number and birth date. If NONE, have customer sign across that section of the RA.
• Confirm that intended vehicle use is proper and not prohibited (RA page 2, paragraph 2).
• Obtain CDW elections with initials.
• On monthly rentals (and others if you require), check driver’s MVR (Motor Vehicle Record).
• DATE AND TIME DUE IN MUST BE ENTERED.
• Review customer responsibilities (RA page 2).
• Have customer sign RA to make it legal.
• Verify condition of rental vehicle.
FOR CREDIT CARD CUSTOMERS:
• Obtain credit card authorization on all charges.
• Check expiration date of credit card and personal ID; are they still valid?
• Establish positive ID: Are name and signature on driver’s license, credit card and personal ID the same as name and signature on your RA?
FOR SERVICE DEPARTMENT CUSTOMERS:
• Check registration of vehicle customer left in the service department (who owns it?)
• Verify its repair time estimate with your Service Manager (date and time due ready).
• Check method of payment — cash vs. credit card; cross reference the service repair order and rental agreement.
FOR ORGANIZATION OR FLEET RENTALS:
• ASK WHO WILL BE DRIVING THE VEHICLE. GET NAMES OF ALL DRIVERS AND LICENSE NUMBERS.
• Confirm vehicle, rates and billing procedures.
• WHAT INSURANCE COVERAGE DOES THE ORGANIZATION HAVE, AND WHO IS THE CARRIER?
• If possible, check all driver’s MVR.
• RENTALS MUST BE TO INDIVIDUALS, INSTEAD OF THE ORGANIZATION.
FOR OUT-OF-TOWN CUSTOMERS:
• Obtain and verify local address/phone (hotel, motel).
• Get names of 2 people your rental customer will be contacting (phone numbers if available).
• Verify employment (phone, person-to-person to its personnel office).
FOR CASH CUSTOMERS:
• Complete rental application in person (24 hours in advance when possible).
• Call personnel office to verify work phone, address, time on job and position.
• Call to verify home address (how long); phone in customer’s name (copy of bill).
• Confirm bank account, other references.
• Qualify all additional drivers the same as rental customers.
• Collect deposit plus a percentage of estimated rental charges payable at Check-Out.
• Do not rent after business hours.
• Do not accept checks (unless Manager approves).
• All rental extensions must be made in person with your rental vehicle present.
• Verify customer insurances valid and covers rental vehicle (phone carrier/agent, get name, policy number, coverages and expiration date).
• Request a Consumer Credit Report (if desired).
FOR SPECIAL GROUPS OF CUSTOMERS:
• Includes insurance replacement, small local companies, independent garages, military, student, young and old drivers, self-employed, unemployed and retired persons.
• Follow the INSURANCE STANDARDS recommendations and any special instructions from your manager.
DO NOT RENT TO ANYONE OR LET ANYONE DRIVE WHO HAS AN UNACCEPTABLE MVR:
• Insurance Standards (detail 2, Driver’s License) lists problems to avoid.
• Does not have a valid driver’s license or IDP.
• Is under minimum age of 21 (sometimes 25).
• Appears to be under the influence of alcohol or drugs.
• Does not meet ALL your qualification requirements.
• Wants lots of insurance or to pay by check.
• Is doubtful, nervous or suspicious.
• Is planning Prohibited Use (see Policies & Procedures #8).
IF AT ANY TIME, IT’S NOT OK — DON’T RENT!
Politely, but firmly refuse the rental — and offer to refer the applicant to others.
FOLLOW-UP: Check OPEN RA DUES DATES daily; notify your Manager of actions taken.
• No extension without returning with rental vehicle to your office for approval, RA entry or to leave additional cash.
• If OVERDUE, work cash rentals first, then most problematic charge rentals. Exert every effort to contact customer, review procedures, determine next steps with your Manager.
• After all means of locating customer and your vehicle have been exhausted, contact our insurance company and the police.
Refer to Policies & Procedures for definition of insurance coverages, claims handling and loss settlement procedures.
PROMPT ACTION REDUCES CLAIMS EXPENSE!
ACCIDENT OR LOSS REPORTING:
Contact: Sedgwick Claims Management Services Telephone: 1-866-739-8722
1. Did you fill out the Automobile Accident Report Guide located in the glove compartment?
2. Was a Police Report filed? (If YES, get name and location of the Police Department.)
3. Did you call our insurance company (Sedgwick)?
4. Did you get a claim number? (What is it?)
If the answer is NO to any of the above questions, call Sedgwick for assistance.
DON’T COMPROMISE YOUR CUSTOMER QUALIFICATION PROCEDURES!
USE THE INSURANCE STANDARDS, RA COMPLETION GUIDE AND LOSS REDUCTION “TIPS.”
RT 8843 8/20
(PLEASE PRINT) CUSTOMER NAME
RESERVATION CARD
□ NEW
WILL ARRIVE
□PREVIOUS HOME ADDRESS
CITY STATE ZIP CODE
DRIVER’S LICENSE NUMBER STATE EXPIRES
/ /
BIRTHDATE HOME TELEPHONE BUSINESS TELEPHONE
/ / ( ) ( )
EMPLOYER’S NAME CITY STATE
INSURANCE COMPANY NAME POLICY NUMBER EXPIRES
/ /
INSURANCE TELEPHONE COLLISION LIABILITY COMPREHENSIVE
( )
TYPE OF VEHICLE REQUESTED
LENGTH OF RENTAL
DEPOSIT REQUIRED
RESERVATION
PAYMENT □ CREDIT □ CONFIRMED
□ NOTCONFIRMED RATE QUOTED
CREDIT CARD NUMBER EXPIRES
/ /
□ CASH□ OTHER ALTERNATE VEHICLE
REMARKS
CUSTOMER REFERRED BY
TAKEN BY TODAY’S DATE
□RENTED
□NO SHOW
□CANCELLED
00635-RESER-VCARD RT 8840
/ /
$
AMEX DC MC VISA OTHER
DATE / /
TIME A.M.
P.M.
RT Rental Agreement
The RT Rental Agreement (RA) is the legal document used to define the rental terms and determine liability in the case of loss, damage or an insurance claim. Without exception, all customer rentals require a valid RA to be properly completed and signed by the customer.
The next two sections describe proper completion of the Rental Agreement at Rental and Return.
Completing the Rental Agreement at Rental
This section describes the information to be recorded on the Rental Agreement before the customer takes possession of the rental vehicle.
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Note: A properly completed Rental Agreement (RA) must be presented in order to maintain physical damage insurance coverage.
For claim settlement purposes, a “properly completed RA” is defined as the accurate completion of the fields identified below:
• Customer Information (see “Completing the Rental Agreement at Rental,” Section 1)
- Customer Name, Home Address, City, State, Zip Code - Driver’s License Number, State, Expiration Date, Birthdate
• Rental Vehicle (see “Completing the Rental Agreement at Rental,”
Section 5)
- Vehicle Identification Number (VIN)
• Rental Period (see “Completing the Rental Agreement at Rental,”
Section 7)
- Date and Time Out - Date Due In
• Rental Rates (see “Completing the Rental Agreement at Rental,”
Section 13)
- Prevailing rental rate
• Signature and Date (see “Completing the Rental Agreement at Rental,”
Section 14)
- Customer Signature, Signature Date
• Time In (see “Completing the Rental Agreement at Return,” Section 2) - Date and Time In
These fields must be completed (and accurate) in order to maintain your physical damage coverage!
Customer Information
Use this area to record ID and contact information for the primary renter.
• Record all information exactly as it appears on the primary renter’s Driver’s License (DL).
• Record all information directly from the Driver’s License. Do not let the renter read the information to you or take this information over the phone.
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CUSTOMER NAME:
• The primary renter’s first and last name, exactly as it appears on the Driver’s License.
TO BE PAID BY (Optional):
• Include this information if someone other than the primary renter will pay for the rental fees (e.g., Sales Department paying for a test-drive, warranty work, etc.).
LICENSE NUMBER/STATE:
• License plate and state for the customer’s personal vehicle, if applicable.
HOME ADDRESS/CITY/STATE/ZIP:
• The primary renter’s home address as shown on the renter’s DL.
• Ask the renter if this address is still current. If not, enter the renter’s current address in the blank area reserved for additional information.
VERIFIED:
• Manager’s initials (if applicable).
DRIVER’S LICENSE:
• Include the full Driver’s License number, issuing state and expiration date.
• Verify that the DL is not expired and carries no driving restrictions.
BIRTH DATE:
• The renter’s date of birth (DOB) as listed on the DL.
• The renter must be at least 21 years of age unless otherwise dictated by state law.
HOME PHONE/MOBILE PHONE/EMAIL:
• The renter’s home phone and mobile phone numbers. Be sure to list the area code.
• The renter’s preferred email address for personal business communications.
Local/Other Contacts
Obtaining local contact and employment information provides alternate ways to reach the renter. In the event of a conversion, this information will be extremely important.
• Employer information is critical because if the renter is using the rental vehicle for business purposes at the time of loss, our insurance partners may have an additional subrogation or recovery source.
LOCAL CONTACT:
• A local contact name, address and phone number where the renter might also be reached.
• For out of town customers, list the hotel where the renter will be staying.
EMPLOYER’S NAME/PHONE NUMBER:
• Name of renter’s employer. List the company name and phone number and area code.
EMPLOYER’S ADDRESS/CITY/STATE/ZIP:
• Full street address of renter’s employer.
VERIFIED:
• Manager’s initials (if applicable).
REFERRED BY:
• Name of person who referred the renter to the dealership. (If applicable.) BILL TO:
• Name, phone number and address of person who will be billed for the rental (if other than the renter/driver).
VERIFIED:
• Manager’s initials (if applicable).
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AUTHORIZED BY:
• Name of the manager or person who authorized the alternate billing source.
AMOUNT AUTHORIZED:
• Billing limit authorized by the alternate billing source.
Additional Drivers
Use this area to record ID and contact information for any additional drivers.
• Any additional driver(s) must be present during the rental transaction and provide valid ID. Verify that the DL(s) are not expired and carry no driving restrictions.
• Never use the DL information from a prior Rental Agreement. Always view the actual DL each time.
• Whenever feasible, make a photocopy of the DL and maintain this copy with your rental paperwork for this transaction.
ADDITIONAL DRIVER NAME(s):
• The authorized additional driver’s name exactly as it appears on the DL.
LICENSE NO:
• The authorized additional driver’s license information as listed on the DL presented to you for this rental transaction.
• Include the full DL number.
STATE and EXP DATE:
• Issuing state and expiration date of any additional driver’s license.
BIRTH DATE:
• The additional driver’s DOB as listed on the DL.
• Make sure that the additional driver meets the minimum age requirement for the RT program — at least 21 years of age unless otherwise dictated by state statute.
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Notes:
If there are no additional drivers at the time of rental:
• Draw a diagonal line through this area and write the word NONE in this area.
• Have the renter sign on the diagonal line to confirm that no other individuals have been authorized to drive the rental vehicle.
If the renter wishes to add an additional driver during the rental period:
• Have the renter return to the dealership and close the original contract.
• Reinspect the rental vehicle.
• Open a new RA, listing the additional driver (who must be present) after you’ve viewed/verified his/her DL and ensured that he/she meets the minimum age requirement for the RT program.
Other Information
This area will contain any
additional wording required by your state or dealership, such as:
Telematics Release
• Have the customer initial the Telematics Release, accepting that the vehicle will be
monitored through telematics during the rental period.
Collision Damage Waiver (Optional)
• If your dealer is offering/
selling CDW, the appropriate state required verbiage will appear in this area.
Do not change or alter any pre-printed information located in this area.
You may use the blank space to record any additional information, document address changes for the renter, or add instructions to the renter about refueling, toll charges, pets in the vehicle, etc.
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Rental Vehicle
Use this area to specify the vehicle being rented.
• Leaving this area blank or entering incorrect information will void the contract and eliminate coverage for any loss arising from this rental.
VEHICLE IDENTIFICATION NUMBER (VIN):
• The full Vehicle Identification Number of the RT vehicle being extended under this rental contract.
• If your dealership uses an internally assigned stock number or fleet number to identify vehicles, that number should be recorded in the “Other Information” section of the Rental Agreement. Failure to record the VIN in the assigned area can result in claim denial.
YEAR – VEHICLE LINE:
• Year and model of the RT vehicle being rented.
REGISTRATION NUMBER:
• All RT vehicles must be hard-plated. Enter the license plate number and issuing state in these fields.
• If the vehicle has yet to be hard-plated (still has temporary tags, awaiting hard-plate), be sure to indicate that the numbers listed are for a temporary tag by noting “TEMP.”
MODEL AND COLOR:
• Model and color of the RT vehicle being rented.
Mileage
Use this area to keep track of the starting mileage and allowable mileage.
• This information will be used when the vehicle is returned to calculate chargeable miles.
MILEAGE OUT:
• Enter the mileage reading directly from the odometer of the rental vehicle at the beginning of the rental.
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MILES ALLOWED:
• If your facility limits the number of miles allowed, enter that number here and ensure that the customer is aware of the limit.
Rental Period
Use this area to record the rental period and confirm the customer is aware of when the vehicle is due back.
• This information will be used when the rental is returned to calculate chargeable rental days.
• Leaving the Date DUE IN blank creates an open-ended contract. Local law
enforcement may be unable to assist you with a converted vehicle if a Date DUE IN is not clearly documented on the contract signed by the renter.
DATE AND TIME OUT:
• The exact date and time that the vehicle was rented to the customer and left your dealership.
Enter the month/day/year and time — including an indication of a.m. or p.m.
DATE DUE IN:
• The date and time that you expect the vehicle to be returned by the renter. If you are unsure when
the rental will be concluded (e.g., the customer’s vehicle is at a body shop for repairs or at the Service Department for extensive maintenance), select an estimated but reasonable time frame — not to exceed thirty (30) calendar days from the Date OUT.
MAXIMUM PAYLOAD:
• Record the maximum payload for the vehicle.
• Advise the renter not to exceed the maximum payload.
Important: A single Rental Contract may not exceed a 30 day period. If your renter needs a longer rental period, this can be accommodated by having the renter return to your location, be re-qualified and complete/execute a new Rental Agreement prior to the due date. See “Long-term Rentals”
below.
Deposit
DEPOSIT TOWARDS DAILY RATE:
• Record any deposit to be applied to the daily rental rate.
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Rental Extension
At the dealership’s discretion, the rental period can be extended up to 21 days beyond the original due date, not to exceed 30 days total.
• Provide the customer with an updated RA documenting the new rental period. This documentation will be required in case of an accident or traffic stop.
EXTEND TO DATE:
• New Date DUE IN, as agreed to with the renter when authorizing an extension of the original RA.
DEPOSIT TOWARDS DAILY RATE:
• Any additional deposit taken from the renter in consideration for the additional rental days agreed to with the extension.
DATE EXTENDED:
• Date on which the original RA was extended.
INITIAL:
• Initials of the employee conducting and authorizing the rental extension.
Important:
• The rental extension should be conducted on an existing Rental
Agreement. Any additional extension may be conducted as a separate Rental Agreement. The customer should return to your location to be re-qualified, the vehicle should be re-inspected and the renter should complete/sign a new RA.
• If you are granting additional rental days (beyond the original rental period) because the customer’s own vehicle will not be ready (e.g., extensive service being performed, parts on backorder, etc.) you may extend the original contract.
• If the renter requests additional rental days for any reason other than above, you should give careful consideration before agreeing to the extension. This extension should not exceed more than an additional 7–10 days beyond the original rental period.
• Never automatically extend a rental period simply because the renter has not returned the vehicle by the originally agreed upon Date DUE IN.
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Fuel Level
FUEL LEVEL – OUT:
• Indicate the fuel level at time of rental.
• This will be compared to the fuel level at return to determine any additional charges.
Vehicle Condition
Use this area to note the condition of the vehicle at the time of rental.
VEHICLE DIAGRAM:
• Document any damage noted during your pre-rental inspection and review/discuss with the renter while he/she is still present at the dealership.
• If the vehicle was provided to the renter with absolutely no damage, write NONE across the vehicle diagram.
• Point out the RT Accident Report Guide located in the glove box and advise the renter that all accidents must be reported immediately.
INITIALS:
• Obtain the renter’s initials on this line after you’ve noted any existing damage on the vehicle diagram or written NONE.
Insurance Information
Use this area to record the renter’s personal insurance information.
• Whenever feasible, verify with the renter’s insurance company or Agent that coverage from the personal policy will transfer to your rental vehicle in the event of a loss.
• At rental, instruct your customers that every accident MUST BE PROMPTLY REPORTED TO YOU for proper and accurate handling with Sedgwick.
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NAME OF INSURED:
• The Named Insured listed on the renter’s personal insurance policy.
INSURANCE COMPANY NAME:
• Name of the issuing insurance company for the renter’s personal insurance policy.
If possible, make a photocopy of the renter’s personal insurance ID card and maintain this copy with your rental paperwork for this transaction (along with the photocopy that you made of the renter’s DL).
Rental Rates
Use this area to document your rental rates and fees (e.g., mileage fees, hourly/daily/
weekly rental rates, fuel fees, applicable taxes, etc.).
• This information will be used to calculate charges when the vehicle is returned.
Notes:
• You must complete the rental rates column at all times - even when providing an internal-billed rental, such as a customer satisfaction rental paid for by the Sales or Service Department. This is required to demonstrate that the transaction was a bona fide rental where a fee was charged and collected for the renter’s use of the vehicle.
• For internal rentals, record a valid internal or warranty rate in the Rental Rates area, and indicate “Service” or “Warranty” in the “To Be Paid By”
box at the top center of the Rental Agreement.
• Recording an unauthorized rental rate such as “No Charge” or “Loaner”
or a token amount (such as $1) that is less that the prevailing rate will result in the denial of any claim related to the rental.
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Signature and Date
Use this area to obtain the customer’s signature, confirming that the customer agrees to the terms of the rental contract.
• Allowing anyone other than the primary renter or an authorized additional driver to sign the RA voids the contract and eliminates coverage for any loss arising from this rental.
SIGNATURE:
• Signature of primary renter or authorized additional driver.
DATE:
• Ensure that the renter uses the correct date. The correct date here eliminates any confusion/argument later that the RA was completed after an accident occurred.
Note: At signature, advise the renter of their full responsibility for the RT vehicle while it is in their possession and to ensure that the renter knows when (date/time) the vehicle is due back.
Check Out Information
Use this area to note who help the customer at rental.
CHECKED OUT BY:
• Name of the employee who completed the check-out procedure at rental.
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Completing the Rental Agreement at Return
This section describes the information to be recorded on the Rental Agreement when the vehicle is returned at the end of the rental period.
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Mileage
Use this area to record the mileage in and calculate the miles driven.
MILEAGE IN:
• Enter the mileage reading directly from the odometer of the rental vehicle at the end of the rental.
MILES DRIVEN:
• Mileage IN (at the end of the rental) minus Mileage OUT (at the beginning of the rental).
MILES ALLOWED:
• The number of miles allowed on the per the rental contract.
CHARGEABLE MILES:
• The number of miles driven beyond the Miles Allowed per the rental contract.
Time In
Use this area to document date and time the vehicle was returned.
DATE AND TIME IN:
• The exact date and time that the vehicle was returned to the dealership by the renter. Enter the month/day/year and time — including an indication of a.m. or p.m.
• In the event of a theft or conversion, do not close the contract until a Theft or Police Report has been filed as the date you notify Police becomes the Date of Loss for your claim.
• The rental period is measured by the number of calendar days between the Date OUT and the Date DUE IN, with the Date OUT and Date DUE IN each counting as one day.
Vehicle Return
Use this area to flag any new damage to the vehicle upon return.
VEHICLE RETURNED AT:
• If the vehicle was not returned to your Rental Department or dealership location, list the location where the vehicle was returned.
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NO DAMAGE:
• Following your post-rental inspection, check this box if no new damage was noted — as compared to the items noted on the vehicle diagram during your pre-rental and rental check out process.
DAMAGE DESCRIPTION:
• Following your post-rental inspection, check this box if new damage was noted — as compared to the items noted on the vehicle diagram during your pre-rental and rental check out process.
• In the space provided below the box, describe the damaged area(s) or part(s).
SPARE/JACK:
• Use these boxes to confirm that the spare and jack are present and in good order.
Fuel Level
Use this area to record fuel level at return.
FUEL LEVEL – IN:
• Indicate the fuel level at time of return.
• This will be compared to the fuel level at rental to determine any additional charges.
Damage Description
Use this area to note the condition of the vehicle at when it is returned.
VEHICLE DIAGRAM:
• Document any new damage noted during your post-rental inspection.
• Review/discuss with the renter while he/she is still present at the dealership.
SHOP NAME/PHONE NUMBER/CONTACT:
• If the vehicle is sent out for repair, record the contact information for the repair shop.
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VEHICLE MAKE/MODEL:
• Record the vehicle make and model.
Date of Loss
Use this area to record Date of Loss and repair information.
DATE OF LOSS:
Date of Loss is critical to any claim, although in certain circumstances Date of Discovery or Date of Return may be used
• Date of Loss (DOL): Date the loss or damage occurred, except on a theft or conversion where the “date of loss” is the date the incident is reported to the police department.
- For all police reports, obtain the name of the officer who took the report along with the precinct name and report number.
- A written report provides better documentation than a note regarding a verbal report.
• Date of Discovery (DOD): Date the loss or damage was discovered by the RT dealer.
The DOD can be used as the Date of Loss if the actual date of the incident is unknown or cannot be confirmed.
• Date of Return: The date the customer returns the vehicle or notifies the dealer that the vehicle is disabled due to an accident. Recovery of a theft or conversion is defined as repossession of the vehicle by the dealer, police or an auto
recovery agency.
CL #/RO/PO:
• Record the Claim Number, Repair Order Number or Purchase Order Number.
Rental Charges
Use the lines provided to calculate and document the actual rental fees specific to this rental transaction.
• You must complete the rental rates column even when providing an internal-
billed rental, such as a customer satisfaction rental paid for by the Sales or Service Department. This is required to demonstrate that the transaction was a bona fide rental where a fee was charged and collected for the renter’s use of the vehicle.
• For internal rentals, record a valid internal or warranty rate in the Rental Rates area, and indicate “Service” or “Warranty” in the “To Be Paid By” box at the top center of the Rental Agreement.
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• Recording an unauthorized rental rate such as “no charge” or “Loaner” or a token amount (such as $1) that is less that the prevailing rate will result in the denial of any claim related to the rental.
Payment Method
Use this area to record payment details such as payment method, refunds, etc.
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CHARGED/CARD TYPE:
• Record the amount charged towards payment for the rental and card type.
EMPLOYER/OTHER:
• Indicate if the amount was charged to an employer or payee other than the renter.
CARD VERIFIED/EXPIRES/OTHER:
• Confirm card verification, expiration date and any other details.
PAID:
• Record and initial any cash amounts received.
REFUNDED:
• Record any amount refunded to the customer and have the customer initial to confirm receipt.
CHECKED IN BY:
• Name of the employee who completed the check-in procedure when the vehicle was returned.
Long-term Rentals
Some customers need access to a rental vehicle for longer than the Rental Agreement’s one month limit. This can be done by creating a series of consecutive rental contracts, with each individual rental period less than 30 days.
• Rentals contracts longer than 30 days are governed by different laws than rental contracts that are less than 30 days. Writing a rental contract for a rental period that is longer than 30 days voids all coverage against loss, and could dramatically impact your dealership’s ability to recover the vehicle in case of theft or conversion.
• We recommend dealers establish each rental agreement for a period of twenty-five (25) days or less to give the dealer a grace period should the renter be unable to return to the dealership on the exact date requested.
How to Renew a Rental
Before writing a new Rental Agreement:
• Inspect the vehicle for damage, wear and tear, and any service or maintenance needs. New damage must be immediately addressed while the renter is still present.
• Recheck the renter details. (i.e. valid driver’s license, etc.)
Then create a new rental agreement (i.e., the agreement must have new RA#) for the next 25-day period, and obtain the renter’s signature on the new contract.
Limitations:
Consecutive rental contracts are subject to the following limitations:
• Back-to-back rentals may not exceed twelve (12) consecutive months.
• The vehicle must be changed at least every 90 days or on every 4th rental.
• After twelve (12) consecutive months of renting to the same customer (and all others residing at the same address), the dealer must cease renting to this individual
and all others residing at the same address for at least thirty (30) days before reestablishing a rental relationship.
Non-Revenue Tickets
In some cases, a dealership employee must use an RT vehicle within the course and scope of their employment.
Course and scope of employment usage includes:
1. Moving the vehicle to be washed, fueled or serviced.
2. Conducting a customer drop-off or pickup.
3. Manager authorized RT sales calls made during the hours of 9 a.m.
to 6 p.m. where the RT employee is the sole occupant.
Activities included under the course and scope of employment should conducted under a Non-Revenue Ticket (Form RT 8841). In the event of an accident, police or law enforcement agencies may require this documentation at the scene. It is also required as part of the documentation for any claim submitted for damage or loss that occurs during non-revenue activities.
Note: If the vehicle remains on dealership property, a Non-Revenue Ticket is not required.
Customer Drop-Offs and Pick-Ups
An RT vehicle may be dropped off or picked up at an offsite location. In these cases:
• A non-revenue ticket must be written to cover the period when the employee is driving the vehicle for drop-off or pick-up.
• A standard Rental Agreement must be completed to cover the rental period when the vehicle is in the customer’s hands.
When executing a rental agreement in the field, be sure to:
• View, verify and record the renter’s Driver’s License information and Date of Birth
• Obtain the renter’s signature on the completed RA.
Be sure to keep the signed copy of the RA. Another copy of the completed RA should be left with the renter.
Restrictions:
• An employee using a RT vehicle to complete scope and course activities should never do so under a completed RT Rental Agreement (RT 2020).
• Under no circumstances should non-employees be permitted to operate a RT vehicle under a Non-Revenue Ticket.
• Non-revenue tickets may not be used for travel to and from training classes.
Renting to Employees
Employees may rent RT vehicles for personal use. However, this must be documented using the standard RT Rental Agreement (RT 2020).
• Employee must pay for personal use of an RT vehicle via personal credit card, debit card or a means traceable/confirmed by an outside source, thereby making it a bona fide rental.
• Employee rentals may not be paid for using cash, payroll deductions, inter- departmental billing, etc.
When an employee rents an RT vehicle:
• All drivers should meet all of the same appropriate qualification standards as rental customers.
• The same contractual obligations and responsibilities apply to the employee/
individual as would apply to any renter. Recovery of any loss – up to the full value of the vehicle – will be sought with the employee’s insurance carrier and/or directly with the employee.
Roadside Assistance
RT vehicles come with Roadside Assistance. Vehicles are protected anywhere in the U.S., 24-hours a day, 7 days a week for the first two years of service.
• To be eligible for Roadside Assistance, RT customers must call the Roadside Assistance number found on their RA.
• Roadside Assistance services arranged in other ways by the renter or directly by the dealer are ineligible for reimbursement.
Roadside Assistance
(800) 599-6766
The Roadside Assistance agent will use the VIN and rental agreement number to verify eligibility, then locate the appropriate independent service provider for towing or other roadside services.
If the customer’s safety is in question, the Roadside Assistance agent will stay on the line with the customer, and if necessary, will assist the caller in reaching the local police department if necessary.
Available Services
Roadside Assistance can provide:
• Fluid Delivery (water, oil and up to three gallons of gasoline)
• Tire Changes
• Jump Starts
• Mechanical Breakdown Aid
• Lockout Service
• Towing Limitations:
Towing or other expenses due to accidents and acts of vandalism are not covered by Roadside Assistance and are generally the responsibility of the RT dealer or the renter. Roadside Assistance will contact the RT dealer for instructions under these circumstances.
Roadside Assistance covers up to 25 miles of towing for a disabled RT vehicle.
• If the disabled vehicle is within 25 miles of the renting dealer Roadside Assistance will have the vehicle towed to rental location unless otherwise directed. The towing expense is covered by the RT Roadside Assistance program.
• If the vehicle is farther than 25 miles from the rental location:
- The renting dealer can have the vehicle towed to the nearest Toyota dealer. If the dealer is within 25 miles from the breakdown location, the towing expense is covered under the RT Roadside Assistance program.
- If the RT dealer chooses to have the vehicle towed back to the rental location, or to another location that is farther than 25 miles, the RT dealer will be billed for towing at the service provider’s negotiated rates.
After Business Hours
If the RT dealer is not open, Roadside Assistance will arrange for the vehicle to be towed and stored until the RT dealer can be contacted for instructions.
The RT dealer can then seek reimbursement through the Toyota warranty system, if applicable.
Accidents
Claim Reporting Requirements
Tokio Marine & Nichido Fire Insurance Co., Ltd. (U.S. Branch) provides primary coverage for all RT vehicles and should be the first to respond to any loss or damage. Any
incidents, accidents or losses involving an RT vehicle must be reported to Sedgwick immediately.
You will need the following information to file a claim:
• 5 digit Toyota dealer number.
• Full VIN of the RT vehicle involved in the accident.
• Date of Loss or the date you discovered/noticed the damage, if the actual Date of Loss is unknown.
- Date of Discovery (DOD): Date the loss or damage was discovered by the RT dealer. The DOD can be used as the Date of Loss if the actual date of the incident is unknown or cannot be confirmed.
- Date of Loss (DOL): Date the loss or damage occurred, except on a theft or conversion where the “date of loss” is the date the incident is reported to the police department.
- For all police reports, the RT dealership should obtain the name of the officer who took the report along with the precinct name and report number. It is preferred that a written report be made.
- Date of Return: The date the customer returns the vehicle or notifies the dealer that the vehicle is disabled due to an accident. Recovery of a theft or conversion is defined as repossession of the vehicle by the dealer, police or an auto recovery agency.
• The state where the accident occurred.
• Name and phone number of the renter*.
*Note: If your claim involves an employee “behind the wheel” at the time of loss, you’ll need to provide the name and contact information of the employee that was utilizing/driving the vehicle.
Sedgwick Claims Reporting
Web: https://www.trac.rentalautoclaim.com/
Phone: (866) 739-8722
Claims can no longer be reported via the 24x7claims.com site or by fax.
Be sure to record the Sedgwick claim reference number for your report. All future communication on the claim should include this Sedgwick claim number.
• Your dealership should assign a designated person to review all accident reports to ensure the reports are accurate, complete, and promptly submitted.
Employee Accidents During Course and Scope of Employment
Loss caused by your own employees can have a large impact on your RT loss history.
Whether or not the employee was at fault, the exposure associated with an employee behind the wheel (versus a renter) is taken seriously by our insurance partners and is under constant review and analysis. To minimize your dealership’s liability during work- related incidents:
• Ensure that employees understand acceptable and prohibited usage of a RT vehicle.
• Ensure that employees are aware of and have completed a Non-Revenue Ticket for their course and scope use of a RT vehicle.
• Ensure that employees understand their responsibility for the RT vehicle.
Claim Adjustment
All claim adjustments and repairs must be initiated by Sedgwick.
Important: Never adjust, handle, or initiate repairs on any claim without clear direction and approval from the Sedgwick Handling Representative assigned to your case. Doing so could cause Sedgwick/Tokio Marine Management, Inc. to deny the claim, exposing your dealership to hidden liability that could be avoided by following procedure.
Other Resources
In addition to this manual, the following resources are available to build your RT knowledge:
• A Guide to Proper RA Completion (a brochure provided by Sedgwick)
• Toyota Product Engagement online and instructor-led training for Rent a Toyota certification
For further support, each of the ten TMNA Regions and two Private Distributors (Regions/
PDs) have a designated RT Manager who will support your RT operations and help you achieve the full benefit of the program.
Section 2 – RT Administration
Vehicle Documentation
Registration
When a newly purchased RT vehicle arrives on the lot, the dealer must register the vehicle immediately. The date of sale listed should be the date the dealer places the vehicle into rental service. The documents should show TMCC as the first lienholder, using this address:
Notes:
• This PO Box is different from those used for lease, retail and commercial lines.
• If proof of insurance is required for vehicle registration, contact Anna Bendgen at Sedgwick.
Title
The dealer is responsible for ensuring the Certificates of Title are forwarded to TMCC in Atlanta, GA, for custody. Some states provide a certificate or an alternative document in lieu of a paper title. In Electronic Title (ELT) or “Title Holding” states, RT dealers should use their usual TFS retail sales lienholder code(s). The DMV will allow only one (1) ELT ID or ELT code for each division of a company, such as Toyota and Lexus. The code assigned to Toyota is used for all Toyota lease, retail and RT vehicle registrations. This records the electronic lien with the retail PO Box below:
When the electronic record is received, it is matched to the appropriate product line.
Never send the Manufacturer Statements of Origin (MSOs).
Lienholder codes vary from state to state and incorrect data may result in registration delays. To obtain a state specific lienholder code, please contact TFS at (469) 486-5500 or [email protected].
Insurance ID Cards
Insurance ID cards offer proof of automobile liability insurance to satisfy state vehicle licensing requirements. The ID card should be kept in the glove compartment of the vehicle, unless the card includes specific instructions to the contrary. ID cards are valid for a one year period only.
Toyota Motor Credit Corporation
PO Box 105386 Atlanta, GA 30348
To order additional insurance ID cards:
• Dealers located in New York, New Jersey and Nevada: email fee.chan@tmamerica.
com or [email protected]
• Dealers located in Kansas and all other states: email [email protected] with a cc: to [email protected]
Accident Report Guides
To facilitate the prompt and efficient reporting of any incidents by a rental customer, you should be sure an accident report guide is kept in the glove compartment of each RT vehicle.
The guides can be ordered at no charge through the Toyota Material Distribution Center (MDC) via Dealer Daily. The following part numbers should be used:
• 00635-ACDNT-FORM RT Automobile Accident Report Guide Form (8861)
• 00635-ACDNT-ENVLP RT Automobile Accident Report Envelope
Vehicle Maintenance
Pre-Delivery Service
For TMNA Regions, RT vehicle Pre-Delivery Service (PDS) is not generally completed at the port. The dealer is responsible for ensuring that PDS is complete before delivering any RT vehicle to a rental customer. (Some exceptions may apply depending on the timing
of the category transfers.) Please note that:
• RT units are eligible for manual PDS claim entry via CPS.
• Labor times per vehicle will pre-populate (as detailed in the flat rate manual or TIS).
• In the case of an E to J transfer, the dealer will be debited for the retail PDS and credited for the RT PDS. If the RT PDS credit is not processed, the dealer can manually submit a warranty claim to request reimbursement.
Periodic Maintenance
The dealer should perform periodic maintenance on each RT vehicle to keep the vehicle in good working order and maintain the vehicle’s appearance. The dealer is responsible for all maintenance expenses other than items reimbursable under Toyota Warranty Policies and Procedures. The RT vehicle should be treated as a privately owned vehicle for Warranty Policies and Procedures purposes.
RT vehicles become part of the dealership’s sales credit statistic that is used by Parts and Service in warranty administration and expense measurement.
ACCIDENT DIAGRAM Use below to diagram the accident.
The following questions should help you complete the diagram.
�On which side of the street were you?
�Which way was the other car going?
�Intersection, curb or in traffic lane(s)?
�Were there any (stop) signs or signals?
�How many lanes were there?
WHAT TO DO WHEN AN ACCIDENT HAPPENS Stop. Determine extent of injuries and/or damage.
Obtain medical help if needed.
Call the police if warranted or if required by State or Local laws.
Do not admit fault. Discuss the facts or give statements only to the police or your Dealer representative.
TELEPHONE YOUR TOYOTA DEALER RENTAL DEPARTMENT IMMEDI- ATELY AND REPORT THE ACCIDENT, EVEN IF:
� it isn’t serious
� it wasn’t your fault
� you don’t have all the facts Have the vehicle license number, mileage, and vehicle serial number available.
A U T O M O B I L E A C C I D E N T R E P O R T G U I D E
Keep this guide in your glove compartment and available for immediate reference in case you have an accident. Use it at the scene to record the essential details of the accident.
00635-ACDNT-FORM RT 8861
Rent a Toyota Insurance Partners
Rent a Toyota’s dedicated insurance package is a comprehensive program to reduce risk and minimize loss. The program is underwritten by Tokio Marine & Nichido Fire Insurance Co., Ltd. (U.S. Branch) and managed by Sedgwick Claims Management Services, Inc. (Sedgwick). Once a claim is settled, the right of recovery is transferred to Sedgwick who then begins subrogation activities.
Subrogation
Subrogation is a legal term that refers to the substitution of one person or creditor for another. In terms of RT insurance, when a dealer reports a claim to Sedgwick and the loss exceeds the dealership’s deductible, claim resolution and recovery (or subrogation) services are provided by Sedgwick. Sedgwick will take over all claim-related
responsibilities, including investigating the claim, applying a coverage decision and, if settlement is issued, pursuing subrogation against the responsible party. Subrogation may be resolved through negotiation, arbitration or legal action. Throughout the
subrogation process, the dealer will receive pro-rated shares of the deductible based on the progress of recovery - meaning the dealer will receive a share of the recovered monies.
Claim subrogation saves the dealer a tremendous amount of time and effort. The recovery process can take months or even years. But during this time the dealer’s only responsibility is to cooperate with Sedgwick and follow RT Policies and Procedures.
Note: If a loss is less than the deductible amount, responsibility is not subrogated to Sedgwick. The dealer is responsible for that portion of the loss that cannot be collected from the customer or other
responsible parties.
Rent a Toyota Insurance Coverage
Participation in the program is a requirement for all dealers and the $59 monthly premium is built into the monthly finance rate for each vehicle.
RT insurance coverage and premium charges begin:
• On the “in-service” date, which is five days after the invoice date.
Insurance coverage and charges stop:
• At 11:59 p.m. the day the vehicle loan payoff amount is processed by the Region/PD or TFS, or
• If the vehicle is repossessed by the Region/PD or TFS, or
• Upon termination of the RT System Participation Agreement or the Toyota Dealer Agreement.
Primary Coverage
The RT insurance program provides “primary coverage” which means that Sedgwick will settle valid claims immediately and directly based on the published coverage levels regardless of whether other policies or coverages exist. Sedgwick will then pursue recovery from the renter’s insurer (or the renter directly).
The primary insurance program consists of a series of policies designed to provide coverage for the renter, the dealer, and Toyota including:
• Liability coverage to the financial responsibility or compulsory liability limits for all personal injury or third-party property damage while the vehicle is rented to a rental customer.
• Coverage for damage to the rental vehicle.
This coverage is on a primary basis, except for rental transactions conducted in Florida on the RT 2020 FL rental agreement, which includes language in the remarks section that makes the customer’s liability insurance primary.
Excess Coverage
The RT insurance program also provides “excess coverage” which provides additional protection for the dealer and Toyota when a claim exceeds the primary coverage limits.
However, excess coverage does not protect the rental customer so it will not appear on any insurance-related information provided to the customer.
RT dealers are encouraged to review their own insurance requirements with respect to umbrella coverage and consider the local laws applicable to the state and municipality in which the rental vehicle will be operated. Where the law requires different coverages, such coverages, including “No Fault,” are provided at minimum required limits.
Insurance Coverage Limits and Deductibles
Coverage Provided Limit Or Deductible
Collision $1,000 Deductible per Vehicle
Collision – w/ CDW $2,000 Deductible per Vehicle
Collision – Employee Loss $2,000 Deductible per Vehicle
Comprehensive – Theft $1,500 Deductible per Vehicle
Comprehensive – Theft – w/ CDW $2,000 Deductible per Vehicle Comprehensive – Theft –
Employee Loss $2,000 Deductible per Vehicle
Comprehensive – Conversion $1,500 Deductible per Vehicle
Comprehensive – Conversion –
Employee Loss $2,000 Deductible per Vehicle
Comprehensive – Glass/Repaired $0 Deductible per Vehicle Comprehensive – Glass/Replaced (1) $1,000 Deductible per Vehicle Comprehensive – Glass/Replaced
w/ CDW (1) $2,000 Deductible per Vehicle
Comprehensive – Glass/Replaced (1) –
Employee Loss $2,000 Deductible per Vehicle
Comprehensive – Fire $0 Deductible per Vehicle
Comprehensive – Lightning $0 Deductible per Vehicle
Comprehensive – All Other Perils $1,000 Deductible per Vehicle Comprehensive – All Other Perils w/ CDW $2,000 Deductible per Vehicle Comprehensive – All Other Perils –
Employee Loss $2,000 Deductible per Vehicle
Comprehensive – Catastrophe (2) $500 Deductible per Vehicle
($10,000) Maximum per Loss/
Occurrence ($10,000 if due to hail)
Comprehensive – Catastrophe –
Employee Loss $2,000 Deductible per Vehicle
Liability – Bodily Injury Per Person Per State Minimum Financial Responsibility Limit Liability – Bodily Injury Per Accident Per State Minimum Financial Responsibility Limit Liability – Property Damage Per State Minimum Financial Responsibility Limit
Uninsured Motorists (UM) If State
Mandated Minimum Limits Afforded
Underinsured Motorists (UIM) If State
Mandated Minimum Limits Afforded
Personal Injury Protection (PIP) If State
Mandated Minimum Limits Afforded
(1) Glass replacement carries a $0 deductible in KY, FL, MA and SC.
(2) Catastrophic losses are separated by “On Rent” damage and “On Lot” damage:
• On Rent: Damage occurs when the vehicle is off the dealership lot under a completed RT rental agreement.
• On Lot: Damage occurs when the vehicle is on the dealership lot.
On Rent damage will be addressed under individual comprehensive claims with an applicable $1,000 deductible per claim per vehicle.
Insurance Coverage Definitions
Coverage Name Description
Collision Loss caused to an RT vehicle by collision with another object or loss caused by an RT vehicle’s overturn.
Collision Damage Waiver (CDW)
A contractual agreement whereby a rental company agrees, for a fee, to waive all claims against the customer for damage or loss related to the rented vehicle.
(See details under Collision Damage Waiver.)
Comprehensive
Loss to or of an RT vehicle for any cause other than collision with another object or the RT vehicle’s overturn (i.e., loss caused by fire, lightning, vandalism, theft, conversion, a catastrophic event or other comprehensive perils).
Conversion
A type of theft wherein the renter obtains the vehicle through legal means, then uses the vehicle in
unauthorized ways.
(See details under Conversion.)
Catastrophe A loss caused by hail, windstorm, earthquake or flood.
Liability – Bodily Injury Bodily injury for any person(s) resulting from an accident involving an RT vehicle.
Liability – Property
Damage Damage to another’s property resulting from an accident involving an RT vehicle.
Minimum Financial Responsibility (MFR)
Minimum requirements for liability insurance, establish by individual states.
(See details under Minimum Financial Responsibility.) Uninsured Motorists
(UM)
UM provides coverage in the event that an accident occurs with an at-fault uninsured motorist (i.e., the at-fault
motorist does not have liability insurance).
Underinsured Motorists (UIM)
UIM provides coverage in the event that an accident occurs with an at-fault motorist who has insufficient liability insurance (i.e., the at-fault motorist has enough liability insurance to meet the state’s Minimum Financial Responsibility requirements, but not enough to cover the full loss).
Personal Injury Protection (PIP)
PIP is first-party no-fault coverage which pays within
specified limits for wage loss, medical, hospital and funeral expenses of an insured.
Collision Damage Waiver (CDW)
Collision Damage Waiver (CDW) is not insurance; it is a contractual agreement whereby a rental company agrees, for a fee, to waive all claims against the customer for damage or loss related to the rented vehicle during the term of the rental agreement.
RT does not recommend the sale of CDW. If the dealer does pursue this option, the dealer is responsible for knowing and following all applicable state laws including pricing restriction, disclosure requirements, signage, etc.
To offer CDW, the dealer must:
• Complete the CDW Overview offered at http://www.taragraphicsinc.com
• Submit the completed “CDW Dealer Signature Agreement” to Tara Graphics
• Order the RT 2020 CDW Rental Agreement form from Tara Graphics, which is preprinted to comply with applicable state law requirements on CDW notices contained on rental agreements
• Offer the waiver and provide the proper disclosures (both written and verbal) to all customers.
• Allow the customer to decide whether to accept the CDW offer.
Note:
• If the customer chooses CDW, the dealer’s comprehensive and collision deductibles increase to $2,000 for each claim/loss.
• Using the RT Rental Agreement preprinted for a particular state may not satisfy all applicable local laws and regulations concerning CDW sales and notices. Separate CDW agreements or notices posted in the dealership may be required. Check your state law for current requirements.
Conversion
Conversion is a specific kind of theft. Conversion occurs when a customer obtains possession of the vehicle legally, then uses the vehicle in an unauthorized way for their own benefit, such as selling the vehicle or failing to return the vehicle to the rental location.
A vehicle is considered converted if:
• It is not returned by the rental customer on the date scheduled.
• It is abandoned by the driver/customer without notification to the dealer.
• It has to be repossessed from the driver/customer by the dealer, the police or any auto recovery agency.
A vehicle is not considered converted if the driver/customer:
• Reports it as disabled due to an accident.
• Returns it on their own accord.
• Reports it to have been stolen.
Handling Potential Conversions
To maintain solid legal standing in the event of a conversion, it is critical to follow-up on overdue rentals on a daily basis. This follow-up and any subsequent contact with the renter must be documented. Maintain a log detailing:
• The dates and times that follow up calls were made.
• Whether a message was left or if you spoke with the renter directly or to another party.
• Document your demand for the return of the vehicle.
• Detail any agreements that were made (e.g., new Due Date, etc.)
If the renter does not return your vehicle as a result of your calls and demands, you will eventually need to send a certified letter to the renter at their last known address demanding the return of the vehicle. The letter must:
• Provide the renter with a “reasonable” time frame under which to return the vehicle.
• Indicate that the renter must personally return the vehicle to the dealership (i.e., do not send the vehicle with someone else).
• State that the vehicle and keys must be returned to a dealership employee during normal business hours (i.e., vehicle cannot be dropped at dealership after-hours).
Once you receive mail confirmation that the letter was delivered and the return date quoted in your letter has passed, you can seek the assistance of local law enforcement to file a Theft Report.
Note: When pursuing the return of your vehicle, be sure to review and comply with any applicable conversion laws in your state.
Minimum Financial Responsibility (MFR)
49 states (all except Hawaii) have compulsory Minimum Financial Responsibility (MFR) requirements for liability insurance. The Toyota Order Planning System (TOPS) website located at TRAC.Toyota.com provides a chart of the current MFR limits for each state.
Split Limits
MFR requirements are generally defined in terms of split limits. For example, if the chart shows “25/50/10,” the law requires that the policy cover each accident with at least:
• $25,000 for bodily injury for each person
• $50,000 for all bodily injury
• $10,000 for property damage Combined Single Limit (CSL)
Some states also allow a Combined Single Limit (CSL) policy to fulfill the MFR
requirement. For example, if a state requires “15/30/10 or 40,” the law provides that a policy with a CSL of at least $40,000 will also satisfy the requirement. A CSL of $40,000 means that the insurance will pay up to $40,000 for all bodily injury and property damage arising out of each accident.
Note: Current state requirements can be verified by contacting your local DMV office.
Loss Settlement Procedures
The insurance settlement procedures for physical damage, theft and conversion losses are as follows:
Partial Losses
A RT vehicle is considered a partial loss is when damage is estimated at less than 75% of the RT vehicle’s pay-off amount. When a partial loss vehicle is repaired:
• All parts to be repaired or replaced require prior approval by the Sedgwick handling representative.
• All reimbursement is contingent on the dealer repairing the damage or loss forming the basis for the claim, and the reimbursement is subject to the applicable deductible.