Rental Car Agreement #5 Now in Effect

Apr 8, 2024 | Partner News

Car rentalThe Defense Travel Management Office (DTMO) announces the release of U.S. Government Rental Car Agreement #5, which went into effect April 1, 2024, and incorporates new cost savings provisions.

Big News: GARS is being eliminated.

Agreement #5 brings the elimination of the $5 per day Government Administrative Rate Supplement (GARS). When picking up rental vehicles booked under the new Agreement, travelers should look for their Department or agency’s name on the agreement to ensure their reservation falls under the Agreement.

Travelers can expect all the same benefits of the previous agreement, but with 30% lower maximum allowable rates, including:

  • No fee for Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW)
  • No additional fee for liability coverage
  • If size/class of vehicle reserved is not available, rental company must offer a vehicle of equal or greater car class at no additional cost 
  • Unlimited mileage (except for one-way rentals)
  • No underage driver fee for travelers 21 or older
  • No fee for additional authorized drivers
  • No blackout or minimum rental periods

In addition to the elimination of GARS, additional changes include:

  • Inclusion of loss and liability coverage
  • Inclusion of 10 to 15 Passenger vans when rented by drivers 25 years of age and older. 
  • Underage driver fees for renters ages 18 to 20 – MUST be listed on the rental agreement, even as an additional driver
  • Cost avoidance through elimination of GARS and a 30% reduction in CONUS maximum rates 
  • Supports OMB Catalyzing Sustainable Travel memo by adding electric vehicle (EV) categories in CONUS 

Travelers should continue to book vehicles under the U.S. Government Rental Car Agreement through online booking tools (Defense Travel System, E-gov Travel Services, ConcurGov) and contracted Travel Management Companies.

Travelers must bear in mind that policy prohibits reimbursement for optional insurance products (such as Loss Damage Waiver, Collision Damage Waiver, Supplemental Liability Insurance, etc.) unless required by foreign law, so travelers should decline these options or expect to pay out-of-pocket.

Reservations booked prior to April 1, 2024 will remain under Agreement #4 and require no action. These reservations may still incur the GARS fee, which will remain a reimbursable expense for reservations booked through March 31, 2024.

For additional information on the U.S. Government Rental Car Agreement #5, see the Rental Car webpage or find answers to frequently asked questions.

Travel Managers: download the Travel Manager Communication Toolkit.

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