What it does

Rental systems allow one-way rentals: a customer rents from another location or company and drops the vehicle at the insured's location. CA 20 12 adds an exclusion to Covered Autos Liability: no coverage for the owner or rentee of a "rent-it-there/leave-it-here auto" not owned by the named insured. The endorsement defines that term as an auto a rentee rents from someone other than the insured and leaves with the insured.

Who needs it (why it appears)

Franchised and independent rental agencies that handle other operators' vehicles after one-way trips. The insured's policy may still cover its own liability while it moves or holds the vehicle, but it will not stand in for the vehicle's owner or the customer who rented it elsewhere.

Quoting notes

Ask how many one-way drop-offs the agency receives, how quickly they are returned to the owning location, and whether the rental system's master policy covers vehicles in transit between locations.