Motor Vehicle Insurance and Risk Management
REG 07.35.3
Insurance and Risk Management
Authority: Vice Chancellor for Finance and Business
History: First Issued: April 8, 2002.
Contact Info: Insurance and Risk Management Director (919-515-6124)
1. Purpose
The purpose of this statement is to provide guidance on insurance for University-owned
self-propelled motor vehicles as well as motor vehicles rented and leased
for official University business.
1.1. Applicable Motor Vehicle Rules and Requirements
North Carolina General Statutes, (GS 58-194.1 ), requires all state- owned
motorized vehicles to be insured for liability coverage.
1.1.1. Official Use Only
University-owned vehicles are to be driven only by authorized University
employees within the scope of their jobs for official University business
and as outlined within the Motor Fleet Management Guidelines. Exceptions
to this rule are Federal employees as stated below.
Authorized Person - An authorized employee is the employee who has permission
from the dean, director or department head to drive a University-owned
vehicle to carry out the official business of the University within the
scope of the employee's job and within Motor Fleet Management guidelines.
Guidelines published in the Motor Fleet Management Handbook issued January
1994, state that state-owned vehicles are to be driven only by state employees
and used only for official state business. All vehicles that are "owned" by the University are state-owned vehicles.
For the purposes of this rule, a state employee is any individual working
for the State of North Carolina who receives a state check for wages or
salary. Persons not employed by the state may accompany state employees
who are driving state-owned vehicles when they have an interest in the
purpose of the trip and their presence is related to state business.
Students may be passengers in cars to attend activities officially sanctioned
by the University. However, students, visiting staff and faculty with
or without appointments, adjunct and emeritus professors, volunteers and
other people not employed by the state are not allowed to drive state-owned
vehicles.
Federal employees working with the University, such as USDA, USDI, USAF,
and USN must make requests for Federal vehicles from the local Federal
Motor Pool. If a Federal vehicle is not immediately available, then a
Federal employee contracted to do state business may be allowed to drive
a state vehicle until a Federal Motor Pool vehicle is available.
1.1.2. Accidents Caused By Others
An accident report must be filed with Insurance and Risk Management on
all auto accidents involving state-owned vehicles which are caused by
persons not employed by the State driving privately owned vehicles. The
NC State department involved in the accident may work with the other driver's
insurance company to recover property damages and/or medical expenses,
or the department may request assistance through Insurance and Risk Management
to settle the claim. Requests for assistance should be made in writing
providing Insurance and Risk Management with the police report and other
necessary information on the other driver.
1.1.3. Use of Personal Vehicle for University Business
If an accident occurs while a personal vehicle is being used for official
University business, the employee's auto liability coverage is considered
the primary coverage. If necessary, the State's coverage may supplement
the employee's personal policy as excess coverage.
1.1.4. Use of Personal Vehicles by Authorized Volunteers
If an accident occurs while the personal vehicle of an authorized volunteer
is being used for official University business, the volunteer's liability
coverage is considered the primary coverage. If the volunteer is found
to be an authorized agent of the State on official University business,
the State's coverage may also be applicable.
1.1.5. Vehicle Liability Coverage Outside of the United States
Employees traveling by motor vehicle outside the United States should
check with Insurance and Risk Management regarding vehicle liability insurance
requirements, i.e. Canada, Mexico and Europe.
1.1.6. Comprehensive and Collision Insurance for University-Owned Vehicles
If comprehensive and/or collision insurance is desired for University-owned
vehicles, departments must contact Insurance and Risk Management. This
coverage is procured separately; the department requesting the coverage
is responsible for the premium payment.
Except in cases where collision and/or comprehensive coverage is purchased
by individual departments at NC State, departmental budgets must bear
the cost of repairing or replacing University-owned vehicles damaged or
lost in accidents where the University employee is "at fault"
or "no fault" is established.
1.1.7. Two University-Owned Vehicles Involved In An Accident
If a departmental vehicle damages or is damaged by another state-owned
vehicle, Travelers coverage does not apply unless specific collision coverage
has been procured. Departments must work out repair or replacement costs
with the other department or agency.
Liability Insurance for Rental Cars Used for Official University Business
- University travelers renting a vehicle from an automobile rental company
are normally covered by the primary insurance procured by the rental company
for that purpose. University travelers should verify that liability insurance
does cover the rental vehicle through the rental car company. If a liability
claim exceeds the limits of coverage by the rental company or if there
is no liability coverage provided by the rental car company, the State's
coverage may be applicable.
1.1.8. Liability Insurance for Rental Cars Used for Official University Business
University travelers renting a vehicle from an automobile rental company
are normally covered by the primary insurance procured by the rental company
for that purpose. University travelers should verify that liability insurance
does cover the rental vehicle through the rental car company. If a liability
claim exceeds the limits of coverage by the rental company or if there
is no liability coverage provided by the rental car company, the State's
coverage may be applicable.
1.1.9. Collision and Comprehensive Insurance for Rental Cars
Normally, the rental car company's insurance provides collision and/or
comprehensive coverage for the rental car. Because rental car contracts
vary from company to company, travelers are encouraged to ask the rental
company for enough information to clearly understand the terms of the
rental contract, especially those which relate to insurance.
In many instances, travelers are given the option of accepting a "Collision
Damage Waiver" (CDW) for which they would pay a daily fee, usually
ranging from $12 to $25 per day. State policy does not allow reimbursement
of expenses such as "CDW" or similar items with one exception
for foreign countries which is explained on the next page. Instead, the
State has procured comprehensive and collision coverage for commercial
vehicles rented by employees for less than thirty (30) days in conjunction
with the conduct of official University business.
Coverage is provided in the United States, its possessions and Canada.
There is no coverage in other foreign countries. There is one exception
to the rule on the purchase of the "CDW." Because the Travelers'
coverage does not extend to most foreign countries, the State Budget Office
does allow reimbursement on the cost of the "CDW" when employees
are conducting official University business in the foreign countries not
covered by the policy.
REMEMBER: Comprehensive and collision insurance coverage is provided
free of charge for rentals/leases in the United States, its possessions
and territories and Canada for up to thirty days. If you anticipate renting
a vehicle for 30 days or more, or rent a vehicle valued over $25,000 even
for one day, you must contact Insurance and Risk Management for special
instructions on comprehensive and collision insurance. Under some circumstances,
coverage for these vehicles may involve a premium that will be charged
to the employee's department. Any Collision Damage Waiver (CDW) insurance
or Physical Damage Waiver (PDW) insurance purchased through the rental
agency within the United States, its territories or possessions and Canada
IS NOT reimbursed by the University.
1.1.10. Titles and Vehicle Registration
1.1.10a. Departments must forward all vehicle titles to Insurance and Risk
Management for safe keeping while the vehicle is owned by the University.
1.1.10b. When an untitled new or used self-propelled vehicle is purchased,
departments must complete Form IRM-05, Vehicle Inventory Addition.
1.1.10c. When self-propelled vehicles are disposed of or transferred, departments
must complete Form IRM-06, Vehicle Transfer and disposition Form.
1.1.10d. When self-propelled vehicles are badly damaged and not drivable,
vehicles MUST BE SURPLUSED. Departments cannot simply discard, throw
away, or junk any self-propelled vehicles.
1.1.11. Motor Vehicle Accident Reporting
1.1.11a. All motor vehicle accidents involving University-owned vehicles
and rental cars used for official university business must be reported
to the police, NC State Insurance and Risk Management, and the rental
car agency no matter how small the cost of damage or who is at fault.
1.1.11b. Accidents must be reported to the police and rental car agency immediately
and reported to Insurance and Risk Management by noon of the following
workday. If the accident occurs on a weekend or holiday, report the
accident to Insurance and Risk Management by noon on the following
workday. If the accident occurred off campus, the department whose
employee was involved in the accident is responsible for furnishing
Insurance and Risk Management with a copy of the police report.
1.1.11c. An accident reporting kit must be kept in each University-owned
vehicle and all drivers should be informed of this. The reporting
kits have been developed by Travelers Insurance Company, who administers
the blanket state insurance policy.
