Authority: Vice Chancellor for Finance and Administration
History: First Issued: April 8, 2002. Last Revised: July 14, 2020.
Contact Info: Insurance and Risk Management Director (919-515-6124)
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 58-50), requires all state- owned motorized vehicles to be insured for liability coverage.
1.2 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 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, as amended, require State-owned vehicles 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 wages or salary from the State. 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 who are employed by NC State and receive wages or salary are considered employees and may operate State vehicles for the purpose of performing duties within the scope of their employment. Non-employed students may be passengers in State vehicles 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 individuals 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.
1.3 Vehicle Insurance for Self-Propelled University-Owned Vehicles
1.3.1 Liability Insurance for University-Owned Vehicles
Insurance coverage is not automatically added when a new vehicle is acquired. All University-owned self-propelled vehicles must be entered into the eRIMS2 system by a departmental authorized user, in order to secure Liability coverage. eRIMS2 is accessed on the Insurance & Risk Management website.
1.3.2 Comprehensive and Collision Insurance for University-Owned Vehicles
Comprehensive and collision coverage is available for additional cost, which is the responsibility of the requesting department. It is the responsibility of the requesting departmental authorized user to add this coverage in the eRIMS2 System.
1.4 Titles and Vehicle Registration
1.4.1 Departments must provide all original self-propelled vehicle titles to Insurance & Risk Management while the vehicle is owned by the University. Vehicle registrations are kept in the vehicle.
1.4.2 When an untitled new or used self-propelled vehicle is purchased, departments must report the purchase using the process outlined on the Insurance & Risk Management website.
1.5 Transferring University-Owned Vehicles
1.5.1 When self-propelled University-owned vehicles are transferred to another University department, the department transferring initiates the transfer in the eRIMS2 System. The receiving department must update all vehicle information to fit their department in the eRIMS2 System.
1.5.2 When self-propelled University-owned vehicles are transferred to another state agency, departments must follow the surplus process outlined by Material Management. Departments may not give vehicles to other state agencies.
1.6 Surplus University-Owned Vehicles
Departments must surplus vehicles according to the NC State surplus process handled by Material Management. Surplus vehicles include any self-propelled vehicle not drivable or badly damaged; no longer needed by the university department to continue its operation. Material Management will obtain the original title from Insurance & Risk Management. Once the vehicle has been removed from NCSU’s property, the surplus disposition date must to be entered in the eRIMS2 System in order for insurance premiums and charges to be removed. Departments cannot simply discard, throw away, or junk any University-owned property.
2. Motor Vehicle Accident Reporting
All motor vehicle accidents involving University-owned vehicles must be investigated by law enforcement. Employees should not admit fault, liability or make any statement relative to guilt or responsibility. Employees should provide law enforcement with the facts related to the accident. Report all motor vehicle accidents involving state-owned vehicles immediately using the process outlined on the Insurance & Risk Management website.
2.1 Motor Vehicle Accident Caused by Others
For accidents involving an at-fault third party driver, the University department involved should attempt to work with the other driver or their insurance company to recover property damages and/or medical expenses. The department may request assistance from Insurance & Risk Management to settle the claim if direct efforts are unsuccessful.
2.2 Two University-Owned Vehicles Involved In an Accident
Accidents between State-owned vehicles must be reported using the process outlined on the Insurance & Risk Management website.
2.3 Employee Personal Vehicle Use for University Business
If an accident occurs while using a personal vehicle for official University business, the employee’s auto liability coverage is considered the primary coverage. The State’s vehicle liability insurance may provide excess liability coverage on a case-by-case basis after all valid and collectible insurance has been exhausted. The State’s automobile insurance will not reimburse individuals for deductibles under their private insurance. Individuals who use their personal vehicle for State business on a routine basis should report the same to their insurance company for rating purposes. Any claims involving liability, comprehensive or collision should be reported to the driver’s insurance carrier.
2.4 Volunteer Personal Vehicle Use for University Business
If an accident occurs while an authorized volunteer is using a personal vehicle for official University business, the volunteer’s liability coverage is considered the primary coverage. If it is determined the volunteer is an authorized agent of the State on official University business, the State’s coverage may also be applicable. These situations are fact-specific and determined on a case-by-case basis.
3. Insurance for Rental Cars Used for Official University Business
3.1 The State of North Carolina recommends using the State Term Contract when renting vehicles in the U.S., Puerto Rico or District of Columbia for official University business.
Passenger vehicles are covered up to a total loss regarding physical damage as well as third party damage claims. Commercial trucks also include insurance coverage when renting through the State Term Contract using the Enterprise business account. There is no coverage for 15 passenger vans.
When reserving a rental vehicle for international travel, employees must confirm rates include loss damage waiver, theft waiver and minimum required third party liability coverage.
3.2 Rental vehicles must be insured through the State vehicle insurance policy if they fall under the categories below. Renters must submit a rental vehicle certificate of insurance by completing the appropriate form on the Insurance & Risk Management website.
- rented for more than 30 days;
- private passenger vehicle value is greater than $40,000;
- truck value over $60,000;
- Gross Vehicle Weight (GVW) is over 10,000 pounds.
3.3 All motor vehicle accidents involving a State Term Contract Rental Vehicle must be investigated by law enforcement. The renter must also contact the rental car company using the process outlined on the Insurance & Risk Management website.