Vehicle Insurance

The State of Maryland is self-insured. Each year the University provides the State with an inventory of vehicles to be insured. Institutions are required to conduct vehicle-related insurance activities in accordance with current insurance policies and procedures.

Accidents must be reported within 24 hours to the Institutional Insurance Coordinator. Every University vehicle will be supplied with an Accident Packet, which will include an accident worksheet. Each Institution will develop an Accident Packet to meet its specific needs.

The following is a summary of the current insurance coverage for State vehicles. The Institutional owner of the University vehicle (i.e., the department) is responsible for the first $1,000 of loss (liability and/or physical damage) associated with any single occurrence. This summary is intended as a general guide; Institutional Insurance Coordinators can provide additional information related to specific situations.

STATE VEHICLES

1. Liability (Damage to Other Vehicles, Property, and People)

   For accidents that occur within the State of Maryland, there is a $200,000 limit per claimant for a single incident or occurrence under the Tort Claims Act. The liability limit varies for accidents that occur outside the State of Maryland. Sovereign immunity is invoked for claims against the State and the employee driver for amounts above $200,000.

   The State does not waive its immunity for punitive damages, interest before judgment, combatant activities of the State Militia, and tortious acts of employees not within the scope of their duties or if the injury is made with malice, or gross negligence, or due to unlawful acts.

2. Physical Damage (Damage to the University Vehicle)

   Reimbursement is on an Actual Cash Value basis as determined by the State Treasurer's Office. Differences between the actual value and the replacement cost of the vehicle must be satisfied by the State agency owning the vehicle.

3. Medical Payments and Personal Injury Protection (PIP)

   Compensation for injury to employees is provided through the Workers' Compensation Program. The State does not provide medical payments or PIP coverage. An injured employee may be able to collect PIP benefits (+/- $2,500) by filing a claim with his/her own personal automobile insurance company.

4. Towing and Storage

   The State provides coverage for towing and storage that are required due to a vehicle accident, subject to the $1,000 deductible per occurrence.

5. Uninsured and Underinsured Protection

   The State does not provide protection for either of these types of coverage. The employee may file and receive benefits under his/her automobile insurance policy.

6. Rental Car Coverage

   The State does not provide reimbursement for car rental.

STATE VEHICLES - OUT-OF-STATE AND FOREIGN INSURANCE PROTECTION

1. Liability (Damage to Other Vehicles, Property, and People)

   Liability coverage is insured by the State Insurance Trust Fund. State vehicles driven to other states within the United States are covered. State vehicles being driven to foreign countries must notify the Underwriting Section, Insurance Division, State Treasurer's Office. Notification should include vehicle year, make, model, VIN (Vehicle Identification Number), license plate, driver, and dates of travel. Certificates of coverage evidencing $300,000 are required to cross the border.

2. Physical Damage (Damage to the University Vehicle)

   Reimbursement is on an Actual Cash Value basis as determined by the State Treasurer's Office. Differences between the actual value and the replacement cost of the vehicle must be satisfied by the State agency owning the vehicle.

3.  

NON-OWNED VEHICLES

1. Under Contract

   Under Contract Vehicles include those vehicles used by Maryland State agencies but owned by outside interests such as U.S. Government, Counties, and Municipalities. The user should get a Certificate of Insurance from the Agency owning the vehicle. There may be cases when both the vehicle owner's coverage and the State coverage will apply. The coverage provided is the same as described above.

2. Leased Vehicles

   Leased Vehicles include those vehicles that are owned by others and leased (rented) to the State on a long-term basis (usually 30 days or more). In virtually every situation, the lessor will require commercial insurance with minimum limits. Prior to entering into an agreement, the State of Maryland Department of Budget and Management should be contacted. Negotiation with the lessor concerning the acceptance of State coverage is possible. If favorable negotiation is not possible, insurance must be purchased and charged to the State agency.

3. Rented Vehicles

   Rented Vehicles include those vehicles owned by others and rented to the State on a short-term basis (usually a few days).

   The State provides the same protection as described in STATE VEHICLES - LIABILITY regardless of whether the vehicle is rented within or outside the State.

   The rental company requires that the renter (State agency or employee) be responsible for most accidental damage to the vehicle. This provision is included in the rental contract. In order to waive this provision and make the rental company responsible, an addendum is required. This addendum is called "Collision Damage Waiver." The State has elected to provide this coverage; therefore, employees should not sign or agree to the "Collision Damage Waiver." When signing the rental agreement, employees should read all of the provisions and include their name, department name, and "State of Maryland."

4. Privately Owned Vehicles Used on State Business

   The State does not provide liability coverage for privately owned vehicles driven by authorized persons on State business. The State does not provide medical payments or PIP coverage. An injured employee may be able to collect PIP benefits (+/- $2,500) by filing a claim with his/her own personal automobile insurance company.

   Always notify both the Institutional Insurance Coordinator and your family automobile insurance agent of all incidents or accidents. Failure to notify both could jeopardize your legal status in related claims and lawsuits.

   Currently, there is no liability protection provided by the State for claims resulting from the operation of a privately owned vehicle by a State employee while on State business outside the borders of the State of Maryland. You are compensated on a mileage basis - this compensation considers insurance expense. Your personal automobile insurance policy may provide coverage. If the claim is filed in Maryland, the Tort Claims Act may apply (this action is unusual). The State does not provide Physical Damage protection for privately owned vehicles. The employee's automobile insurance policy must provide coverage.