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Risk Management




Bryan K. Heckle

Richard Bolyard
Loss Control and Claims Specialist

Automobile Liability and Physical Damage

Automobile Liability

G.S. 58-31-50. Liability insurance required for state-owned vehicles. Every department, agency or institution of the State shall acquire motor vehicle liability insurance on all state-owned motor vehicles under its control. (1959, c. 1248; 1983, c. 717, s. 10.)

The State self-insures predictable losses and purchases insurance for catastrophic losses. Coverage is provided for property damage and bodily injury to others (non-State employees). The liability insurance program is administered by Travelers Insurance Company on any automobile licensed to or operated by the State or its employees. Such coverage is deemed adequate by the State and State agencies are not authorized to purchase higher limits for individual employees.

The automobile liability insurance coverage limit is $1,000,000 for bodily injury/property damage ($10,000,000 aggregate per accident). The coverage is automatic and state agencies complete a self audit at the beginning of the fiscal year using the Auto Web

Auto Physical Damage

Physical Damage insurance provides collision and comprehensive coverage for scheduled vehicles. State Agencies must individually schedule vehicles on the Auto Physical Damage policy for the desired coverage using the Auto Web

The Department of Insurance, Risk Management Division should be contacted for additional information 919-647-0000.

Personal Vehicle Use on State Business

The following is in response to frequently asked questions on personal vehicle use:

  1. When employees use their personal automobile for State business, the employee's insurance provides the primary coverage. However, the State's liability insurance may provide excess liability coverage after all valid and collectible insurance has been exhausted.
  2. The State's automobile insurance will not reimburse individuals for deductibles under their private insurance.
  3. Individuals who use their personal vehicle for State business on a routine basis should report the same to their insurance company for rating purposes.
  4. Any claims involving liability, comprehensive or collision should be reported to the driver's insurance carrier. Claims would be settled between the insurance carrier and the individual. The State insurance would only be involved as outlined in Number 1 above.

Note: The State reimbursement rate for personal use of private automobiles has an insurance cost allocated in the rate.