The University’s automobile insurance is part of a master policy issued to “The State of North Carolina”. All University-owned vehicles, trailers and mobile equipment are covered under this policy. It is a retrospectively rated plan and  The Travelers Insurance Group provides our claims service. The policy term runs from July 1st to June 30th each year.

University-owned vehicles come under the jurisdiction of the North Carolina Department of Administration. Responsibility for establishing and administering vehicle operation regulations is assigned to their Motor Fleet Management division and their manual entitled Motor Fleet Management Regulations describes all policies and procedures related to the assignment and use of University-owned vehicles.

To be afforded coverage under the University's auto policy, only state employees should operate University-owned vehicles, vehicles leased from Motor Fleet Management or vehicles rented from private rental agencies for University use. And these vehicles must be operated in the scope of University employment. For purposes of vehicle assignment, a state employee is defined as "any individual working for the state of North Carolina for wages or salary".

Graduate and professional students can also operate University vehicles under the following two conditions:

• They meet the definition of "State Employee" as described above.

• They are enrolled in the University and their educational training requires the use of a state-owned vehicle and whose use of the state-owned vehicle is supervised and permitted by a University official.

Students and non-state employees may be passengers in University vehicles provided they are attending athletic events or other activities officially sanctioned by the University.

• Liability Coverage - Liability coverage pays for bodily injury or property damage for which you or the owner of the insured vehicle become legally responsible because of an auto accident.

• Collision Coverage - Collision coverage pays for loss to the insured's own vehicle caused by its collision with another vehicle, object or its upset. Collision coverage does not pay for bodily injury or property damage liability arising out of the collision.

• Comprehensive Coverage - Comprehensive coverage pays for loss to the insured's own vehicle caused by fire, theft, vandalism, falling objects, and various other perils other than a collision with another vehicle, object or its upset.

• Medical Payments Coverage - Medical Payments coverage provides reimbursement for the reasonable and customary medical costs of persons injured in an insured auto. This coverage applies regardless of fault.

• University Owned Vehicles - All currently owned or newly acquired University vehicles, trailers and mobile equipment are automatically insured for liability coverage. Liability coverage is automatically implemented or discontinued when a vehicle is acquired or disposed of by the University.

• Personal Vehicles – Personal vehicles operated by University employees, staff, and faculty are provided with excess liability coverage under this policy as long as it is being used solely in the scope of their University employment. This excess liability coverage does not become applicable until all primary liability coverage is exhausted or there is no primary liability coverage available. Collision and comprehensive insurance is not provided under the University's policy for personal vehicles.

• Rental Vehicles – Vehicles rented by University employees, staff, and faculty are provided with excess liability coverage under this policy as long as they are being used solely in the scope of their University employment. This excess liability coverage does not become applicable until all primary liability coverage is exhausted or there is no primary liability coverage available. Unlike University owned and personal vehicles, collision and comprehensive insurance is automatically provided for rental vehicles.

• Motor Fleet Management Vehicles - Vehicles leased from Motor Fleet Management are covered for liability under the State's master insurance policy while our monthly lease fee includes physical damage coverage. Therefore, departments do not need to consider purchasing additional insurance coverage.

• Foundation or Dealership Vehicles - Coverage under the State's insurance program is not afforded for vehicles provided to departments by foundations, automobile dealerships, or other sources not directly subject to the University. Insurance for these vehicles is to be obtained through the providing foundations or other non-University funding sources. However, Risk Management Services will assist you with obtaining the necessary coverage.

• Liability Coverage - For in-state accidents, the University's combined bodily injury and property damage limit per person per accident is $500,000 and the maximum coverage per accident is $5,000,000. For out-of-state accidents, the per person limit is increased to $1,000,000. Liability coverage is provided on an excess basis for rental or personal vehicles used for official University business. No deductible applies for liability coverage.

• Collision Coverage - Collision coverage is written on an "Actual Cash Value" basis, meaning it will pay the cost to repair the damage or the actual cash value of the vehicle which ever is less. The actual cash value of a vehicle is considered its fair market value based on comparable vehicles in the same geographic location. Collision coverage has a standard $100 deductible except for rental vehicles whereby the deductible is waived.

• Comprehensive Coverage - Comprehensive coverage is also written on an "Actual Cash Value" as described under Collision Coverage. However, the deductible is $50 except for rental vehicles whereby the deductible is waived.

• Medical Payments Coverage - Medical Payments coverage has a $5000 per occurrence limit for each occupant of the insured vehicle. No deductible applies.

The University's automobile policy restricts coverage to just the United States, its territories and Canada. Employees operating vehicles in Canada must provide proof of vehicle liability insurance. Contact Risk Management Services at least thirty days prior to departure for liability insurance verification documentation to be presented at the Canadian border and to carry on you throughout your travel in Canada.

If you operate or rent a vehicle in all other foreign countries, the University has no existing insurance policy in force. Departments should purchase insurance directly from the rental agency or from a local insurance agency. These expenses should be reimbursable.

Risk Management Services will assist you with arranging this foreign coverage. Employees are also encouraged to contact the US Embassy for the country you will visit. They will help you with the insurance requirements specific to that country. The US Department of State also provides useful travel warnings and Consular Information Sheets to assist you with your foreign vehicle use.

Liability insurance coverage is automatically provided for University-owned vehicles, trailers and mobile equipment. However, the optional collision, comprehensive or medical payments coverage is not provided unless you specifically request it. Requests for these coverages should be made to Risk Management Services. Your department will be charged an annual premium as described below if you decide to purchase this coverage.

Collision coverage pays for damage to your vehicle caused by its collision with another vehicle or object, regardless of fault. The deductible is $100 per vehicle. The annual collision premium depends on the original cost of the vehicle with annual charges typically ranging from $140 - $308.  Contact us for the exact rates.

Comprehensive coverage pays for loss to your vehicle caused by fire, theft, vandalism, animals, falling objects and various other perils other than a collision with another vehicle, object or its upset. The deductible is $50 per vehicle and the annual premium is $46 per vehicle.

Medical Payments coverage provides reimbursement for the reasonable medical costs of persons injured in this vehicle. This coverage applies regardless of fault. Medical Payments coverage has a $5000 per occurrence limit for each occupant of the vehicle and no deductible applies. The annual premium is $18 a vehicle.

Medical Payments coverage should only be considered for vehicles transporting guests or passengers not employed by the University. If a University employee is injured in an automobile accident during the scope of employment, workers' compensation benefits should apply.

When a new University vehicle is purchased, Risk Management Services will notify the custodial department of the optional insurance coverages available to them. The memo entitled Important Insurance Information Regarding Your New UNC Vehicle Purchase is sent to the custodian named on the Purchase Order.