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Vehicle Insurance Information
Please Contact D/A Legal Office at 785-296-6000
for additional information on general legal issues
Please Contact D/A Div. of Purchases at 785-296-3122 or email
for additional information on operational/billing issues
INSURANCE:
GENERAL DESCRIPTION & PROCESS
Summary of Insurance Coverage
State-owned vehicles. As required by K.S.A. 74-4707, the State of Kansas
carries liability insurance coverage for state-owned vehicles. The liability
insurance carrier for the statewide vehicle liability contract is currently
Berkshire Hathaway Homestate Insurance Company, 1-800-488-2930. Because K.S.A. 74-4702 prohibits
state agencies from purchasing insurance on any state-owned property unless
otherwise expressly authorized by law, the State does not carry comprehensive
coverage for collision. Therefore, in the event an agency’s vehicle is
damaged, agencies will need to fund repair and replacement costs.
Privately owned vehicles. As with state-owned and rental vehicles, the
statewide, liability-only insurance policy provides coverage for privately owned
vehicles used on state business. Employees will remain responsible for providing
any comprehensive coverage for their personal vehicle that they believe is
appropriate to their circumstances. Therefore, employees need to be familiar
with their insurer’s policies about business use, particularly if they
frequently use their personal vehicles for state business travel. Insurers vary
considerably in how occasional business use of covered vehicles is treated
(e.g., what constitutes “occasional” use) and whether or not a rider or
other change in coverage is necessary. Therefore, it would be prudent for
employees to check with their agent about this issue. It should also be noted
that the mileage reimbursement rate is intended to include the costs of
insurance coverage.
Hertz vehicles.
The statewide, liability-only insurance policy also covers rented or leased
vehicles. At this time, the motor vehicle rental contract with Hertz
requires that agencies pay for rentals with a BTA (Business Travel Account)
card. The BTA cards include a collision damage waiver provision. Therefore,
state agencies will have both liability coverage and collision damage waiver
protection when an Hertz rental vehicle is used. State employees will not
be required to show proof of personal insurance when renting vehicles from
Hertz for state business use and should decline the collision damage waiver
coverage on the Hertz rental agreement. The State of Kansas will not pay
for other optional products offered by the contractor, such as supplemental
liability protection.
INSURANCE
FAQ’S
Q: HOW WILL AGENCIES BE BILLED FOR LIABILITY INSURANCE? BY CENTRAL MOTOR
POOL OR BY THE CARRIER?
A: Agencies taking ownership of motor pool vehicles will be responsible
for utilizing the state’s liability insurance contract to acquire the
appropriate automobile liability insurance coverage.
Q: WILL EMPLOYEES WHO DRIVE PERSONAL VEHICLES ON STATE BUSINESS NEED TO
TELL THEIR INSURER THAT THEY ARE USING THE VEHICLE FOR BUSINESS PURPOSES?
A: As many state employees are already using personal vehicles for travel
on state business, this is not a new issue. However, it may be helpful for state
agencies to remind their employees that they need to be familiar with their
insurer’s policies about business use, particularly if they frequently use
their personal vehicles for state business travel. Insurers vary considerably in
how occasional business use of covered vehicles is treated (e.g., what
constitutes “occasional” use) and whether or not a rider or other change in
coverage is necessary. Therefore, it would be prudent for employees to check
with their agent about this issue. It should also be noted that the mileage
reimbursement rate is intended to include the costs of insurance coverage.
Q: DOES THE STATE PAY FOR COLLISION DAMAGE WAIVERS OR SUPPLEMENTAL
LIABLITY PROTECTION OFFERED FOR RENTAL CARS?
A: The current contract with Hertz provides that cardless Business
Travel Accounts (BTA’s) are to be used to pay for Hertz rental vehicles.
State agencies will automatically be provided with collision damage waiver
protection when using the BTA to rent an Hertz rental vehicle. The State
will not pay for supplemental liability protection.
Q: IS IT CORRECT THAT THERE IS A STATUTE THAT LIMITS THE STATE’S
INSURANCE COVERAGE FOR VEHICLES TO LIABILITY COVERAGE ONLY?
A: K.S.A. 74-4702 does limit us to liability coverage only, and
therefore, a statutory amendment would be required to provide agencies with the
option of obtaining comprehensive coverage for vehicles.
Q: WILL AGENCIES STILL BE REQUIRED TO REPORT ACCIDENTS INVOLVING
STATE-OWNED OR STATE-OPERATED VEHICLES TO CENTRAL MOTOR POOL AND TO WORK WITH
THEM ON INSURANCE CLAIMS?
A: No reporting will be necessary to the Department of Administration,
but accidents do need to be reported to the liability insurance carrier,
Berkshire Hathaway Homestate Insurance Company at 1-800-488-2930.
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