Automobile Liability Insurance

State of California: Car Rental Agreement

The State's Vehicle Liability Self Insurance Program (VELSIP), to which the University pays an annual premium, provides liability coverage to employees driving University-owned vehicles in the course and scope of employment. This program is administered by the State Office of Risk and Insurance Management. Collision and comprehensive coverage (damage to the vehicle and employee injury) are not provided under this program. The program is designed to provide defense expenses and reimbursement to third parties when the accident is the fault of the University driver. The following insurance guidelines apply:

University Vehicle Use

  • Driver: The driver, who is either a member of faculty, staff, student assistant, or an authorized volunteer, when authorized to drive a University vehicle to conduct official University business and has an approved Travel Authorization, is covered by Workers Compensation Insurance.
  • Passenger(s): Authorized passengers are covered by either Workers Compensation (if University employees) or the University's general liability coverage (if non-employees).
  • University Vehicles: The University carries no insurance for the repair of damage to its vehicles. If the University driver is found to be "at fault", cost of repair for damages to University-owned vehicles may be the responsibility of the driver's individual department.
  • Non-authorized passengers: There is no insurance for these passengers. All passengers must be either involved with the official University business trip, or be otherwise approved by the University driver's supervisor for each trip. If non-authorized passengers are injured in a University vehicle their only recourse for recovery of medical costs would be through a legal challenge.

Privately Owned Vehicles

In accordance with the California Vehicle Code, are the responsibility of the vehicle's owner. When an employee drives their personal vehicle on University business, that employee's personal automobile liability insurance provides the primary liability coverage, with VELSIP providing excess coverage over and above the employee's personal insurance. Employees who drive their personal vehicle on University business must have a current Authorization to use Privately Owned Vehicle on State Business form (STD 261) and have an approved Travel Authorization (see Travel website).

When University employees rent a vehicle

(under the State of California car rental agreement)

Negotiated by the State, they are covered by an insurance policy up to $500,000 provided by the car rental agency as a provision of the State contract. When an employee rents a vehicle from an agency other than the State vehicle contract agency, the employee's personal automobile liability insurance provides the primary liability coverage.

Authorization to drive vehicles on University business

Restricted to University employees. Information regarding authorization can be Downloaded: Driving Privileges & Use of Motor Vehicles.pdf

Vehicle Accidents

Vehicle Accidents must be reported by the Employee/Supervisor to Public Safety the same day and in no event, more than 48 hours following the accident. Also see: Vehicle Accident Reporting Procedures. For information regarding VELSIP, please contact the University Risk Manager.