What is Covered?
Liability coverage is available for any owned, non-owned, or hired auto operated by a state agency or institution of higher education. Liability claims are paid out when a state employee, who is driving in the course and scope of work, is at fault in an accident that results in bodily injury or property damage to another party. The policy provides liability limits up to the Texas Tort Claims Act caps: $250,000/$500,000/$100,000; and up to $1 million when the Texas Tort Claims Act does not apply. Deductible options are available.
Physical damage coverage is elective and may only be purchased on state-owned motorized equipment. This may include but is not limited to: private passenger vehicles, buses, trailers, golf carts, tractors and other mobile equipment. The coverage pays for repair of the state-owned motorized equipment, or Actual Cash Value if the vehicle is totaled. There is a $1,000 deductible.
Hired and non-owned coverage provides protection to state entities whose employees drive their personally-owned, leased, or rented vehicles in the course and scope of employment. The policy will pay the difference for covered claims between the underlying policy limits of the personally owned vehicle and the total amount of the loss, up to the policy limit. For personally-owned vehicles driven by state employees in the course and scope of employment, the non-owned liability coverage is excess coverage to protect the state entity that will respond after the employee’s personal insurance has been exhausted. Premium is a flat rate multiplied by the number of drivers. Agencies that insure their state-owned motorized equipment for liability and or physical damage automatically have hired and non-owned coverage included.