Vehicle Insurance Information - FAQ
Posted on October 21, 2021 at 12:49 PM by Kansas Department of Administration
Please Contact D/A Legal Office at 785-296-6000 for additional information on general legal issues
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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.
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 LIABILITY 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.