Introduction to the University of Texas System Auto Insurance Program Office of Risk Management
Purpose • To train UT Auto Contacts on basic auto insurance terminology. • To make UT Auto Contacts aware of the different type of auto policies available. • To train UT Auto Contacts to accurately classify vehicles.
Auto Insurance Terms Auto Liability: Provides protection for damages because of bodily injury or property damage to others. Physical Damage Coverage: Provides for loss/damage to a coveredauto. Most common physical damage coverage is Collision and Comprehensive coverage. Subject to policy conditions and exclusions.
Auto Insurance Terms Collision coverage includes collision with another object; or the covered autos overturn. Comprehensive coverage includes loss from any other cause other than collision.
Auto Insurance Terms Hired Autos include leased, hired, rented or borrowed vehicles (except from employees). Non-Owned Autos include vehicles not leased, hired, rented, or borrowed that are used in connection with your business; Employee’s use of a personal vehicle to conduct official UT business.
Auto Insurance Terms Personal Injury Protection provides for: • Necessary expenses for medical and funeral services. • 80% of an insured’s loss of income from employment. • Provides coverage for you, family member, or anyone else occupying a covered auto with your permission.
Auto Insurance Terms Uninsured/Underinsured Motorists Insurance coverage: Pays for damages which we are legally entitled to recover from an uninsured motor vehicle (other party) because of bodily injury sustained by an insured (us) or property damage (to our vehicle or property) caused by an accident.
5 Types of UT Auto Policies • System-wide Auto Liability Policy • Hired/Non-Owned Auto Policy • Physical Damage Policy • “Athletics” Auto Policy • “Full Coverage” Policy Note: This training is a summary only, please refer to the policy language for complete description of conditions and exclusions.
System-wide Auto Liability • Liability coverage only – 3rd parties • Provides coverage for all University-owned vehicles (including long term leases) with the exception of “Full Coverage” vehicles. • Combined Single Limit • $600,000 Bodily injury and Property Damage • Deductible - $2,500 per accident
Hired/Non-Owned Auto • Designed to be excess of other insurance • Liability Limits – Hired/Non-Owned Autos • Combined Single Limit $600,000 Bodily injury and Property Damage • Deductible - $2,500 per accident • Physical Damage – Hired Autos only • Comprehensive coverage - $100 deductible • Collision - $500 deductible • Maximum limit of $75,000
Physical Damage Policy • Comprehensive and Collision Coverage on scheduled vehicles only. • $100 Comprehensive Deductible • $500 Collision Deductible • Provides for repair costs or actual cash value due to a covered loss, whichever is less.
“Athletics” Policy • Provides coverage for all loaned, courtesy, and promotional vehicles to UT for business and personal use. • Primarily used by Athletics Department employees and their spouses. • Vehicles must be scheduled. • Coverage includes: • Liability • Personal Injury Protection ($2,500 per insured) • Uninsured/Underinsured Motorist • Physical Damage
“Full Coverage” Auto Policy • Provides coverage for University-owned vehicles for employees who are assigned a vehicle for business and personal use. • Primarily used by Police Department employees. • Vehicles must be scheduled. • Coverage includes: • Liability • Personal Injury Protection ($2,500 per insured) • Uninsured/Underinsured Motorist • Physical Damage
Purpose of Auto Classification • This training is designed to provide a simple and uniform system for classifying UT owned/leased vehicles. • Accuracy is necessary as auto insurance premiums are rated based on the classification schedules. • Example: Incorrectly classifying a passenger van as a bus results in a higher premium.
What are rating classification factors? • There are certain factors to consider when classifying vehicles. • Radius of vehicle (trucks & trailers) • Type of vehicle • Weight size (trucks and truck tractors, trailers) • Passenger Capacity (Buses) • Garaging Territory
Radius of Vehicle • Trucks and Trailers are subject to radius classification. • Radius is based on the regular and normal use of a vehicle. • Four types of radius: • Campus use only: not used off campus • Local Radius: up to 50 miles radius • Intermediate: 51 to 200 miles radius • Long Distance: over 200 miles
Type of Vehicle • Private Passenger Autos (PPA) • Trucks • Trailers • Motorcycles • Buses • Special Vehicles • Fire Trucks, Ambulances, Law Enforcement, Motor Homes, Golf Carts, MULES, Others
Private Passenger Autos (PPA) • A PPA is a four wheel motor vehicle other than a truck type. • This includes station wagons. • It does NOT include utility vehicles. • It does NOT include vans.
Examples of PPA’s Two door hatchback Four door sedan Stationwagon
Trucks • Trucks includes pickup trucks, vans, utility vehicles, cargo trucks, and delivery trucks. • A van is considered a truck regardless whether it is a passenger van or a cargo van. A passenger van is NOT a bus. • Utility vehicles mean Jeeps, Blazers, Explorers, Suburbans and other similar vehicles. • Trucks include licensed Multi-Utility Lightweight vehicles (MULES). • Exceptions: Do not include Special Vehicles and Unlicensed MULES.
Size of Trucks • Trucks are further classified according to weight size. • Two weight terms to be familiar with: • Gross Vehicle Weight (GVW) is the maximum loaded weight of a single vehicle. • Gross Combination Weight (GCW) is the maximum loaded weight for a combination of a truck-tractor and trailer.
Truck Size Classes • Light Trucks have a GVW of 10,000 pounds or less. • Medium Trucks have a GVW of 10,001 to 20,000 pounds. • Heavy Trucks have a GVW of 20,001 pounds to 45,000 pounds. • Extra Heavy Trucks have a GVW over 45,000 pounds.
Truck Tractor Size Classes • Heavy Truck Tractors have a GCW of 45,000 pounds or less. • Extra Heavy Truck Tractors have a GCW over 45,000 pounds. • Please notify the ORM before adding any Extra Heavy Truck Tractors to the database as we need to obtain the insurance carrier’s approval for auto coverage.
Examples of Light TrucksGVW of 10,000 lbs. or less Licensed MULE Express 1500 Work Van Dodge Ram PU Chevrolet Suburban
Trailers • Trailers are vehicles that are not self propelled and are designed to be pulled by a PPA or truck. • Trailer does NOT include mobile homes and recreational trailers. • There is NO liability premium charge for trailers.
4 Classes of Trailers • Service or utility trailers • Semi-trailers • Trailers • Trailers with Special Equipment
Service or Utility Trailer • A service or utility trailer is any trailer or semi-trailer with a load capacity of 2,000 pounds or less.
Semi-trailers • A semi-trailer is a trailer with wheels at rear only, equipped with fifth wheel couple device for use with a truck-tractor, with load capacity over 2,000 pounds.
Trailers • All other types of trailers, including tilt bed trailers with a load capacity over 2,000 pounds, other than a semi-trailer.
Trailers with Special Equipment • These trailers are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: • Air compressors, pumps and generators • Spraying and welding equipment • Cherry pickers and similar devices • Operations of the equipment is not covered under the Auto Liability Policy.
Motorcycles/Scooters • There are two classifications for motorcycles or scooters: • Motorcycles/scooters other than Law Enforcement • Law Enforcement Motorcycles or Scooters
Buses • Buses include school buses, shuttle buses, blood mobile buses, etc. • Buses do NOT include passenger vans. • Four classes by passenger capacity: • 1 to 8 passenger • 9-20 passengers • 21-60 passengers • Over 60 passenger
Special Vehicle Classifications • Fire Trucks – self explanatory • Ambulances – self explanatory • Motor Homes – self explanatory • Law Enforcement • Golf Carts and MULES • Riding Lawn Mowers • Special Mobile Equipment or Multipurpose Vehicles
Law Enforcement Vehicles • There are three classes of Law Enforcement Vehicles. • Law Enforcement - Private Passenger Auto (PPA) • Law Enforcement - Trucks/SUV/Vans • Law Enforcement - Motorcycles or Scooters
Golf Carts • Two classes of Golf Carts • Unlicensed Golf Carts • Campus use only, not allowed on public roads. • Includes unlicensed MULES. • There is NO liability premium charge at this time. • Licensed Golf Carts
Riding Lawn Mowers • Campus use only • Small yard/lawn mower type • Does NOT include Tractors • There is NO liability premium charge at this time.
Special Mobile Equipment or Multipurpose Equipment • This classification includes self-propelled equipment included but not limited to: • Street Sweepers • Cherry Pickers • Motor Graders • Tractor-mowers • Forklifts
Garage Territory • The garage territory is the principal city where the vehicle is garaged. • Do not confuse the main campus location or department with the garaging territory. • Example: UT Austin has vehicles garaged at Austin, Port Aransas, Midland. UTMDA has vehicles garaged at Houston, Bastrop, Smithville.
Commercial DriverLicense (CDL) Reminder for truck and special vehicle drivers: • A CDL is required of authorized drivers who operate commercial motor vehicles (CMVs) for official University business. • In accordance with the US Department of Transportation's Federal Motor Carrier Safety Regulations, 49 CFR Parts 40 and 382, employers shall test drivers holding a CDL for drugs and alcohol. The regulations call for pre-employment, post accident, reasonable suspicion, random, return-to-duty, and follow-up drug and alcohol testing. Component institutions with authorized drivers who are required to hold a CDL shall adopt a drug and alcohol-testing program that meets the regulatory requirements.
Helpful tips • UTS157: Automobile Insurance Coverage for Officers and Employees and General Requirements for the Use of Vehicles, go to: http://www.utsystem.edu/policy/ov/uts157.html • For Weight Sizes, check the title or registration of the vehicle/trailer or go the manufacturer’s web site.
ORM Contacts Eric Agnew, Risk and Insurance Analyst • 512-499-4305 (ph), 512-499-4524 (fax) • firstname.lastname@example.org Benny VandenAvond, Insurance Specialist • 512-499-4298 (ph), 512-499-4524 (fax) • email@example.com