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Vehicle Liability Insurance

State Owned Vehicles:

All University owned, leased or rented vehicles are covered for liability by the State Motor Vehicle Insurance Account (SMVIA).

This means that this State agency provides third party liability coverage for the drivers of State owned motorized land transportation vehicles. Covered drivers included State employees and other persons given permission by the State (or University) to operate the vehicle on State business. The repair of the damaged State vehicle is paid (budget permitting) by the budget of the department that owns the vehicle. The State Office of Insurance and Risk Management

(ORIM) Department of General Services, who handle all vehicle accident and injury claims, administers the State vehicle liability self-insurance program.

Privately Owned Vehicles:

Personal liability insurance is primary coverage when a private vehicle accident occurs during official State business. Employees who drive their personal vehicle on State business must annually verify personal auto liability insurance (form STD 261 Auth To Use Private Veh on State Business Authorization to Use Privately Owned Vehicles on State Business) to the person authorized to approve travel expense. The SMVIA will provide coverage only after the private carrier's policy limits are exhausted by payment. Refer to SAM section 0754, 2420 and Vehicle Code Section 16020 et seq. An employee may seek relief from out-of-pocket expenses such as deductibles from the Board of Control in the event of a vehicle accident while on State business. The self-insurance program does not provide for loss or damage to privately owned vehicles, State vehicles, or CSU vehicles. The insurance is designed only to reimburse third parties (when the accident is the fault of the State driver) and not the State or University employees.

Rental Vehicles Liability Coverage:

State contracted auto liability coverage applies only when the employee uses the uses the American Express (State) Government Card for rental car payment. Cash, personal checks and personal credit cards are prohibited forms of payment for State contracted commercial car rentals. The currently designated State Commercial Car Rental vendor for in-State travel is Enterprise. State employees should decline any separate vehicle liability insurance when rented through Enterprise Rental Car because of the coverage already provided through the State of California Commercial Car Rental contract. If renting from alternative companies, additional insurance should be obtained.

The State of California contracted car rental agency, Enterprise Rental Car will maintain in force, liability insurance coverage to protect and defend the State of California and its State employees against liability for personal injury, death and property damage arising from the use of the vehicle up to $500,000 per occurrence for combined bodily injury and property damage. Loss or damage coverage to a rental vehicle is NOT provided when the State driver contributes to an accident while operating the vehicle under the influence of alcohol or any illegal non-prescription drug and/or was operating the vehicle for any intentionally illegal purposes. Review the Office of Fleet Administration (OFA) website for the current State of California Commercial Car Rental Contract which cites specific information on employee identification and payment and Insurance requirement information.

Please note that a rental vehicle used on State business MAY NOT be driven for personal use at the conclusion of the State business. The State contract does not cover for any liabilities scheduled beyond official State business. If the rental vehicle is needed beyond official State business, the employee must return the rental vehicle and obtain a new rental contract for personal use. Contact Statewide Travel Management Coordinator at (916) 327-2068 at the Office of Fleet Administration (OFA), Department of General services for further information about the State of California Commercial Car rental contract.

Physical Damage:

Commonly referred to as collision and comprehensive coverage, physical damage coverage is not provided by the SMVIA for State vehicles, privately owned vehicles, or rental cars used on State business. However, the employing State agency or department may reimburse damage for losses to privately owned vehicles. Report physical damage to a rental vehicle to the rental car company.


Information regarding the “Use of University and Private Vehicles Policy Guidelines” is available at the California State University, San Bernardino Risk Management office.