Automobile Physical Damage:
The State of Nevada self-funds its automobile physical damage exposures; there is no insurance company involved. As such, it is particularly important that agencies do as much as possible to minimize the cost of this program. The Risk Management Division will provide assistance and guidance, upon request, to agencies to help minimize costs and secure timely repairs to damaged vehicles. Outstanding claims will be reviewed every 30 to 60 calendar days and followed-up, as necessary. Agencies will be billed for this coverage at the beginning of the fiscal year and again before the end of the fiscal year (for any changes which may have occurred throughout the year).
Vehicle Coverage:
Comprehensive and Collision: This coverage is offered but not required for State-owned automobile physical damage. Agencies must elect this coverage if they want their vehicles insured under this program. Agencies not electing this coverage will be responsible for the entire amount of any loss to their vehicle. Certain vehicles, which are being commercially leased on a long-term basis, may also be eligible for coverage under this program.
Liability: All State-owned motor vehicles are required to have automobile liability via the self-funded auto liability program, administered through the Attorney General's Office.
How to Add or Delete a Vehicle:
Upon acquisition of a new vehicle, agencies have 30 calendar days during which time physical damage coverage will be automatically in force. Should a claim be filed on such a vehicle and accepted, the claim (subject to applicable deductibles) will be paid by Risk Management and premium for self-funded physical damage insurance will be assessed retroactively back to the date of acquisition. Claims filed on newly acquired vehicles, which have not been added to the insured vehicle schedule after 30 calendar days, will not be paid by Risk Management and will be returned to the agency for handling.
When agencies turn in vehicles to State Purchasing, insurance coverage will not be dropped until such time as the vehicle has been sold or until it has been reassigned to another agency.
Agencies shall submit all changes (additions, deletions, coverage changes) for physical damage coverage and liability coverage to the Attorney General's Office Tort Claim Unit (See SAM 2907). The Fleet Changes Form may be found on the Attorney General's website. Premium is assessed based on the date of acquisition. Even though the Risk Management Division administers the self-funded physical damage program, the Attorney General's Office maintains the database on the self-funded automobile fleet.
Deductibles:
Insured vehicle claims, other than Nevada Highway Patrol, are subject to a $1,000 deductible per occurrence for collision and comprehensive losses. Insured vehicles with the Nevada Highway Patrol are subject to a $1200 deductible per occurrence. If another party caused the damage and Risk Management successfully recovers the total amount of the loss, deductibles will be waived or reimbursed. Deductibles are subject to change with due notice, at the discretion of the Risk Manager to promote loss prevention.
Exclusions:
Claims will be denied if investigation reveals:
- The vehicle was not being used in the course and scope of employment.
- The employee does not possess a current valid driver's license.
- The employee was under the influence of alcohol, illegal drugs or prescription drugs with driving restrictions at the time of an accident.
- The employee violates provisions within Nevada statutes or administrative codes and the agency does not have or enforce adequate internal controls and procedures to prevent this type of activity.
- The Risk Manager will have the discretion to waive this exclusion if exceptional circumstances are presented. If a decision is made to cover the physical damage costs under these circumstances, the Risk Manager will seek reimbursement from the employee.
Reporting Procedures:
Agencies must report any Physical damage to covered vehicles that exceeds the deductible amount to the Risk Management Office as soon as possible, but not later than 90 calendar days from the date of damage. Reports must be made utilizing the online Vehicle Accident Form Origami Risk Portal link called, "Submit a Vehicle Accident/Property Loss Claim" on the Risk Management website. It must be filled out as completely as possible and accompanied by three repair estimates and claim documentation such as photos. It is the responsibility of the agency to secure and forward to the Risk Management Office all police reports that are related to a claim. Claims involving another party, which could possibly result in a claim against the State, must also be reported to the Attorney General's Office Tort Claim Unit.
Link to Origami: Submit a Vehicle Accident/Property Loss Claim
Glass Repairs/Replacement:
Glass Repairs: If the damage is such that a repair, rather than replacement, is needed, agencies are encouraged to make the repair. These repairs usually cost between $30 and $50 and are 100% reimbursable. Multiple estimates are not required for glass repairs and the usual $1,000 comprehensive deductible is waived.
Glass Replacement: The State of Nevada has agreements with several preferred vendors in various regions across the State. These agreements are intended to provide the State with consistently competitive pricing and reduce the administrative burden on agencies.
Agencies utilizing these vendors will not be required to obtain competitive bids for automobile glass replacement. For information regarding the participating vendors and other details of this program, please contact Risk Management. Agencies unable or unwilling to utilize preferred glass replacement vendors must obtain three (3) estimates for vehicle glass replacement and have the glass replaced for the lowest available cost.
Exceptions to this rule may be made on a case-by-case basis in rural areas where there are not three available vendors. Because of the nature of glass replacement claims, agencies may obtain telephone estimates for windshield and other vehicle glass replacements. However, these estimates must still be documented for the file.
Number of Bids for Collision Damage:
When a State-owned vehicle has been damaged in a collision, it is the responsibility of the owner-agency to secure three (3) estimates for the repair of the vehicle, unless a waiver is received from the Risk Manager. Waiver may be granted due to unique circumstances including but not limited to remote rural locations or specialty work. The repair must be made using the lowest responsible bid. Reimbursements will be made based on the low bid, when applicable and cannot include State of Nevada sales tax.
Agencies doing their own repairs will be reimbursed for parts only, subject to the applicable deductible amount. In cases where contracts are required for repair work pursuant to State Purchasing guidelines and requirements, and the affected agency does not have sufficient funds to execute a contract for the repairs, Risk Management may advance the funds for the loss, less the appropriate deductible, to the agency. Any unused funds that were advanced to an agency must be returned to Risk Management as soon as possible.
Another Party is Liable for the Damage:
If the vehicle is insured by the State for loss against physical damage, Risk Management is available to assist agencies with recovering from the at-fault third party. When another party is responsible for the damage to a State vehicle, Risk Management will assist the involved agency, if needed, to deal directly with the at-fault third party's insurer for the repair of the damaged vehicle. In these situations, the requirement to obtain three (3) estimates for repair of the vehicle may be waived. In cases where the damage is being taken care of directly by the other party's insurer, without going through Risk Management, agencies must still provide an informational summary, including and accident report and repair costs, of the loss to Risk Management.
If initial subrogation claim is denied or unavailable and the vehicle is insured for comprehensive and collision loss, Risk Management would pay the loss and would then further pursue recovery from the adverse party. If Risk Management makes full recovery from the adverse party, the agency will be reimbursed any deductible they may have paid. For claims that do not exceed the agency's deductible, the agency will work directly with the third party/his insurer for the repair and/or recoveries of monies spent for the repairs to the damaged State vehicle.
Payment to Vendors/Reimbursement to Agencies:
Agency Reimbursement - When an agency pays for the entire loss out of its budget, Risk Management will reimburse it after submission of the deductible, proof of repair, and evidence that the invoices have been paid by the agency. Agencies doing their own repairs will be reimbursed for parts only, subject to the usual deductibles. Agencies must submit the "Reimbursement Request Form," as provided via the Origami Risk System upon submission of the claim. Upon submission of the requested documentation, reimbursements are typically accomplished using a journal voucher for those agencies in the State accounting system, or a voucher payable/check for those agencies outside of the State accounting system.
Risk Management Direct Payment to Vendor - Risk Management can directly pay the vendor. In order to do this, it is necessary that we have the original invoice, written statement from the agency with OK to pay which indicates the work has been completed in an acceptable fashion, copies of the three (3) estimates, and the agency has paid Risk Management the appropriate deductible amount. Risk Management must have the deductible before they can pay the vendor.
Total Loss Replacements:
An insured vehicle will be deemed a total loss when the cost to repair it (according to the lowest estimate) is 80% or more of the Kelly Blue Book (mid-range) actual cash value (ACV). Agencies are then responsible for securing a minimum of three (3) reasonable salvage bids. After this is done, and once the deductible is received, Risk Management will pay the agency the ACV and any related expenses (e.g., towing) that the agency has paid, less any salvage recovery and deductible amounts. Vehicles may be salvaged via State Purchasing, as well as through commercial salvage operations. For assistance with this process, contact Risk Management. Agencies are responsible to use these recovered funds for authorized expenditures only.
In the event a vehicle is "totaled," the agency must notify Purchasing (to remove the vehicle from the State inventory) and the Attorney General's Office (to delete the vehicle from self-funded insurance coverage). Agencies may decide to keep a totaled vehicle (usually for parts). When they do this, the high salvage bid will still be deducted from the ACV amount. If a vehicle has been totaled, it will not be insured for physical damage coverage in the future.
Towing:
Towing charges related to an insured comprehensive or collision loss will be reimbursed, subject to the appropriate per claim deductible. Towing should be limited to getting the disabled vehicle to the repair shop or to the closest State facility where it can be stored until such time as a repair can be done or until the vehicle can be sold.
Storage:
Efforts should be made to minimize the cost of storage of a disabled vehicle in commercial storage areas. Reasonable storage costs (generally not to exceed 10 calendar days) are a reimbursable expense. however, if the duration of storage is likely to be lengthy, the agency can request assistance from the Risk Management Division to move the vehicle to a State-owned property to minimize storage fees. The Risk Management Division will follow-up with agencies every 30 to 60 calendar days to determine the status of the repairs. If excessive fees are being accumulated, the agency head will be contacted for appropriate action.
Replacement Vehicles/Loss of Use:
The State's self-funded automobile comprehensive and collision program does not provide for temporary replacement vehicles (i.e., rentals) while the damaged vehicle is being repaired or replaced.
Special Equipment:
Equipment that is permanently attached to a vehicle is normally insured for physical damage as part of the vehicle, subject to the usual deductibles; examples of this would include such things as NHP light bars, external lights, fixed radios, etc. Other equipment that is in the vehicle, but is not permanently affixed, is insured under the State's property insurance program (which is subject to a $10,000 deductible). Some examples of this type of equipment include: State issued firearms, cellular phones, portable two-way radios, laptop computers, etc. Vehicle operators should do whatever is prudent to secure the contents of their vehicle to protect them from damage or theft.
Personal Vehicles:
When a personal vehicle is used on State business, and is involved in a collision, the employee will need to file a claim with their personal insurance carrier. Risk Management does not insure personal vehicles or reimburse for any collision deductibles.
Rental Vehicles:
Vehicles must be rented from companies with whom State Purchasing and Fleet Services Division have negotiated State-wide agreements. It is not necessary for the agency to purchase additional insurance when renting under those agreements as the negotiated contract rates include insurance coverage. As such, usage of the negotiated contracts is mandatory. Any agency renting outside those agreements will be responsible for their own insurance coverage and for any accident claims.
Leased Vehicles:
Agency may lease vehicles rather than own them directly. There may be situations where it is in the best interest of the State for agencies to lease vehicles. When the agency lease agreement requires that the State insure these vehicles, it is the responsibility of the agency leasing a vehicle to notify the Attorney General's Office. As with State-owned vehicles, agencies may elect comprehensive and collision (physical damage) coverage (liability is mandatory) to be covered for these types of vehicle losses. Unless physical damage coverage has been elected by the agency, damage to leased vehicles will not be paid by Risk Management; all physical damage costs and related expenses will become the responsibility of the agency.
Contractors and Mobile Equipment Insurance:
Agencies may insure their contractor's or mobile equipment (e.g., back hoes, graders, forklifts, dump trucks, and other large construction type equipment). Only equipment that is scheduled on the commercial property insurance policy is covered for loss against physical damage or theft. Agencies should contact Risk Management if this coverage is desired.