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					    2004 Property Coverage Tips                         DAS-Risk Management Division


                       State-Owned and Employee Vehicles:
                            Physical Damage Coverage
    State-Owned Vehicles:
     Loss settlement for state-owned vehicles has changed. Losses are now adjusted
       based upon type of vehicle. There are two types:
          o Passenger Vehicles: Cars, trucks and vans, with a weight carrying cargo
              capacity of one ton or less, including attached non-motorized trailers.
              These vehicles must be licensed under state law for highway use. Note:
              This category does not include one ton cab chassis.
          o Other Vehicles: Large vehicles, including sanders, snowplows, cab
              chassis, trucks with cargo capacity of more than one ton, airplanes, boats,
              and trains.
     Adjustment of losses:
          o Passenger Vehicle Loss Settlement:
                   Owned by you qualify for:
                          Actual Cash Value; or,
                          If surplus, the declared value at the time sent; or,
                          The cost to repair the vehicle, whichever is lower.
          o Other Vehicle Loss Settlement:
                   Owned by you qualify for:
                          The lower of necessary and reasonable cost to repair,
                          The cost of replacing it with property of equivalent function
                             and reasonably similar to the old, or
                          If surplus, the declared value at the time sent.
                   Totaled “other vehicles” qualify for replacement value, i.e., “new for
                      old” coverage when the cost to repair exceeds 80 percent of NADA
                      book (retail value) or similar depreciated value.
                   “Other vehicles” that you do not own, did not purchase new, or will
                      not replace with a new vehicle, qualify only for the lower of:
                          Depreciated value, or
                          If surplus, the declared value at the time sent.
          o Alternative fuel vehicles are considered to be “other vehicles” for the
              purpose of loss settlement.
     We will pay reasonable and necessary towing charges.
     If your agency is unable to store the damaged vehicle on state-owned or state-
       rented lands, we will pay reasonable and necessary storage charges.
     Remember:
          o Losses to vehicles will be paid to the owning agency and charged to the
              driver’s agency.
          o Paid losses for surplus property will be paid to the owning agency and
              charged to the agency in possession and control at the time of the loss.
    Employee Owned Vehicles:
     The state cannot pay for physical damage to employee owned vehicles.
     By statute, mileage reimbursement is all they can collect.
Note: Actual coverage is fully explained and bound only by the full policy wording.
03.17.04

				
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