HBP Part 19.1.1 Vehicle Insurance and Related Claims

Handbook of Business Procedures

Date published: April 13, 2010
Last revised: September 23, 2021
Issued by: Risk Management



  1. System-wide Auto Liability Policy
    1. Auto Liability policy Coverage Limits:
      1. $600,000 (per occurrence - in Texas)
      2. $1,600,000 (per occurrence - outside Texas)
    2. Auto Liability policy Deductible:
      1. $2,500 per accident.
      2. Depending on the nature of the damage claim, Risk Management may charge the department multiple times for the same accident. However, the total charge for any one accident will not exceed $2,500.
    3. How to Insure:
      1. If you purchase your vehicle through the University’s standard purchasing process, Fleet Services will notify Risk Management when you acquire a new vehicle.
      2. If you acquire a vehicle that does not pass through the University’s Fleet Services area, provide the following information to Risk Management:
        1. Department name and contact person for decisions about vehicle
        2. Vehicle information: Year, Make, Model, Vehicle information-Vehicle Identification Number (VIN), Vehicle Description, License Plate Number, Gross Vehicle Weight, Total Purchase Price
        3. Date purchased/acquired
        4. County where vehicle will be garaged
        5. Will vehicle be operated on campus only, local, intermediate, or long distance use?
      3. All vehicles owned by the University of Texas at Austin will maintain coverage through the Auto Liability policy regardless of any additional coverage they may carry via another policy. (i.e. Physical Damage).
      4. Currently, the Auto Liability policy is purchased with designated University funds. In the future, departments may be charged for Auto Liability coverage for university-owned vehicles.
    4. Evidence of Financial Responsibility
      1. All university-owned vehicles are required to carry a copy of the current Certificate of Auto Liability Insurance in their glove compartments. This document lists the policy's number, effective coverage dates, deductibles, and payment limits.
      2. The university driver is responsible for ensuring that the university-owned vehicle is carrying current insurance information before operating it. This can be found in the vehicle packet, which should be placed in the glove box.
      3. Contact Risk Management if you need to obtain a copy of the current Certificate of Auto Liability Insurance.
  2. Physical Damage Auto Policy:
    1. The Physical Damage Auto Policy covers scheduled vehicles against theft and most types of physical damage.
    2. Physical Damage policy deductibles: (Scheduled vehicles only)
      1. $1,000 Comprehensive, Collision, Flood, Wind and Hail, Earth Movement.
    3. How to Insure:
      1. To request physical damage coverage for a university-owned vehicle, complete the Automobile Physical Damage Insurance Request and submit it to Risk Management.
      2. The coverage will begin as soon as the insurance company is notified.
      3. Departments may purchase Physical Damage insurance when vehicles are purchased at any time during the year and renew coverage on an annual basis. Risk Management will process a VT5 and charge the account number provided above to pay the annual policy premium.
  3. Hired/Non-owned Auto Policy:
    1. Covers hired and non-owned vehicles (See the definitions below).
      1. Hired vehicles: Autos that the university leases, hires, rents, or borrows. This does not include employee-owned vehicles.
      2. Non-owned vehicles: Autos that the university does not own, lease, hire, rent, or borrow. This includes liability only coverage when employee-owned vehicles are driven for official university business.
    2. Hired/Non-owned Liability Component
      1. Liability Coverage Limits:
        1. $600,000 (per accident).
      2. Liability Deductible:
        1. $2,500 per occurrence.
        2. Depending on the nature of the claim, the department may be billed multiple times for the same accident, but the total charge for any one accident will not exceed $2,500.
    3. Hired Physical Damage Component:
      1. Hired Physical Damage Coverage Limits:
        1. Applies to Hired autos only (Physical damage coverage does not apply to non-owned vehicles, i.e. employees' personal vehicles).
      2. Hired Physical Damage Deductible:
        1. $2,500 Comprehensive Deductible.
        2. $2,500 Collision Deductible.
    4. Hired / Non-owned policy coverage applies only after the limits of all other available insurance policies have been reached. "Other insurance coverage" includes coverage made available by the rental agency and the employee's personal auto insurance policy.
  4. Mexico Trip Auto Insurance


  1. Remain calm, and be cooperative and not argumentative. Remember that you are representing The University of Texas at Austin.
  2. Be prepared to report the accident. Gather as much information as possible at the scene, including the following:
    1. The other driver's name, phone number, and insurance information.
    2. Information about other vehicles involved—year, make, license plate.
    3. The names and phone numbers of any potential witnesses.
  3. Do not admit fault, and do not make any claims regarding the university's insurance coverage to anyone else involved in the accident.
  4. You should inform the parties involved that the accident will be reported to the university's insurance provider and that a claims adjuster will contact them. Be sure to get their names, phone numbers, and insurance information.
  5. Make every attempt to contact the police and file a report. If the accident occurred on campus, contact UTPD. If it occurred off campus, contact the local police department. You should try to obtain a copy of the police report for later submission to Risk Management.


  1. Report every accident involving a university-owned vehicle to Risk Management:
    • within 48 hours of the accident.
    • regardless of whom you believe is at fault.
    • even if it involves university-owned vehicles only.
    • even if you have previously reported it to the police. An Automobile Loss Notice form (ACORD) must be filled out and submitted along with the police report.
  2. Complete an Automobile Loss Notice form (ACORD) using the information you obtained at the scene. Contact Risk Management for any questions regarding the completion of the form. Please type or print clearly, and include the following information:
    • Date and time of accident.
    • Description of accident.
    • UT-owned vehicle being operated at the time of accident.
    • Names and phone numbers of anyone involved.
  3. Route the ACORD form, along with the police report, written statements, and any relevant documents to Risk ManagementMain Building 132, campus mail K5300 . Phone: 512-471-3723.
  4. Risk Management will forward the paperwork to the university's insurance provider, and an adjuster will contact the parties involved to discuss the accident and determine the amount of coverage available.
  5. Departments must complete and submit an ACORD form for every accident involving a university-owned vehicle. The university's insurance provider will not authorize any repairs until they review the ACORD form.
  6. For additional clarification refer to the vehicle packet placed in each UT owned vehicle.


Follow the above procedures to report all accidents involving university-owned vehicles to Risk Management within 48 hours of the occurrence. 


  1. If the accident occurs during regular business hours (Monday-Friday, 8 a.m.-5 p.m.) and involves serious bodily injuries or fatalities:

    Call 911

    notify UT Austin Risk Management at 512-471-3723 or

  2. If the accident occurs after regular business hours and involves serious bodily injuries or fatalities:

    Call 911

    notify UT Austin Risk Management at oa.riskmgt@austin.utexas.edu

    contact University of Texas Police Department— 512-471-4441

    and notify one of the following:

    • John Santos / UT System Office of Risk Management Claims Coordinator — 512-970-0249
    • Stacy Youngdale / UT System Office of Risk Management Director — 512-294-6215


  1. If the university driver is responsible for the accident, the university's insurance provider will pay for repairs to the other driver's vehicle.
  2. The insurance company will route invoices for the amount paid out on the claim to Risk Management.
  3. Risk Management will pay the invoices and then charge the driver's department. The department must provide an expense account number for the IDT.
  4. Depending on the situation, liability claims can consist of many separate charges (such as car repairs, rentals, medical costs, lost wages, etc.). Therefore, the department may be billed multiple times for the same accident.
  5. The department may be charged multiple times, but the total amount of the charges will not exceed $2500, the university's Auto Liability Insurance Policy deductible.
  6. The Auto Liability policy will pay to repair the other driver's (claimant's) vehicle, not the university-owned vehicle. The department is financially responsible for any repairs they choose to make to the university-owned vehicle unless the department has purchased comprehensive, physical damage auto coverage.
  7. Contact Risk Management for information about adding vehicles to the Comprehensive/Physical Damage Auto policy.


Risk Management
Email: oa.riskmgt@austin.utexas.edu
Direct Phone: 512-232-5153
Front Desk: 512-471-3723
Campus Mail: D8700



Part 19. Risk Management - Table of Contents