The NC Department of Insurance (DOI) and the Office of State Fire Marshal (OSFM) have announced an adjustment to the Physical Damage deductible applicable to state-owned vehicles. This change is intended to align with current market standards and help manage rising repair and claim costs across state agencies.
Effective July 1, 2025, the Physical Damage deductible increased from $500 to $1,000 per occurrence. This increase applies to all university vehicles covered under the state’s auto insurance program.
Deductible Overview:
- The deductible is the amount the department pays out-of-pocket for repairs before insurance coverage applies.
- For vehicles insured with Physical Damage coverage, departments will be responsible for the first $1,000 of any covered repair cost (increase from $500).
- Claims under $1,000 generally should not be submitted for reimbursement, as they fall within the department’s deductible responsibility.
Departments should take this change into account when preparing upcoming budgets and should evaluate the cost-benefit of maintaining Physical Damage coverage on their vehicle inventory.
The Insurance and Risk Management Office will continue to process claims as usual and is available to answer any questions about this update or coverage options.
Departments that would like to add or remove Physical Damage coverage for specific vehicles must contact their Origami Vehicle Coordinator, who can submit the request through the Origami Risk System. Coordinators can also review their current coverage and vehicle listings in Origami at any time.
Thank you for your attention to this change and for your continued partnership in managing the university’s vehicle insurance program responsibly.
If you have any questions or concerns, please reach out to us at ins-rm-epsi@ncsu.edu.