Vehicle Insurance Terminology

Liability

Liability insurance covers injuries and property damage to another person or thing.  All state-owned self-propelled vehicles at minimum must be insured for liability.

Collision

Collision insurance covers damages to the state-owned vehicle when physical damage occurs from a collision with another vehicle or object.  

Comprehensive

Comprehensive insurance covers damage to the state-owned vehicle as a result of falling objects, theft, larceny, and contact with animals.  Departments can choose to add comprehensive coverage only to a vehicle.

Medical Payment

Medical Payment, MedPay, is a required coverage on 15 passenger vans.  ‘MedPay’ covers medical expenses for the passengers (non-employees as passengers or students) in the van that may need medical assistance in the event of an accident.  ‘MedPay’ would provide up to $10,000 worth of medical expenses that may occur.  ‘MedPay’ does not cover employees that are injured.

Vehicle Sold “As-Is, Where-Is”

Vehicle is sold at its current location.  The vehicle will go out to bid for ten (10) days.  The buyer has 10 days to pick up the vehicle.

Insured Vehicle Driver

A paid University state employee.  State employees are individuals working for the State of North Carolina, as applicable to their respective institutional employers for wages and salary.  NC State University individuals must receive a University payroll check in order to be considered an employee.   

3rd Party Claimant

Individual who is pursuing their claim against the at-fault person or insurance company.

Deductible

The out-of-pocket cost the department must incur when compensation is paid by the insurance company.

Actual Cash Value (AVC)

The cost to replace an item as new, minus its decrease in value due to age, use or condition.  Current market value.

Claims Adjuster

Person responsible for investigating and setting claims.