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Vehicle Insurance

Since 1977, the State of California has elected to be self-insured for its motor vehicle liability risks under the State Motor Vehicle Liability Self-Insurance Program (VELSIP).  The Office of Risk and Insurance Management (ORIM) administers this formal self-insurance program that duplicates most functions of automobile insurance companies.  This office charges an insurance cost to all State agencies which own vehicles, including the CSU.  ORIM maintains a fund for the payment of third party claims and expenses, and when accidents occur, manages the claims process on behalf of the State agency.

ORIM staff include claims adjusters who evaluate claims to determine the State's liability and to negotiate settlements when the driver of the State vehicle is determined to be at fault.  When lawsuits are filed, the Office of the Attorney General or Department of Transportation's Legal Division provides legal services to the ORIM Vehicle Claims Unit.

When a liability claim is filed for any State vehicle, or any vehicle used on State business, the State Motor Vehicle Insurance Account (SMVIA) is the general fund from which claims are paid.  When state employees are authorized to use privately-owned vehicles on State business, their personal automobile liability insurance is the primary coverage.  Any liability in excess of their personal insurance will be considered for coverage under VELSIP.

Vehicle Insurance Premium

The CSU Chancellor's Office is invoiced by the State's Self-Insurance Program, and in turns bills each campus.  Premium rates are derived from current underwriting rates, loss history, and total vehicles insured.  Each CSU campus submits annual reports of vehicle inventory and accidents to the Chancellor's Office.