Hired & Non-Owned Auto Liability and Other Auto Coverage Issues

The responsibility to respond to our members' coverage questions and provide coverage interpretation primary falls on OMAG’s Underwriting and Member Services Departments with support provided by OMAG’s Legal and Risk Management Departments. Providing a clear and consistent response to these inquiries is always our goal.

OMAG provides Hired & Non-Owned Auto Liability to all Municipal Liability Protection Plan members that schedule their autos under our coverage. This coverage provides liability coverage on an excess basis for vehicles that are not owned by the city but are driven by an employee of the city in the scope of their duties on behalf of the city.  

An employee’s vehicle would fall in the category of a non-owned vehicle with the employee’s personal insurance being primary. This coverage does not include physical damage to the non-owned vehicle.

When a city employee is driving their own private vehicle while conducting city business and has an accident…

If the accident was the employee's fault: The employee’s personal auto liability coverage would be PRIMARY and the city’s coverage EXCESS.  If the employee’s coverage is exhausted, then the city’s could apply – but only within Oklahoma Governmental Tort Limits.
              
If the accident was the other person’s fault: The other person's auto liability coverage would apply. City’s would not due to no negligence on the city’s part.

If the accident was the other person’s fault, but that person has no insurance: The other person would be responsible. City’s insurance would not apply due to no negligence on the city’s part.

When a city employee is driving a city vehicle while conducting city business and has an accident…

If the accident was the employees fault: The city’s auto liability coverage would apply – not the hired & non-owned liability. If the employee has permission to use the city vehicle and is in the scope of their duties, the city’s coverage would apply.

If the accident was the other person’s fault: The other person's auto liability coverage would apply. City’s would not due to no negligence on the city’s part.

If the accident was the other person’s fault, but that person has no insurance: The other person would be responsible.  City’s insurance would not apply due to no negligence on the city’s part. If OMAG provides physical damage coverage on the city’s auto, OMAG would provide coverage for the damage to the city’s vehicle and then subrogate back against the other person for reimbursement.

When a city employee is driving a city vehicle while conducting city business, but runs a personal errand and has an accident…

If the accident was the employee's fault: The city’s auto liability coverage would apply – not the hired & non-owned liability. If the employee has permission to use the city vehicle and is in the scope of their duties, the city’s coverage would apply. If the employee does not have permission to use the vehicle for personal errands the city’s coverage would not apply.

If the accident was the other person’s fault: The other person's auto liability coverage would apply. City’s would not due to no negligence on the city’s part.

If the accident was the other person’s fault, but that person has no insurance: The other person would be responsible.  City’s would not apply due to no negligence on the city’s part. If OMAG provides physical damage coverage on the city’s auto, OMAG would provide coverage for the damage to the City’s vehicle and then subrogate back against the other person for reimbursement.

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