Rural Transit Vehicle Insurance Study

004510761984PDFTech ReportDOT-l-85-42Cost controlDriversIndian reservationsLiability insuranceParatransit servicesRural areasSafetyEducation and TrainingLawPublic TransportationSafety and Human FactorsWashington (District of Columbia)United StatesUnited States. Dept. of Transportation. Office of the SecretaryWisconsin. Dept. of Transportation. Social Media Peer Exchange Planning TeamFederal Transit Administration 50th AnniversaryThis study examined organizations providing rural transportation services in Wisconsin to determine the difficulty they experienced in obtaining vehicle insurance and then examined insurance management as a means of controlling costs. Organizations involved include private, non-profit groups; agencies of county governments; commercial taxis; and two Indian tribes. Each fleet average 4.5 vehicles with an annual insurance premium of $2,500. It was found that coverage is generally adequate with over half buying at the recommended $1 million level. It was recommended that comprehensive liability coverage without limits be purchased, that there be no liability exclusion for fellow-employee suits; that there be no separate medical payments coverage which duplicates other insurance coverage; and that comprehensive coverage for vehicles be purchased in preference to more restrictive perils coverage. While coverage was found generally available and costs were reasonable, it was noted that conditions may change. If insurance does become more expensive and harder to find, it is recommended that more intensive training and safety programs be instituted, that there be checks of applicant and employee driver records, and that there be systematic solicitation of competitive bids. Social-service agencies may find it advantageous to band together with a single insurer to control costs and insure future availability.83