A company vehicle policy, or company vehicle use agreement, establishes which employees are eligible for a company fleet vehicle. It also outlines the requirements for qualifying for a company car, basic rules employees must follow when using company vehicles, and disciplinary action for misusing vehicles.
A company vehicle use policy is a legally binding agreement that clearly defines what your business will and won't allow when an eligible employee uses a company vehicle. Having this policy in place protects businesses if an employee gets hurt while using company property or misuses it and causes damage.
The Policy for Vehicle Management contains information on the provision, use, control, insurance, maintenance, safety and protection, accidents,
Accident Procedures
In this section, outline the steps the driver should take if they get into an accident, including who the driver should report the accident to (such as the HR department), where they can access registration and insurance cards, whose information they should exchange with the other involved party, and who will be responsible for paying for the damag.
Are company vehicles covered under your personal auto policy?
If a vehicle is used primarily in business, there is likely no coverage under a personal auto policy.
If you use your personal vehicle for work occasionally, your personal insurance carrier might be able to tailor your policy to reflect this usage.
If the vehicle is owned by a business, there will be no coverage under a personal auto policy.
Are You covered for personal use of company vehicle?
Typically, with personal insurance policies, household members are covered for use of the vehicle so long as there has been accurate disclosure regarding who lives there.
However, that isn’t always the case when it comes to company-owned cars.
You’ll need to confirm whether or not household members are covered by talking to your agent.
Company Responsibilities and Non-Responsibilities
State what the company will be responsible for, including ensuring the safety of the vehicle, scheduling regular maintenance, and paying for car insurance and registration.
Define what responsibilities your company covers, and conversely, what you are not responsible for, such as covering fines and tickets incurred by employees who did not obey tra.
Driver Rules and Responsibilities
Include a section regarding driver rules and responsibilities to ensure the employee remains safe while operating a company vehicle.
Detail how you want employees to use these vehicles and what employees will use the company vehicle for, along with prohibited uses.
Additionally, this section should lay out specifics for employees and provide a list.
Employees with Disabilities
Most employees with disabilities can still operate a vehicle and will likely qualify for a company vehicle.
To remain inclusive, companies should define specific steps and accommodations they will make for drivers with a disability, such as providing parking spots.
List eligibility exclusions as well, such as employees who are taking medication tha.
Personal Use
The policy should clearly state how and when employees can use the company car.
Most companies restrict vehicle usage to working hours only (or on a case-by-case basis) to prohibit personal use — your policy should explicitly state what personal use means to your business, such as using it for personal errands or commuting to and from work, so empl.
Policy Overview
A policy overview should provide drivers with a summary of the requirementsand rules for operating a company vehicle.
It should include a brief description of what defines a company vehicle, along with when and to whom the policy applies (e.g., the policy applies both during and outside of working hours, should an employee be operating the vehicle).
Qualifications For Using A Company Vehicle
In this section, outline the employee qualifications for using a company vehicle.
For example, an employee may qualifyif they require a vehicle to complete their daily work responsibilities, such as a delivery driver.
Others may qualify if they travel over a certain number of miles in a given time frame for work purposes, including traveling to a s.
What do companies allow as personal use of company vehicle?
Personal use of an employer-provided vehicle can include:
the following:Commuting between a personal residence and work location (except for infrequent de minimis use i.e., one day per month) Local transportation unrelated to the organization’s trade or business (small personal detours while on business aren’t considered personal use) . What is your company's driving policy?
Company driver rules.
Obey traffic laws in your jurisdiction and be courteous toward other drivers.
Document driving expenses.
Monitor gas, tire pressure, and fluid levels.
Report any damage or problems to your assigned vehicle immediately.
Report changes to your driver privileges, such as:
driver's license suspension immediately.
Always lock company cars.
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