Company vehicle policy is a guideline given by companies regarding the use of company vehicles. A company vehicle is any type of vehicle assigned to employees to assist in their transportation requirements for the purpose of executing their jobs.

These vehicles belong to the company, not the employees, and the policy is designed to ensure that the employees use the vehicles properly. The company vehicle policy governs all the employees who are eligible to receive a company vehicle to use sporadically and those who are employed specifically to drive a company vehicle full-time.

Elements of a company vehicle policy

There are three categories of employees who are eligible to be assigned a company vehicle. These categories include:

  • Employees who are required to travel for more than a specified number of kilometers per year to fulfill the interests of the organization;
  • Employees who drive company vehicles as part of their daily job; and
  • Employees who are given company vehicles as a benefit of their particular job.

In most cases, the organization determines which employees to assign a company vehicle and if any employee who is assigned a company vehicle is allowed to drive it outside working hours, but even then he/she should also adhere to the company’s vehicle policy.

Requirements to drive a company car

Employees are only allowed to drive a company vehicle if:

  • They have a valid driver’s license, and
  • They have a good driving record for at least a number of years. This means that they must not have been arrested due to committing a traffic offense or held liable for causing a traffic accident.

Driver’s responsibilities

A company vehicle policy has rules which govern drivers who drive a company vehicle. Some of these rules include:

  • The driver must drive safely and only when he/she is sober;
  • The driver must obey traffic laws and respect fellow drivers;
  • The driver must keep records of all driving-related expenses like toll fees and fuel costs;
  • The driver must report any damages or concerns about the vehicle to the person in charge of the fleet.
  • If the driver’s license of an employee is suspended, they should report the matter to the person in charge of the company’s vehicles.
  • A person is also required not to drive a company vehicle when fatigued, sick or feeling visually impaired.

Traffic accidents

If an employee is involved in an accident with a company vehicle, they should contact their supervisor immediately. Most company vehicle policies demand their employees not to accept any responsibility or guarantee payment to the other party involved in the accident if the company does not authorize them. Also, employees are required to follow legal guidelines when exchanging information with the other driver and call Police in case the accident is serious.

Company’s obligations as per company vehicle policy

A company vehicle policy requires an organization to:

  • Ensure that all vehicles are safe to drive before being assigned to employees;
  • Schedule regular maintenance to ensure that the vehicles are in good condition;
  • Provide a copy of the company vehicle policy to all employees assigned company vehicles, and
  • Ensure that all company vehicles are insured with a reliable insurance provider.