The Company Car Policy provides guidelines for employees using company-assigned vehicles. It defines eligibility, prerequisites for driving, driver obligations, and procedures following accidents. The policy emphasizes safe driving, proper vehicle maintenance, and the importance of adhering to legal and company standards.
This company car policy template is ready to tailor to your company’s needs. Use this as a starting point when creating your employment policies.
The company car policy should include:
Our company car policy describes our guidelines for using company cars. A “company car” is any type of vehicle our company assigns to employees to support their transportation needs for their jobs. Company cars belong to our company and we want to make sure our employees use them properly.
This policy refers to all of our employees who are eligible to receive a company car and those who drive one as part of their daily job duties.
Employees who are eligible to be assigned a company car fall into three categories:
In most cases, our company will determine which employees will be assigned company cars. Employees who aren’t assigned company cars but believe they need one may discuss this with their supervisor or consult with our [Human Resources (HR) department.]
Employees are permitted to drive their assigned company cars outside of working hours, but they must always abide by this policy.
We retain the right to revoke or assign company vehicles at our discretion.
Our employees are only allowed to drive a company car if they:
Employees will need to complete a form and submit a copy of their driver’s license to be eligible for a company car.
Employees with disabilities may also be eligible for company cars and parking spaces. We’re also willing to make reasonable accommodations to facilitate their company vehicle use. Employees who take medications that severely affect their sense of orientation, vision or reflexes may not be permitted to drive a company car.
We expect employees who drive company vehicles to follow rules. They should:
If employees have their driver’s licenses suspended or revoked, they must inform our [HR department.] We’ll reassign their company car until they become eligible to drive in accordance with our policy (maintaining a clean driving record for at least [X years]).
Employees who are fatigued and/or sick should avoid driving if they feel their driving ability is impaired. If sickness occurs during a business trip that requires the use of a company car, employees should take regular breaks while driving or ask HR for overnight accommodations, if needed.
If employees are involved in an accident with a company car, they should contact our HR department immediately, so we can get in touch with our insurance provider. Employees shouldn’t accept responsibility or guarantee payment to another party in an accident without company authorization.
Employees should follow legal guidelines for exchanging information with other drivers and call local police if accidents are serious.
We want to ensure that all our employees are safe at work and preserve our company’s legality. For these reasons, we’ll:
Drivers are responsible for bringing in their company cars for any maintenance our company schedules.
We keep records of our fleet with manufacturing date and mileage. We will retire any car that’s deemed too old or too high in mileage.
We are not responsible for:
Cars are harmful to our environment and costly to use. We’ll try to provide employees with eco-friendly cars when possible. We also expect our employees to use their assigned company cars sensibly, considering environmental impacts. Examples of instances when using company cars isn’t necessary:
Employees will face disciplinary consequences if they don’t follow this policy’s rules. For minor offenses, like allowing unauthorized people to drive a company car or receiving more than [two] fines, we may issue reprimands and ultimately revoke the company car.
We may terminate an employee and/or take legal action as needed for more serious offenses. That can include leasing out a company car for personal financial gain, or causing an accident while driving intoxicated.
| Disclaimer: This policy template is meant to provide general guidelines and should be used as a reference. It may not take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor Workable will assume any legal liability that may arise from the use of this policy. |
What is an example of a company car policy? The policy sets rules for employees using company vehicles, covering eligibility, driver obligations, and procedures after accidents. Why is a company car policy important? It ensures safe and responsible use of company vehicles, protects company assets, and clarifies expectations for employees. What should a company car policy include? It should outline eligibility criteria, driver obligations, and consequences for policy violations. How should employees handle accidents in a company car? They should immediately report to HR, follow legal guidelines, and avoid accepting responsibility without company authorization. Are employees allowed to use company cars for personal tasks? Employees can use assigned cars outside working hours but must always adhere to the policy's rules.
