A company vehicle policy, or a company car policy, is an agreement between the company and its employees that provides a guideline for using company cars.This policy must cover the rules for eligibility, conduct, and possible penalties for an employee using a company vehicle, as well as outlining the steps the employee should take in the event of a serious situation, such as in an accident.

Outline here what factors are necessary in order to permit an employee to use a company car, as well as anything that would prevent them from being allowed to use one.In general, the employee's work must entail frequent travel in order for them to qualify for a company car.Common qualifiers include:Prerequisites include:

This part of the policy should dictate the process employees go through in order to be provided a company car. This is typically handled in a company by the Human Resources (HR) department.The standard process includes:

Employees with disabilities should not be disqualified from using a company car without proper consideration. Many people with disabilities are able and permitted to drive, so special considerations should be afforded by the company for such employees.

This section of the policy should outline the company rules that employees need to be aware of and follow when using a company car.

It should be made clear that local laws regarding driving and the vehicle are to be followed at all times by the employee.

Safety considerations should be held as top priority—along with following local law. Safe driving rules must always be followed by the employee. These considerations include:

This section should cover the scope of when an employee is permitted to use the vehicle. This is a company decision that factors in necessity of travel, availability of other options, costs, environmental concerns, and more.One important decision to make is whether to allow the vehicle to be used for personal use outside of working hours, to allow it for commuting between work and home, or to restrict it to only for business use. Though, personal use of a company vehicle is generally accepted as the standard practice in most cases.Regardless, it should also be made clear that the vehicle may only be used by the employee, and not sold, lent, or rented out to another driver, even other family members, unless required by an emergency.

The maintenance of the vehicle becomes the responsibility of the employee when given as a company vehicle. The main responsibility for the company in this regard is scheduling appointments for vehicle maintenance. For the employee, the responsibilities include:

There are other considerations that don’t fit into the above sections, listed below. There are also sure to be additional aspects to consider for companies using company vehicles for uncommon purposes.With that said, the following may also be added to the policy:

It should be made explicitly clear what disciplinary actions will happen should an employee use the vehicle in a way that breaks the rules outlined in this policy. A range of actions should be clarified, ranging from a verbal warning and retraction of company car privileges to termination and legal action. Though, it’s not necessary to outline what actions will lead to each disciplinary action. This allows the Human Resources department, the business owner, and other decision makers to use their discretion while choosing how to respond to an incident.

It’s essential for this policy to outline the steps to take should a car accident take place. The absolute priorities in the event of an accident are ensuring the safety of everyone involved and complying with local laws.The steps that should be present in this policy should include:

Clarify what the company’s responsibilities are in regards to the company vehicle. These responsibilities commonly include:On the other hand, the company should not be responsible for: