Driving Company Vehicles Policy


Driving Company Vehicles Policy, Therefore What You Need to Know 

Driving Company Vehicles Policy

If your business offers company cars to its employees in order to reduce expenses and increase productivity, it is essential to create a comprehensive policy that explains how the cars should be used and safeguard your investments.



Driving a company vehicle comes with significant responsibilities and certain regulations that need to be followed. 


This article will cover the basics of a driving company vehicles policy. We will go over relevant laws, driver responsibilities, company car rules for employees, and other related topics. This comprehensive guide will help both employers and employees understand the ins and outs of managing and driving company vehicles.


Laws for Driving a Company Vehicle

Different countries and jurisdictions have specific laws governing the use of company vehicles. These laws can include regulations on driver’s licenses, insurance, taxation, and vehicle maintenance. Both the company and the employee need to understand these laws. This will help them comply with the law and avoid legal problems.


What are employee responsibilities for a company car?

When driving a company vehicle there are responsibilities you must ensure your staff abide by. These include:

1. Compliance with traffic laws

It’s obvious, but sometimes the obvious needs to be stated when ensuring you are covering your business. But, employees who drive a company vehicle must follow all traffic rules. 

This includes speed limits, traffic signals, and other road signs. Failure to comply can result in fines, and legal issues, or can even cost any driver their job. 

So who’s responsible for driving fines and points? 

Ultimately the driver of the vehicle is responsible for any driving fines that occur in a company car. – However, it is the employer’s responsibility to ensure the vehicle is driven safely and is roadworthy. So if it can be proven that the company has been negligent in taking care of this, it could be argued that the employer is liable. 


2. Vehicle maintenance

Regular vehicle maintenance is essential for both safety and long-term cost-efficiency. Employees should perform routine checks on tires, brakes, and other essential parts. They also have a responsibility to keep the vehicle clean and ensure it is in good working order. This is especially true if the vehicle is used by multiple people in the business. 


3. Reporting accidents

In case of an accident or damage to the company vehicle, employees must report the incident as soon as possible. They should provide their supervisor or manager with all necessary information and documentation. Making sure these documents are accessible and safely stored is critical for insurance and repair. 


4. A Car Policy for Employees

A car policy for employees is a document outlining the rules, regulations, and guidelines for using company vehicles. 

This document can also be called a Vehicle Policy and Procedure Manual.


Why do you need a driving company vehicles policy? 

A company car agreement is a contract that establishes the conditions for employees who are eligible to have access to a company car. It outlines the guidelines for the proper use of the car and details the consequences for misuse. 

Additionally, this agreement strives to ensure that the use of company vehicles adheres to BVRLA standards and is used with care.


What Should a Company Vehicle Policy Include?

The car policy for employees typically covers various aspects, such as:


1. Eligibility requirements

Outlining which employees are allowed to use company vehicles and the necessary qualifications or licenses they must possess.

2. Vehicle maintenance

Defining the responsibilities of employees in maintaining company vehicles, including regular inspections, servicing, and repairs.


3. Fair wear and tear

Wear and tear comes with driving all vehicles. 


The BVRLA has outlined their expectations for the condition of a company car in relation to its age, mileage, and general state. This includes having the correct paperwork, a full set of keys, and all features running properly. The interior and exterior should show only minor wear and tear, with no major damages.


4. Authorised purposes

Specifying the acceptable use of company vehicles for work-related tasks and any restrictions on personal use.


5. Insurance cover

Insurance coverage provides information for employees driving company vehicles. It also outlines the process to file claims in the event of an accident or damage.


6. Authorised drivers

Should clarify which employees can use the car and the policy for extended family use. 


7. Fuel and expense reimbursement

Explaining the processes for tracking and reimbursing fuel costs and other work-related expenses. 


Employee Use of Company Vehicle

Can I Use Company Car for Personal Use?

Whether or not employees can use a company car for personal use depends on the specific company policy. Some companies allow limited personal use, while others may prohibit it altogether. It’s essential to understand and adhere to the company’s guidelines regarding the personal use of company vehicles.


Authorised drivers

Only authorised employees should be allowed to drive a company vehicle. The company should have a clear policy regarding who can and cannot drive company vehicles. This is to ensure the vehicle remains insured and covers the company in the unfortunate case of an accident. 


Damage to Company Vehicle Policy UK

In the UK, company vehicle policies typically include provisions for handling damages to company vehicles. Employees must report any damage quickly.

They may be responsible for the cost of repairs, depending on the situation. Companies should have a policy in place. This policy should outline the process for dealing with vehicle damages. It should also specify the responsibilities of both the employee and the company. 


Who Pays for Company Car Repairs?

The responsibility for paying for company car repairs may vary depending on the company’s policy and the circumstances surrounding the damage. In some cases, the company may cover the cost of repairs. While in others, the employee may be held responsible. –  Particularly if the damage was due to negligence or misuse of the vehicle.


Conditions for a Company Car

The conditions for a company car can vary depending on the organization and its specific policies. Some common conditions include:

  1. Employees must have a valid driver’s license and meet any other eligibility requirements.
  2. The vehicle must be used for authorized purposes only.
  3. Employees must comply with all traffic laws and regulations.
  4. Vehicles must be properly maintained and kept clean.
  5. Employees must adhere to any restrictions on personal use or authorised drivers.


Car Policy for Employees Document Sending and Storage

Companies should have a system in place for sending and storing the car policy for employees’ documents. This can include distributing the policy via email, an internal company website, or a physical copy. The policy should be easily accessible to all employees and updated as necessary. 

Storing and sending this document is essential. This ensures all employees can access the same data and comprehend the same regulations.

Therefore, a system that is properly managed keeps records of when documents were sent and received. This can be crucial in settling any disagreements. 

Using a document-sending and storage system such as DocFlite can help manage this part of the process. 



Understanding and following a driving company vehicles policy is crucial for employers and employees. By keeping to the guidelines outlined in the policy, companies can ensure the safety of their employees and vehicles. A proper policy will help protect and reduce the risk of legal issues or other complications.



1. What is the company car driver policy? 

A company car driver policy is a set of guidelines and regulations that govern the use of company vehicles by employees. This policy covers various aspects such as eligibility, maintenance, personal use, and accident reporting, among others.


2. What are the conditions for a company car? 

Conditions for a company car may include:

  • having a valid driver’s license
  • using the vehicle for authorised purposes only
  • complying with traffic laws
  • maintaining the vehicle
  • and adhering to any restrictions on personal use or authorised drivers.


3. Am I insured to drive a company vehicle? 

Insurance coverage for driving a company vehicle depends on the company’s insurance policy. 

In most cases, employees are insured while driving a company vehicle for work-related purposes. However, it’s essential to confirm the specifics with your employer.


4. Can employees use company vehicles for personal means? 

The use of company vehicles for personal means depends on the company’s policy. Some companies may allow limited personal use, while others may prohibit it entirely. Always consult your employer’s guidelines on this matter.


5. Can anyone drive a company car? 

Only authorised employees should be allowed to drive a company car. These include having a valid driver’s license and any necessary qualifications. The company should have a clear policy in place regarding who can and cannot drive company vehicles.


If you found this blog post helpful, you may be interested in similar blog posts such as:

How to start a cleaning business from scratch


What should you have by law if you lone work?What you should have by law for lone working





employee onboarding process flowchartThe employee onboarding process

More to explore

Virtual onboarding

Virtual onboarding

Mastering Virtual Onboarding: A Step-by-Step Success Guide Remote work has transitioned from a novelty to a staple in many industries. Understanding the

Construction software for small builders

Construction software for small builders

Streamline Your Construction Software for Small Builders Introduction to quoting software for small businesses Running a small business can be overwhelming, especially



01792 823 615

6 Ffynone Drive
Swansea, Wales SA1 6DD

Copyright 2023 Quote On Site Ltd, All Right Reserved. Company Registered in Wales No.10523883, VAT No. 372595859