Writing a Comprehensive Company Car Policy

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Having a comprehensive company car policy is essential for any business, large or small. It is not just about protecting the employer from costly litigation if an employee is involved in an accident; it is also about ensuring that both employers and employees are aware of what is expected of them when using a company car. The Genie AI team, along with its community template library, can provide helpful guidance on how to create a robust and fair company car policy that adheres to the relevant laws.

Such policies should outline the expectations and responsibilities of the employee when using a company car, as well as making clear what rules must be followed. This helps to ensure that vehicles are used responsibly in accordance with applicable laws while also providing employees with peace of mind knowing they have been made aware of potential risks they face if they do not follow the rules.

By choosing Genie AI’s open-source legal template library, you will benefit from millions of datapoints which teach our AI what a market-standard policy looks like. And best of all - you don’t need an account to access this helpful advice! So why wait? Read on below for our step-by-step guidance and information on how to access our template library today!

Definitions (feel free to skip)

Goals and Objectives: Goals are broad aims or plans that businesses set out to achieve, while objectives are the specific steps or actions needed to reach the goals.
Eligible: Qualified or allowed to receive or take part in something.
Selection Process: A system for choosing or selecting something, usually based on specific criteria.
Criteria: The standards or requirements used to judge or make a decision.
Responsibilities: An obligation to do something, usually with a sense of duty or accountability.
Guidelines: Recommendations or instructions that provide direction or serve as a basis for decision-making.
Consequences: The result or outcome of an action or decision.
Misuse: To use something in an improper or unauthorized way.
Mileage: The number of miles traveled.
Expenses: Money spent on an activity or purpose.
Accidents: An unexpected and unintentional event.
Repairs: To fix or restore something that has been damaged or broken.
Return: To give back or bring back something.
Review: To examine or evaluate something.

Contents

• Establish the goals and objectives of the company car policy
• Identify who will be eligible for a company car
• Explain the selection process and criteria for obtaining a company car
• Outline the responsibilities of the employee
• Maintenance requirements
• Caring for the car
• Adhering to safety standards
• Establish guidelines for the use of company cars
• Define the consequences for misuse of company vehicles
• Provide a system for tracking company vehicles, mileage, and expenses
• Establish procedures for reporting accidents and repairs
• Describe how to report an accident
• Identify who to contact for repairs
• Discuss the process for returning a company car
• Describe the process for reviewing the company car policy
• Outline criteria for when a policy review is necessary
• Describe the steps for revising the policy
• Define the timeline for policy review

Get started

Establish the goals and objectives of the company car policy

• Define the purpose of a company car policy, such as outlining the responsibilities of employees who are given access to a company car and outlining the limits of use
• Determine which types of employees should be eligible for a company car, such as sales representatives, executives, or other employees with travel needs
• Establish financial parameters for the company car policy, such as outlining how much the company will pay for car-related expenses and outlining any restrictions for personal use of a company car
• Set safety expectations for drivers of company cars, including any requirements for driver training or background checks
• Outline any disciplinary action that may be taken if an employee violates the company car policy

Once you have established the goals and objectives of your company car policy, you can move on to the next step of identifying who will be eligible for a company car.

Identify who will be eligible for a company car

• Make a list of all the employees who might be eligible for a company car
• Consider factors such as job title, years of service, and other factors that might make some employees more eligible than others
• Decide which employees will actually be eligible for a company car and write it down
• Make sure the list of eligible employees is updated regularly
• When all eligible employees have been identified, this step can be checked off and the selection process and criteria for obtaining a company car can be explained.

Explain the selection process and criteria for obtaining a company car

• Outline the selection process and criteria for obtaining a company car. This should include factors such as job seniority, job responsibilities, length of employment, etc.
• Establish a review process for company cars, which should include regular reviews of the criteria for selection and the selection process.
• Ensure the selection process is transparent and objective.
• Provide a clear explanation of the selection criteria and process to all employees who are eligible for a company car.
• When you have outlined the selection process and criteria for obtaining a company car, you can check this off your list and move on to the next step.

Outline the responsibilities of the employee

• Establish a clear set of rules and expectations for employees who drive company cars
• Include requirements for drivers to maintain adequate insurance coverage and adhere to all laws
• Require drivers to use the vehicle responsibly, including refraining from using the car for personal errands and notifying the company of any traffic violations
• Require drivers to report any accidents or damage to the company immediately
• Outline the company’s expectations for proper maintenance of the vehicle, including fuel, oil, tires, etc.

When you can check this off your list: When you have written a comprehensive set of rules and expectations for employees who drive company cars.

Maintenance requirements

• Explain the expected maintenance requirements for the company car, such as oil changes, tire rotations, and other routine services
• Outline who is responsible for making sure these services are done and when they should be completed
• Establish a schedule for inspection of the vehicle, such as quarterly or semi-annually
• Specify whether the company will cover the cost of routine maintenance services or if the employee is expected to cover them
• Specify which types of repairs are covered by the company and which ones are the responsibility of the employee
• Explain the process for obtaining approval for and reimbursement of any expenses related to the maintenance of the vehicle

Once you have outlined the maintenance requirements, you can check this off your list and move on to the next step.

Caring for the car

• Establish a policy for how the company car should be treated when in use, such as refraining from eating, drinking, smoking, and transporting pets in it.
• Set rules for parking the car, such as in designated company parking lots or certain city streets.
• Specify who will be responsible for refueling the car and the type of fuel to use.
• Require that the car is locked when not in use.

When you have completed the steps above, you can check this off your list and move on to the step on adhering to safety standards.

Adhering to safety standards

• Ensure that all company cars meet the required safety standards as set by the local and federal government.
• Have all vehicles inspected by a qualified and certified mechanic on a regular basis.
• Establish minimum safety requirements for all company cars, such as seatbelts and air bags.
• Make sure that all company cars are equipped with the necessary safety features, such as brake lights and turn signals.
• Ensure that all drivers of company cars have valid driver’s licenses and have been trained in defensive driving techniques.
• Have all drivers of company cars take a defensive driving course on a regular basis.

You can check this off your list and move on to the next step when all company cars meet the required safety standards and all drivers have valid driver’s licenses and have been trained in defensive driving techniques.

Establish guidelines for the use of company cars

• Determine the purpose of the company car policy
• Establish guidelines for who is eligible to use a company car
• Create rules and regulations for the use of company cars
• Set expectations for when and how company cars should be used
• Define a process for reporting accidents and repairs
• Outline any applicable insurance policies
• Establish rules for fuel and maintenance
• Specify the types of vehicles that can be used
• Set a timeline for returning company cars
• Include a signature page for employees to acknowledge the policy

Once you have established the guidelines for the use of company cars, you can check this off your list and move on to the next step.

Define the consequences for misuse of company vehicles

• Set clear guidelines on what constitutes “misuse” of a company vehicle
• Establish consequences for misuse of a company vehicle, such as a verbal or written warning, suspension of company car privileges, or termination of employment
• Make sure that the consequences for misuse of a company vehicle are clearly communicated to employee
• Ensure that all employees who use a company vehicle or have access to a company vehicle are aware of the consequences for misuse
• When you are sure that all employees are aware of the consequences for misuse of a company vehicles, you can check this off your list and move on to the next step.

Provide a system for tracking company vehicles, mileage, and expenses

• Create a system for tracking company vehicles, mileage, and expenses, such as an Excel spreadsheet or an online tracking system
• Ensure that this system is maintained regularly, with all information being up-to-date
• Ensure that all users of company vehicles know how to use the tracking system, and are aware of their responsibilities in using it
• Set up a reporting procedure for completing and submitting records of vehicle usage, mileage, and expenses
• Set up a system for approving and processing vehicle reimbursement requests
• Establish a timeline for submitting mileage, expense, and other reports
• Establish guidelines and policies for reporting and documenting any accidents or repairs

You will know when you can check this off your list and move on to the next step when the system for tracking company vehicles, mileage, and expenses is established and all users of company vehicles are aware of their responsibilities in using it.

Establish procedures for reporting accidents and repairs

• Create a procedure manual and make sure all employees who drive company vehicles are aware of it and understand its contents.
• Establish a procedure for employees to report any accidents or damage to company vehicles.
• Establish a procedure for reporting repairs and maintenance of company vehicles.
• Make sure employees understand that they must report any and all accidents, damage, repairs, and maintenance to their supervisor and/or the responsible party.
• Ensure that all employees are aware of the details of the company car policy, including the procedures for reporting accidents and repairs.

Once all of the above steps are completed, you can check this off your list and move on to the next step - describing how to report an accident.

Describe how to report an accident

• Employees should immediately notify their supervisor or manager of any accident involving a company car, regardless of the severity.
• They should provide details such as the date, time, location and description of the accident.
• Employees should also take photos of the accident if possible.
• All accidents should be reported to the company’s insurance provider.
• When an accident is reported, the company car should be taken in for necessary repairs.
• Once all of the above has been completed, employees can check this step off their list and move on to the next step: Identifying who to contact for repairs.

Identify who to contact for repairs

• Contact your company’s fleet manager or designated repair shop for any repair needs
• Make sure to provide contact information, description of the issue, and the make and model of the car
• Ensure that any repair work is done in accordance with company policy and that all necessary documentation is completed
• You will know you can check this off your list when contact has been made with the fleet manager or designated repair shop and you have received confirmation that the repair will be taken care of in line with company policy.

Discuss the process for returning a company car

• Explain the requirements for employees who will be returning company cars
• Set out the notification procedure for returning company cars
• Outline the inspection process upon return of the company car
• Describe the process for returning company car keys
• Outline the procedure for returning company car documents
• Set out the procedure for the return of personal items left in the car

Once all of the above has been discussed and outlined in the policy, you can check this off your list and move on to the next step.

Describe the process for reviewing the company car policy

• Create a review team to review the existing car policy
• Have the review team meet and discuss the current policy
• Assess the effectiveness of the policy and identify areas that could be improved
• Make recommendations for changes to the policy
• Present the proposed changes to management
• Get approval from management to implement the new car policy
• Put the new policy into effect
• Check off this step when the new car policy has been implemented.

Outline criteria for when a policy review is necessary

• Identify any changes in the relevant legal and regulatory landscape that should trigger a policy review
• Monitor any changes in the company’s goals and objectives that should trigger a policy review
• Review the policy on an annual basis or whenever a new employee is assigned a company car
• Identify any changes in the company car fleet that should trigger a policy review
• Monitor any changes in the company car usage that should trigger a policy review
• Check that any changes in the company’s financial situation should trigger a policy review

Once all of these criteria for when a policy review is necessary have been outlined, this step can be checked off the list and the next step can be completed.

Describe the steps for revising the policy

• Gather a team of employees, supervisors, and managers to review the existing policy
• Make sure to include representatives from all departments to get a comprehensive view of the policy
• Identify any gaps or potential areas for improvement
• Draft a new version of the policy that addresses any identified issues
• Have the team review and discuss the proposed policy and make any necessary changes
• Once the team agrees on the revised policy, have it reviewed by legal counsel to ensure it is compliant with relevant laws
• Finalize the new policy and communicate it to all employees
• Monitor the policy for any necessary changes in the future and start the review process again as needed

Define the timeline for policy review

• Establish a timeline for when the company car policy should be reviewed and updated, such as annually or every two years.
• Decide who will be responsible for the review process, such as the company’s HR department or a designated employee.
• Document the timeline and review process in the policy.
• Once you have established the timeline and review process, you can check this off your list and move on to the next step.

FAQ:

Q: Does this policy need to comply with any specific regulations or laws?

Asked by John on July 8th 2022.
A: Absolutely. It’s vital that your company car policy is compliant with relevant regulations and laws. Depending on your jurisdiction, the specifics of the laws may differ. For example, if you’re operating in the UK then you will need to comply with the Road Traffic Act 1988 and The Vehicle Excise and Registration Act 1994, while in the US you would need to adhere to state and federal law. It’s also important to factor in any EU regulations that may apply, as well as industry-specific and company-specific regulations. It’s best to consult a lawyer with knowledge of the relevant regulations before writing a comprehensive policy.

Q: Is it necessary for our business to have a company car policy?

Asked by Sarah on August 15th 2022.
A: It depends on your particular business model and sector. If you are a B2B or Technology company, for example, then it is unlikely that you will need a company car policy as you may not have staff using company cars at all. However, if you are an organization that requires staff to travel in company cars for business purposes then having a comprehensive policy in place is essential. This will ensure that your staff are aware of the rules and regulations around safe driving and vehicle usage, as well as their liability should an accident occur while they are driving on behalf of the company.

Q: What are some of the key elements of a comprehensive company car policy?

Asked by Michael on October 11th 2022.
A: A comprehensive company car policy should cover all aspects of vehicle usage, including eligibility criteria for being able to use a company car, how vehicles should be used safely and responsibly, rules around maintenance and cleaning of vehicles, and rules around authorisation for journeys undertaken in the vehicles. Additionally, it should outline the liabilities of both employee and employer should an accident occur while an employee is driving on behalf of the company. Finally, it should set out the consequences for any breach of policy or misuse of vehicles by employees.

Q: How often should I review my company car policy?

Asked by Jessica on November 3rd 2022.
A: It is important to review your company car policy regularly - at least every 12 months - to ensure that it is still up-to-date with any changes in legislation or regulations that have been introduced since your last review. Additionally, if there have been any changes in your business or industry which may require amendments to the policy then these should also be reviewed and updated accordingly. Finally, if there have been any significant changes in technology which may affect how vehicles are used by employees (such as self-driving cars) then it is important to review your policy to ensure that these changes are adequately addressed.

Example dispute

Violation of Company Car Policy:

• The plaintiff may have a case if the company car policy was violated in some way, such as the company not providing adequate insurance for the car, or if the company provided an unsafe vehicle.
• The plaintiff would need to provide evidence of the policy violation, such as a copy of the policy, or other proof that the policy was breached.
• The plaintiff may be able to recover damages if they can prove that the breach of the policy resulted in some form of injury or financial loss.
• The plaintiff may also seek a settlement from the company for the violation of the policy, which could include an agreement for the company to pay for any damages caused by the breach.
• The court may also rule that the company must pay for any damages caused by the policy violation, including paying for medical expenses, lost wages, and other costs associated with the incident.

Templates available (free to use)

Company Car Policy

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