How to Create a Company Vehicle Policy

Martin Lowenstein

January 2, 2023

When you decide to create a company vehicle policy for your business, there are several things you need to know. You’ll need to keep records of employees’ mileage, activities, and other information. In addition, you’ll want to provide a clean driving record for your employees. And, if you decide to restrict the personal use of company vehicles, you’ll have to consider the consequences of defying the policy.

Keeping a mileage and activity record for employees

If you own a fleet of company vehicles, you must keep a mileage and activity record for employees. This can be challenging, but with the right software, it can be done easily.

Using software to keep track of mileage and activities for employees can help your company avoid overpaying staff. Whether you’re a small or large organization, it’s important to reimburse employees as smoothly as possible.

One way to make this easier is to use a service that allows you to log mileage automatically and send reports to your supervisors for approval. Alternatively, you can use an odometer reading calculator to do the job for you. By automating the reporting process, you’ll have a more accurate picture of your expenses and won’t have to worry about manual data entry.

Providing proof of a clean driving record

If you are considering purchasing a company vehicle, you must provide proof of a clean driving record. This will help to lower your car insurance premiums, as a clean driving record indicates that you are safe and not at fault in an accident.

A driving record will contain information about traffic violations and accidents. These violations range from speeding to driving under the influence of alcohol. Each type of violation can impact your record and your insurance rates.

The most common violations are DUI, speeding, and failing to stop at a traffic light. You can also find a history of minor violations, such as failing to pay fines or using illegal devices in the car. Depending on the severity of the offense, these can become major violations.

You can request your driving records from the Department of Motor Vehicles. Most states allow you to do this for a small fee.

Limiting personal use

If you are considering allowing your employees to use your company vehicles for personal purposes, it is best to develop a policy that clearly defines what is and isn’t allowed. This will help you avoid the potential legal pitfalls of granting employees such access.

One of the most popular employee benefits is the opportunity to use a company vehicle for personal purposes. However, allowing employees to do so opens up a major legal risk for the business. For instance, the employer may be held liable if the driver causes an accident while using the vehicle for personal purposes. In addition, unauthorized use can depreciate the value of the vehicle.

The good news is that, in most cases, these risks can be avoided. You should have a clear and concise personal use policy and require drivers to sign a statement acknowledging the policy.

Your policy should also include a “reasonable” mileage definition and the possibility of allowing the vehicle to be used by the owner’s family. It’s a good idea to include an employee’s spouse in the contract so that there is a clear understanding of the policy.

Discrimination consequences of defying the policy

If your company allows employees to use a company vehicle, you must establish a clear policy that outlines the rules for using this vehicle. In particular, the company’s vehicle policy should apply during and outside work hours. It is also essential that you indicate the consequences of violating this policy. These consequences may vary depending on the violation. You should also ensure that your policy is in line with applicable laws.

Some companies will allow workers to use a company vehicle if the employee drives a certain number of miles in a year. Similarly, some will only give a vehicle to an employee who has proven that they need the company’s vehicle to do their job.