Are Employees Covered by Insurance When They Drive the Company Car?
If you own a company vehicle and plan on allowing people other than you to drive the car, then you’re probably wondering one major thing: Will your employees be covered by car insurance when they drive the vehicle? Keep the following tips in mind when it comes to your company car and what its insurance will—or won’t—cover:
- Find out if your company car insurance policy will cover your employees if they’re driving for personal use. While some company car policies do cover personal use, some don’t. Figure out if yours does, and make sure all your employees are informed.
- Another common limitation that goes along with company car insurance policies is that many of them don’t cover a spouse or children driving the company vehicle. If your employees plan on letting their spouse or children drive the car, then they may need to purchase a separate policy so that their family is covered.
- If the company vehicle is actually a truck, then its policy might not include medical coverage. If one of your employees happened to be injured in an accident, those expenses (and lost wages) would not be covered by the policy.
Some questions to ask your insurance agent about your company car insurance policy include:
- Who in my employee’s family can drive the vehicle legally?
- What should my employee do if he or she gets into an accident?
- What kind of limitations are there in the policy?
As you can see, it can be quite confusing understanding all the ins and outs of a company car’s insurance policy. As the company car’s owner, it’s your responsibility to understand your policy inside and out and then relay that information to the employees that will be driving the vehicle.