Car Policy

Five areas that your Car Policy should cover.

A company car can be a great motivator for employees, particularly when the company car policy allows them to configure the vehicle to suit their requirements. In all cases, however, the rules governing aspects such as liability, insurance, maintenance, validity, etc. must be clear.
Below are the five most important areas that your car policy should cover.

1.     General provisions

  • Who is eligible for a company car?
  • What are company cars to be used for?
  • What vehicles, makes and models are suitable for your company’s requirements?
  • Are there restrictions on the choice of vehicle, or are employees to make their own decision on the basis of a benchmark vehicle?

2.    General terms of use

  • Are the vehicles to be used solely for business, or can they also be used privately?
  • What happens if the vehicle is not available, for example because it is undergoing repairs?
  • What information must the employee provide to the employer (previous loss of driving licence, accidents, claims, etc.)?

3.    Cost of vehicle provision

  • Which costs are to be borne by the employer and which by the employee?
  • How is the vehicle to be insured and what is the insurance to cover?
  • How high is the excess?

4.    Rights and obligations

  • What are the employee’s obligations in the event of an accident or damage?
  • What are the consequences of failing to comply with the agreed policy?

5.    Validity of the car policy

  • What is the term of the car policy and what happens if the policy is amended?
  • Does the car policy have to be signed?
  • How are changes to be announced?

Your car policy should also be valid and up to date for all employees. We recommend that you review your car policy once a year.

ALD Automotive can help you draw up your car policy and adapt it as required. Simply contact us.