Things To Settle First Before Lending Company Cars

handing a key
  • Ensure adequate insurance coverage and liability for employee drivers. 
  • Set qualifications for who can drive company cars and review driving records. 
  • Appoint a dedicated maintenance team or use professional services for repairs and upkeep. 
  • Install security locks to protect from theft and unauthorized access. 
  • Regularly review and update policy to keep up with changing circumstances. 

Providing company cars to your employees is an excellent investment that can benefit both your business and your employees. Company cars not only improve employee mobility and productivity but can also serve as an effective marketing tool for businesses. However, before lending company cars to individuals in your company, here are some essential things that you need to settle first.

Insurance and Liability Coverage

Before lending company cars to employees, it is vital to ensure that your insurance policy covers them adequately. Check with your insurance provider to confirm if your policy includes coverage for employee drivers and the specific risks that come with it. Also, it would be best if you considered who will be held liable in case of an accident involving one of your employee drivers. Here’s a rundown of each thing you need to consider:

Have you taken into account who will be driving your company cars?

When it comes to lending out company cars, it is important to ensure that your insurance provider’s policy adequately covers them. It is essential to take into account the number of drivers that will be using the vehicles, as well as any associated risks. Furthermore, if an accident involves one of your employees, you should determine who will be liable.

Does your insurance policy cover all potential liabilities?

Another important consideration when providing company cars is the potential liabilities associated with them. It is essential to check if your insurance policy covers any possible issues related to faulty vehicles or negligent drivers. Additionally, it is also worth considering what kind of coverage is provided for any damage that might occur as a result of an employee driving a company car.

Are you aware of any local laws about liability coverage?

When it comes to settling the issue of liability coverage for employee drivers, it is crucial to be aware of any local laws and regulations that might be applicable. It is also essential to understand the various types of coverage that are available, such as general liability, property damage, personal injury protection, and comprehensive insurance.

car key on top of auto insurance document

Qualifications and Driving Record

Before lending company cars to employees, you need to set the criteria for who qualifies to use them. You can select a minimum driving experience and qualifications as well as a clean driving record.

It is also essential to check the driving record of all potential company car users to ensure they have a clean record and no infractions that may put the company at risk. For example, if an employee has a DUI or speeding violation on his/her history, they may not be allowed to use the company car.

If possible, it is also wise to ask for a copy of their driver’s license and make sure that the information matches your records.

woman checking a male applicant's driving record

Maintenance and Repairs

Company cars need regular maintenance to ensure their safety and reliability. Before lending company cars, ensure that you have a maintenance plan in place to carry out scheduled maintenance and repairs. You can also appoint a dedicated maintenance team or use the services of a professional company that offers maintenance and repair services. Here are some professionals you should contact:

Auto Mechanics

Auto mechanics are essential when it comes to providing and maintaining company cars. They can help identify any problems with the vehicles and provide timely maintenance services to ensure that they are always in top condition. Auto mechanics can also help diagnose any issues that may arise during the lifetime of your vehicles, such as engine issues, transmission problems, or brakes.

Car Locksmiths

Car locksmiths are a valuable resource when it comes to ensuring the safety and security of company cars. An experienced car locksmith can provide services such as key duplication, lock repair, and rekeying. They can also install high-security locks on your vehicles to protect them from theft or unauthorized access.

Professionals Who Specialize in Auto Body Services

Professionals who specialize in auto body services can help ensure that your company cars remain in good condition. These professionals offer a variety of services, such as painting, detailing, dent repair, and glass replacement. They are also knowledgeable about different materials used for car bodies and can recommend the best ones to use according to your budget.

Providing company cars to employees can bring significant benefits to your business, but it is essential to have a solid plan in place before lending them out. By considering all the factors above, you can ensure that your company cars serve their intended purpose while keeping your employees and company assets safe. Remember to review and update your policy regularly to keep up with changing circumstances and ensure that your company continues to benefit from the use of company cars.

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