Company vehicle policy template

Set the rules for who may drive company vehicles, how they are used and what happens after an accident.

Use it on screen
Company car policy templateEligibilityUseCare and costsIncidents🚘
How to use itUse the outline to write a policy that matches your insurance terms. Have every driver read and sign it before getting keys.

When you need the company car policy template

When employees drive company vehicles, clear rules protect people, vehicles and the business. They also prevent disputes about personal use, fines and fuel.

Check the policy against your insurance terms, since insurers often set conditions on who can drive.

15 items. Complete it digitally or on paper, whichever your team prefers.

Eligibility

Use

Care and costs

Incidents

How to use the company car policy template step by step

  1. Check your insurer’s requirements first.
  2. Keep driver records up to date.
  3. Use inspection and accident forms in each vehicle.
  4. Review fines and incidents monthly.
  5. Update the policy when vehicles or rules change.

A real-world example

A pest control company lets technicians take vans home but forbids personal use beyond the commute. The policy requires a pre-trip check each morning, hands-free calls only, and an accident report within 24 hours. Each technician signs it before receiving keys.

What the company vehicle policy protects you from

A business can be held responsible for crashes caused by employees driving its vehicles, so a policy that sets driver standards and phone rules is part of managing that risk. Personal use of a company car is generally a taxable fringe benefit, which is why the use section matters to payroll as well as to safety.

A filled-in company vehicle policy

Eligible drivers Inspectors licensed 3+ years, no major violations in 3 years; Prairie Home Inspections, Omaha
Record checks At hire and every 12 months, as the insurer requires
Use Business and commute; personal trips allowed and logged
Passengers Coworkers and clients only
Phones Hands-free calls only, no texting
Fines Driver pays traffic and parking tickets
Incidents and sign-off Call office within 1 hour, report within 24 hours; signed by Jada

Personal trips are allowed but logged, because the value of personal use is generally taxable to the inspector and payroll needs the mileage. The passenger limit keeps the car within what the insurer agreed to cover.

Where the company vehicle policy trips people up

Customizing the company vehicle policy

Sales teams on the roadAllow limited personal use with a simple log, and set clear rules for mileage records and tax reporting.
Trades and service crewsKeep vans for work and commuting only, and add rules for tools left inside overnight and where vans may be parked.
Pro tipAsk drivers to take four photos of the vehicle, one per side, at pickup and return. It settles damage questions in seconds.

Questions about the company car policy template

Can employees use the car privately?

Only if your policy and insurance allow it.

Who pays fines?

State it clearly. Wage deductions are restricted, so get advice.

Is commuting work time?

Usually not, but there are exceptions. Get advice for your situation.

How often should records be checked?

As your insurer requires.

Can employees bring family members along in the company car?

Only if the policy allows it, and many businesses limit passengers to coworkers and customers. Check your commercial auto policy first, because coverage for non-employee passengers and for personal trips varies. Write the passenger rule in plain words so a driver does not have to guess.

How should we handle charging for an electric company car at home?

Pick one method and write it down: a reimbursement based on charging sessions logged by the charger or a flat monthly amount set from typical use. Public charging on the road can go through the fuel card or an expense claim. The method should be simple enough to check each month.

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Know who worked when

Use the company car policy template for the record you need today. To see who clocked in, and when, book a demo of EZTime.

Disclaimer: This template is general information, not legal advice. Employment rules differ by state and city and change over time. Have a qualified employment attorney or HR professional review it before you use it.