Company Car Policy Template | Free Download

Purpose

[Company Name] provides vehicles to support employees in performing official work that requires regular travel. This policy explains the rules for the allocation, use, and management of company-provided cars.

Eligibility & Scope

This policy applies to employees who require a company vehicle to perform their job duties. Eligibility is based on business need, operational requirements, position level, performance, or tenure. You may be eligible if:

• You're employed under an official agreement with [Company Name].
• Your role involves regular official travel or driving more than [Number of kilometres] per month.
• Vehicular travel is a primary requirement of your position.
• A company car is part of your assigned job benefits.
• You hold a valid driving licence and a clean driving record, with no major traffic violations or at-fault accidents for at least [X] years.

Types of Company Vehicles

The company may offer qualifying employees one of these categories of vehicles:

• Company-owned vehicles
• Company-leased vehicles
• Pool vehicles assigned for official use

The specific vehicle depends on role requirements and availability:

• Executive vehicles: luxury or high-end models for senior management
• Standard vehicles: mid-range models for sales and field staff
• Specialty vehicles: for specific needs, such as transporting equipment

Vehicle Allocation

• Employees apply through HR or their manager to request a company car.
• Applications are reviewed based on role requirements, business needs, eligibility, and vehicle availability.
• An authorized company representative approves the allocation.
• Once approved, the employee receives the vehicle and the required documents.
• The employee must acknowledge receipt of the car.

Usage Guidelines

Employees allotted a company vehicle should follow these guidelines for responsible, approved use.

Permitted Use

• Use the vehicle for official work travel approved by your reporting manager.
• Use it for personal purposes outside working hours, but only with prior approval.
• Personal use must never interfere with business operations or official responsibilities.

Restricted Use

• No one other than the authorized employee or driver may use the vehicle.
• Avoid excessive personal use or using the vehicle for anything unrelated to business needs.
• Never use the vehicle for illegal, unsafe, or unapproved activities that break company rules or applicable guidelines.

Fuel & Expense Policy

To get reimbursed for vehicle expenses:

• Fuel for official travel is reimbursed under company guidelines.
• Personal fuel isn't reimbursed unless specifically approved.
• Keep and submit the required expense records for reimbursement and tax purposes.

Maintenance & Servicing

• The company covers regular maintenance and scheduled servicing of company vehicles.
• Vehicles must be serviced on time, in line with manufacturer recommendations or company instructions, at an authorized service center or wherever the company specifies.
• All company vehicles must meet applicable state transport regulations and safety requirements.
• Registrations and insurance must be renewed on time so the vehicle is never out of use.
• Report any mechanical issues, damage, or breakdowns to HR or the designated team immediately.
• Get prior approval for major repairs where applicable.

Driver Responsibilities

Employees assigned a company vehicle are expected to use it responsibly. You must:

• Hold a valid driving licence for the assigned vehicle category.
• Follow all traffic laws and local driving regulations.
• Drive safely and responsibly, and only when fit to do so.
• Keep a clean driving record and inform HR if your licence is suspended or revoked.
• Keep the vehicle clean, secure, and in usable condition at all times.
• Carry the vehicle documents and proof of insurance while driving.
• Avoid smoking inside the vehicle.
• Never lease, sell, lend, or allow unauthorized people to drive the car.
• Never leave the vehicle unlocked or unattended.
• Drive sober, and avoid alcohol or drugs that impair judgment.

Accident, Damage & Insurance

Follow these steps during an unforeseen event:

• All company vehicles are covered under company-arranged insurance.
• In the event of an accident, damage, theft, or loss, inform HR immediately so insurance support can begin.
• Exchange information with other parties involved, as legally required.
• Notify local authorities of serious accidents, as required by law.
• Submit all necessary details and documents for insurance or internal review.
• Cooperate fully during insurance claims or internal investigations.
• Don't accept responsibility or promise payment to anyone involved unless the company authorizes it.

Traffic Violations

Traffic fines and penalties incurred while the vehicle is in use are the driver's sole responsibility. Repeated violations may be reviewed by management and could lead to disciplinary action.

Parking & Toll Charges

Parking and toll charges for official travel are reimbursable as per policy. Charges incurred during personal use are not.

Exit/Transfer Policy

A company vehicle must be returned when an employee resigns, is terminated, changes roles, or when the vehicle lease or scheme ends. The company may also require the vehicle's return if policy conditions or maintenance standards aren't met.

• Return the vehicle in reasonable condition, allowing for normal wear and tear.
• Clean the vehicle and remove all personal belongings before returning it.
• Hand over all keys, documents, accessories, and items issued with the vehicle.
• The vehicle will be inspected for damage or excessive wear upon return.
• Any outstanding costs, damages, or charges may be deducted from the final settlement, where applicable.
• Return terms may vary depending on whether the vehicle is company-owned or leased, following the applicable scheme conditions.

Policy Violations & Disciplinary Actions

Failing to comply with this policy leads to disciplinary action, based on the nature and severity of the violation and in line with the company's disciplinary policy.

Warnings (Verbal or Written)

Given for minor or first-time violations, such as:

• Repeated traffic fines while using the company car
• Allowing unauthorized people to drive the vehicle
• Using the vehicle without approval
• Not following reporting or documentation rules

Loss of Car Privileges

Applies when violations continue after a warning. Company car access may be removed, temporarily or permanently, and the employee may no longer be eligible to use a company vehicle.

Suspension, Demotion, or Reassignment

Applied in cases of serious misconduct, such as leasing or using the company car for personal financial gain, misuse resulting in damage or legal liability, or serious negligence or repeated non-compliance. The employee may be reassigned to a role that doesn't include company vehicle eligibility.

Termination and Legal Action

Applied in cases of severe or unlawful violations, such as causing an accident while under the influence of alcohol or drugs, intentional misuse that creates major financial or legal risk, or any action that breaks the law or seriously harms the company's interests. The company may take legal action where necessary.

Policy Review

The company reserves the right to revise this policy. Any changes will be communicated to employees promptly.