What is the Law About Employees Driving Their Own Car?

April 12, 2023 - 10:16 am - 3 min read

Understanding the Legalities Involved in Employees Driving Their Own Car

There are certain situations when an employee may need to use their personal vehicle for work-related purposes. It could be to run errands, meet clients, or attend business meetings. In such scenarios, employers may find it beneficial to allow their employees to use their own car instead of providing them with a company vehicle. However, the question that arises is, what are the legalities involved in employees driving their cars for work? This article aims to shed some light on the matter.

Factors to Consider When Allowing Employees to Drive Their Own Cars

Employers must consider various factors before allowing their employees to use their own cars for work. One of the most critical factors is insurance coverage. The employer must ensure that the employee’s car insurance covers driving for business purposes. If not, the employer can purchase non-owned auto liability insurance to protect both the employee and the company in case of an accident.

Another essential factor to consider is liability. Employers must ensure that their liability insurance covers any damages or injuries caused by the employee while driving for business purposes. It is also essential to have a clear policy in place outlining the expectations of the employee when using their car for work-related tasks.

Employee Liability for Accidents While Using Their Own Car for Work

If an employee is involved in an accident while using their car for work-related tasks, various factors determine their liability. If the employee was following the employer’s instructions and using the car for a work-related task, the employer would be responsible for any damages caused. However, if the employee was using their car for personal errands during work hours, it would be their personal insurance that covers the damages.

Limiting Liability with a Clear Vehicle Use Policy

To protect themselves from liability, employers must have a clear policy in place outlining the acceptable use of employee vehicles for work-related tasks. The policy should clarify what tasks qualify for driving reimbursement, ensure that employees have adequate insurance coverage, and outline the employee’s responsibilities when using their car for work.


In conclusion, allowing employees to use their cars for work-related tasks can be a cost-effective solution for many employers. However, implementing clear policies and ensuring sufficient insurance coverage must be a priority to protect both the employee and the employer from liability. Employers must also ensure that employees follow safe driving practices to minimize the risk of accidents. By implementing appropriate measures, employers and employees can take advantage of this option while minimizing any legal risks.

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