Health and Safety
There is a misconception that if a driver opts
out of a company car scheme then the employer
is released from any responsibility for that driver’s
health and safety. It simply isn’t true.
The employer’s liability is no different
for employee owned vehicles, which treats a car
used on company business as a ‘place of
work’.
As a consequence, companies
usually draw up policies to ensure that any driver
using their own vehicle on company business has
a clear statement on; number of hours that they
can drive, the condition of the vehicle being
used, insurance cover required to use the car
for company business and any other legal or safety
concerns.
Issues that must be understood by drivers may
include checking driving licences, guidelines
on the use of mobile phones and more commonly,
the age and overall suitability of the car. For
example, a sales representative carrying product
samples for client visits would need a car that
is fit for purpose and suitable for company image.
Motor Insurance
The Road Traffic Act 1988 requires all motorists
to be insured against their liability for injuries
to others including passengers and for damage
to other peoples property resulting from use of
a vehicle on the road.
If opting out of the company
car, the onus falls onto you to ensure that the
vehicle is correctly insured. Factors for consideration
include the policy class i.e. what classification
of business driving is required, whether you’ll
be carrying passengers or clients and whether
you are required to drive vehicles other than
your own as part of your job responsibility.
Company car insurance policies
tend not to penalise the young or poor risk, but
drivers opting out may find that in some cases
they are effectively uninsurable for the prestige
vehicle they used to drive. Many insurance companies
have started applying the drivers’ company
no claims allowance to their private insurance
thus helping to lower the premiums. Drivers must
also consider the less obvious charges such as
excesses, short-term hire costs and accident management.
