Damage to Employee Vehicles While Driving on Bank Business

What are the employees’ expectations for damage caused in accidents while driving their personal vehicles on bank business? Will you pay for damage to their vehicle, or should the employee rely upon his own insurance? Will you pay his deductible?

Make your plan clear in your employee handbook to avoid misunderstandings. Send an annual reminder to all employees stating your bank’s policy on employee vehicle usage.

Here’s a sample letter you can use:

Dear Employee,

From time to time, it may be necessary for you to drive your personal vehicle on bank business. The purpose of this letter is to remind/advise you of our policy regarding such.

All employees using their personal vehicles for approved business travel will be reimbursed for such use at a rate of <$.xx> per mile. This fee is intended to repay you for your expenses in operating the vehicle, including the cost of gas, oil, tires, maintenance, and the cost of insurance.

We require that all employees who drive personal vehicles on bank business carry at least <$x00,000> of liability protection and uninsured motorist coverage. The purchase of “comprehensive” and collision insurance is at your discretion.

In the event of an accident, while you are driving on bank business, you should look to your own insurance to protect you and your vehicle.

Remember, the auto insurance you buy is what will protect you on or off company time. Our bank automobile insurance policy provides no coverage for your vehicle.

Should you have any questions regarding this memo, please see your supervisor.