Employee Use Of Personal Autos

I have written about this in the past. It’s related to the non-owned auto insurance issue I wrote about several days ago.

Jane has been an employee of your company for many years. A good and faithful employee. On her way back from a meeting in the next city a truck kicks up a stone that breaks Jane’s windshield. Jane is now in your office asking you to pay for her windshield.

It’s a common occurrence. Many employees expect that you will pay for damage to their car while they are driving on company business. Some think you have insurance to cover it.

Would you pay it? What if the damage was $2,500 and Jane didn’t have collision insurance?

Put out a policy to set your employees expectations. Let employees know your policy by sending an annual reminder.

Here’s my suggestion:


Dear Employee,

From time to time it may be necessary for you to drive your personal vehicle on company business. The purpose of this letter is to inform  you of our policy regarding such.

All employees using their personal vehicle 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 company 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 company 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 company automobile insurance policy provides no coverage for your vehicle.

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


Many see my recommendation as harsh. I’ve just seen too many instances where employers have caused themselves great trouble by agreeing to pay for these accidents for their employees.