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.
