Company Car Policy Template


Granting employees a company car is intended for work purposes only, for those who require a company car per their daily responsibilities, and for those who are to receive a car as a benefit.

Our company car policy clearly outlines who is eligible to receive a company car, what prerequisites are required, what rules must be followed, what disciplinary action will be taken if rules are broken and more. If you have any questions regarding the company car policy, speak to your direct manager or HR.

Our company car policy aligns both the employer and the employee on the rules both parties must abide by, this will help to avoid accidents and miscommunication to ensure safety and happiness across the board.

Use our company car policy template as a starting point as you may need to change certain perimeters to fit  your company’s needs. We recommend legal counsel review your company car policy once complete to ensure compliance.

Company Car Policy Template


The following is the complete company car policy of ABC Productions in regards to its employees who may be granted the use of a company car and for those who drive a company car as per their job duties.

Policy details

An employee of ABC Productions may be granted a company car if they meet the following criteria:

  • The need to travel over 100 miles per year in order to meet with clients, partners or vendors.
  • A company car is indispensable in order to complete their daily job, such as truck drivers and delivery drivers.
  • If an agreement was reached between the CEO and employee to be given a company car as a benefit/incentive.

ABC Productions has the final say in which employee(s) will be granted a company car. An employee who believes they should have been granted a company car but were not, should consult with the HR department.

An employee who has a company car is allowed to drive the company car outside of work hours, however they are required to abide by our company car policy at all times.

Additionally, ABC Productions has the right to revoke or re-assign a company car at our discretion.

Prerequisites to driving a company car

Employees of ABC Productions are only allowed to drive a company car if they:

  • Hold a valid driver’s license.
  • Have a spot-free driving record for at least 2 years, meaning they were not at fault of a car accident or were not arrested on charges violating car and traffic laws, such as driving under the influence.

Note: All employees are required to complete a form and to also submit a copy of their driver’s license in order to become eligible to receive a company car.

Company car employees with disabilities

ABC Production will make reasonable accommodations in order to facilitate employees with disabilities, additionally employees with disabilities are eligible for company cars and parking spaces. However, employees who are on medication that severely affects their reflexes, vision or orientation senses are not permitted a company car.

Obligations of the driver

ABC Productions expects their employees with company cars to follow the rules. Such as:

  • Respect and follow all traffic laws and fellow drivers.
  • Will not use a phone or text while driving.
  • Never drive under the influence.
  • Will not allow an unauthorized driver(s) to use their company vehicle unless it is an emergency.
  • Will not lease, sell or lend a company car.
  • Will not leave the company car unlocked, unattended or parked in a dangerous area.
  • Will not smoke in the company car.
  • Report damages or problems with their company car to HR in a timely manner.
  • Document all driving expenses, such as fuel and tolls.
  • Regularly check the car to ensure all is operating functionally, such as the fuel, tire pressure and car fluids.
  • Will not double park, block entrances or commit traffic violations which can lead to fines.
  • If applicable, will wear glasses or contacts while driving.

If an employee has their driver’s license suspended or revoked, they are obligated to inform HR. As a result, their company car will be reassigned until said employee is eligible to drive again per our policy (maintaining a spot-less record for at least two years).


If an employee of ABC Productions is involved in a car accident with the company car, they must immediately contact our HR department. Under no circumstance should an employee accept responsibility or guarantee payment during an accident, unless ABC Productions authorizes it.

Employees are required to follow all legal guidelines in exchanging information with other drivers and should call the police if the accident is serious.

Obligations of ABC Productions

ABC Productions strives to create a safe work environment for all employees and that extends to the company car, therefore we will:

  • Ensure company cars are safe to drive before we assign them.
  • Schedule periodical maintenance so all cars remain in excellent condition.
  • Provide employees with a copy of our company car policy if they are assigned a company car. (Note: this company car policy is available at all times in the employee handbook of our employee app, Connecteam).
  • Insure company cars with a reliable insurance provider.

We keep detailed records of our company cars with manufacturing date and mileage. A car that is found too old or with high mileage will be “retired”.

We are not responsible for:

  • Paying fines an employee(s) received while driving company cars that they are responsible for, such as breaking the speed limit.
  • Paying for an employee to make bail if arrested while driving a company car.

Disciplinary Consequences

If an employee does not follow our company car policies will face disciplinary consequences. If an employee commits a minor offense, such as letting an unauthorized person drive the company car, we might issue a reprimand and may revoke the company car.

ABC Productions will terminate an employee or may take legal action if a more serious offense is committed, such as selling the car for personal gain or causing an accident while driving under the influence.




Company Representative (Sign)


Company Representative (Print)





Applicant (Sign)


Applicant (Print)





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