Company Car Policy Sample

Company Car Policy Sample

Published on June 8th, 2023

sample company car policy that you can use as a starting point. Please note that this is a general template and may need to be customized to fit your specific company's needs and policies. It is always recommended to consult with legal professionals or HR experts to ensure compliance with local laws and regulations.

[Company Name] Company Car Policy


The purpose of this policy is to provide guidelines for the appropriate and responsible use of company-provided vehicles by employees. This policy aims to ensure the safety of employees, protect company assets, and maintain compliance with applicable laws and regulations.


Company vehicles may be provided to employees based on job roles and specific business requirements as determined by the management. Eligibility criteria, including job positions and driving license requirements, will be outlined in the individual employment agreements.

Vehicle Usage

3.1 Personal Use: Company vehicles may be used for personal purposes with prior approval from the appropriate authority. Personal use should be reasonable and limited. Any personal use of company vehicles must comply with applicable tax laws and regulations.

3.2 Prohibited Use: The following uses of company vehicles are strictly prohibited:

a. Engaging in illegal activities or any activity that may harm the company's reputation.

b. Using the vehicle while under the influence of alcohol, drugs, or any impairing substance.

c. Using the vehicle for racing, off-road driving, or any other hazardous activities.

d. Transporting unauthorized passengers or hitchhikers.

e. Using the vehicle for commercial purposes not related to company business.

Vehicle Maintenance and Care

4.1 Maintenance Responsibility: Employees are responsible for maintaining the cleanliness and good working condition of company vehicles. Regular maintenance and servicing should be scheduled as per the manufacturer's recommendations.

4.2 Reporting Damage or Issues: Employees must promptly report any accidents, damages, or mechanical issues to the appropriate authority. Timely reporting ensures prompt resolution and minimizes the risk of further damage.

Insurance and Liability

5.1 Insurance Coverage: All company vehicles will be adequately insured by the company. Employees must comply with insurance requirements and report any accidents or incidents involving the vehicle to the appropriate authorities.

5.2 Liability: Employees using company vehicles are responsible for their actions and will be held liable for any violations of traffic laws, accidents caused due to negligence, or damages incurred during unauthorized activities.

Return of Company Vehicles

6.1 Termination or Change of Employment: Upon termination or change of employment, employees must return the company vehicle, along with all related equipment and documents, to the designated authority.

Compliance with Laws and Regulations

Employees using company vehicles must comply with all applicable local, state, and federal laws, as well as traffic regulations and vehicle licensing requirements.

Policy Violations and Consequences

Violations of this company car policy may result in disciplinary action, up to and including termination of employment. The severity of the consequences will depend on the nature and frequency of the violation.

Policy Review

This company car policy will be reviewed periodically to ensure its effectiveness and compliance with changing laws and regulations. Any updates or revisions will be communicated to all relevant employees.

By signing below, I acknowledge that I have read and understood the company car policy and agree to comply with its guidelines.

Employee Name: 

Employee Signature


Please note that this sample policy should be reviewed and customized according to your company's specific needs and requirements, as well as local laws and regulations. It is advisable to consult with legal professionals or HR experts to ensure compliance.

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Pankaj Deshmukh

Pankaj Deshmukh is a digital marketing professional working with HireQuotient. He strongly believes in the never-ending process of learning and stays updated with the latest trends in order to produce valuable content.

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