How To Draft a Company Vehicle Use Agreement Like a Pro
Having clearly outlined rules in your company’s vehicle policy is important for both you and your employees. If you are unsure of what to include in your company vehicle use agreement, we’re here to help. You can rely on our guide and create your contract without too much fuss.
A company vehicle use agreement is a document used to establish which employee can use a company fleet vehicle and on what conditions. The contract is used to set out the requirements for getting this benefit, the rules that employees have to follow when using a company car, and the consequences of an employee misusing a vehicle.
Writing any agreement by yourself can be confusing and overwhelming. If you aren’t certain what clauses your company vehicle use agreement should cover, we’re happy to clarify. Follow the list provided below to write your agreement effortlessly:
- Policy—Explain the company driver policy in the first clause and say that the policy gives guidelines for obtaining and using a company car. To avoid any confusion, state that a ‘company vehicle’ is any vehicle that the company assigns to an employee and that the policy applies to everyone both during and after business hours
- Qualification—State what qualification criteria an employee must meet to be eligible for a company vehicle. This usually involves a valid driver’s license and clean driving record for a certain number of years
- Employees with a disability—Say how the company will accommodate an employee with any type of disability who’s eligible to use company vehicles
- Personal use—Elaborate on the rules of personal use. State how and when an employee is allowed to use the company car outside of working hours and state that the safety rules still apply when a vehicle is used for personal reasons
- Rules—Incorporate all the company driver rules and double-check whether all important aspects are covered. Also, make sure to mention that if an employee breaks any of these rules, they’ll be subject to legal action and other consequences. This section is quite important since it lets employees know how to behave and what the repercussions they’ll face if they don’t oblige are
- Accidents—Explain what an employee is expected to do if an accident occurs. In these instances, an employee will usually contact the company and ask them to reach out to an insurance provider. He or she will further exchange information with the other driver and report the incident to the local police department if needed
- Responsibilities—Provide a detailed description of what the company is and isn’t responsible for
Setting the rules of personal use in a company vehicle use agreement can be one of the most important items when writing this document. You need to choose and clarify which one of the calculation methods from the table below will be used in your agreement:
|Calculation Method||What Employees Should Do|
|General valuation||Inquire about the price they would pay for leasing a vehicle in the same area for the same period of time|
|Annual lease valuation||Multiply the annual lease value by the percentage of miles that they drove for personal use|
|Cents-per-mile rule||Multiply the number of miles driven for personal use by the regular mileage rate (around $0.58 per mile)|
|Commuting valuation||Multiply every one-way commute by $1.50|
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- Enter the name of the agreement you want us to draft
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To see what documents you can make using DoNotPay, check out the table below:
|Real Estate Agreements||Business Agreements||Other Agreements|
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