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Company Car Policy Advice

Company Car Policy Advice

+44 (0)1625 500 511

Company Car Policy Advice

A car policy sets out an organisation’s views, rules, guidelines and procedures affecting the fleet. It brings together aspects of policy and thinking from HR, finance, procurement, risk management and operations.

The main objective of the car policy is to ensure consistency of application, fairness and transparency in respect of company car provision to employees, a reference point holding information for those interested in the scheme. The policy is intended to take into account all of the various business units’ needs. Therefore, a policy that is frequently broken or circumvented suggests one that may need reviewing.

In addition to containing the content of the car scheme rules and procedures, the car policy is normally the main communication tool used to inform employees and line managers about the car scheme.

A policy will be different for every type of organisation. Each organisation has different needs and therefore vehicle policies will be different to one another.  The guide should act as a reference for the main elements which would most likely be included within the policy document.

The following provides a broad structure for the design of a Company Car Policy.

Key Contact Points

A good car policy should have an easily accessible list of key contacts.  This should cover both those elements of the fleet administered internally within the business as well as external service providers.  This should provide

Driver Eligibility

  • Who gets a car and what criteria apply in terms of grading or band?
  • Availability of a cash option with cash allowance values
  • Details of how vehicles are selected e.g. fixed list of monthly whole life cost value
  • Restrictions or exclusions
  • Replacement criteria in terms of age or mileage
  • Is private fuel available or the fuel reimbursement methodology?
  • Are spare vehicles re-allocated before new orders are placed?

Vehicle Selection

  • Manufacturers and models
  • Minimum specifications for vehicles such as metallic paint, Bluetooth or reverse parking sensors
  • Availability relating to extras
  • Ability or not to trade up or down

Quote, Order and Delivery Process

  • How are quotations requested?
  • Order process including authorisation process and sign off
  • Delivery of the vehicle including details on key for key exchange
  • De-hire process including policy on any vehicle damage

In Life Processes

  • Driver responsibilities
  • Maintenance and vehicle checks
  • Details of processes relating to vehicle breakdowns, glass, tyres, Road Fund Licences, MOT
  • Vehicle warranties
  • Replacement vehicle / daily hire
  • Driving offences, fines and congestion charges
  • Use of vehicle abroad
  • Towing with company vehicles
  • Insurance – who is insured to drive, conditions of insurance and vehicle usage
  • Accident Management – what to do in the event of an accident
  • Fuel –will fuel be re-imbursed via a fuel card or pay and reclaim process.
  • Cash allowances – criteria for provision of own vehicle including restrictions

Change in Circumstances

  • Promotion/Change of role/hours
  • Maternity/Paternity Leave
  • Redundancy/Retirement/Resignation
  • Long-term sickness/medical
  • Personal circumstances

Managing Road Risk

  • Driver’s health e.g. general health, eyesight etc
  • Fitness to drive e.g. alcohol/ drugs and fatigue
  • Driving license requirements and checking process
  • Periodic vehicle upkeep and maintenance such as checking lights and fluids
  • Mobile phone guidance
  • Smoking legislation
  • Driving advice & training
  • Breakdowns


  • Details regarding the organisations environmental targets or measurements
  • Expected driver behaviours in respect of the environment

Related Documentation

  • Driving At Work Policy – covering all employees travelling on business including cash takers and grey fleet.
  • Drivers Handbook - aimed at providing the driver with practical information concerning driving.  Usually stored in the vehicle.
  • Business travel policy – the organisation business travel policy including reference to company cars.
  • Expenses policy – covering all elements of business travel including fuel re-imbursement for company cars, cash takers and grey fleet.

Sign Off Form

The Policy document should contain a sign off sheet which the driver signs and returns to HR acknowledging receipt and adherence of the Policy.

If you would like some impartial advice on the efficient operation of your fleet or help with writing a Company Car Policy please email us.


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Queen's Avenue
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