A new report based on US Bureau of Labor statistics has found that most motor vehicle accidents involving company cars occur during the personal time of employee drivers.
Specifically, the report said that 60% of company car accidents happen during an employee’s personal time, while the remaining 40% of collisions were work-related.
CarData Consultants, a provider of vehicle reimbursement programs (VRPs), said the data is proof that more companies need VRPs to help manage the business risk of losing company cars to collisions.
VRPs reimburse employees for the business use of their personal vehicle; this leaves the employee’s insurance as the primary coverage in the event of a collision.
On top of VRPs, CarData also suggested companies should expand their driver risk management approach to include things like insurance verifications and driver’s license checks. Business use coverage is something employees should consider, CarData recommended.
Although “business use” insurance sounds like it has something to do with commercial insurance, it is not necessarily the case.
"When we review drivers' insurance policies it’s quite clear, a driver either has business use coverage or the language in the insurance policy states pleasure/personal use coverage,” CarData said in a statement.
Research found there is an extra premium for business use coverage of about 10%, but CarData said it can offer the same coverage via its VRP.
"The premium for business use coverage is built into the Vehicle Expense database, and so is added into the monthly reimbursement paid to drivers via a VRP,” the company explained.