In brief
A car policy is an internal company policy that defines who receives which vehicles and how they may be used. It creates consistent rules and limits decisions made case by case.
What does a car policy cover?
Eligibility by function or hierarchy, permitted vehicle classes and budgets, equipment requirements, powertrain types, contract terms, and mileage. It also sets out rules for use: private use, travel with family members, trips abroad, conduct after damage, handling traffic offenses, and return upon leaving the company or during a long absence.
How does it differ from a company car policy?
The terms are often used interchangeably. Separating them by purpose is useful: the Car Policy describes the rules for the fleet as a whole, including pool vehicles and commercial vehicles. The company car policy covers the employment law aspects of providing a vehicle to an individual.
What sections belong in a car policy?
The following outline covers the questions that actually arise in operations.
- Scope and eligibility by function or position
- Vehicle classes, budget limits, and permitted powertrains
- Equipment, special requests, and employee contributions
- Ordering, delivery time, and interim arrangements
- Handover, driver changes, and return
- Private use, passengers, and trips abroad
- Fuel, charging electricity, and reimbursement
- Conduct after damage, deductibles, and handling fines
- Driver obligations: checks, training, and reporting defects
- Special cases: prolonged illness, parental leave, leave of absence, and departure
- Responsibilities and points of contact
The last three items are the ones most often missing from existing policies and cause the most case-by-case decisions.
What makes a car policy effective?
It anticipates decisions instead of merely describing them. A policy that only lists vehicle classes does not answer common practical questions: What happens during parental leave? Who pays the deductible for damage caused by the driver? How is home-charged electricity reimbursed for electric vehicles?
A switch to electric mobility is a good time to revise the policy. Vehicle classes based on engine displacement or power no longer fit; budget limits that take account of the price threshold for the 0.25% rule make more sense.
Further reading
Fleet Management Without Excel Spreadsheets
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