Understanding Fleet Insurance Risks

Your company liability doesn’t end at 5:00PM. As long as that vehicle is under your company’s name, your company is responsible.

Enforcing safe driving practices is difficult because once the vehicle leaves company property, its subject to all kinds of risk, not to mention, accidents that occur during employee personal use time contribute to increased insurance premiums and additional legal liabilities.

Companies can be held accountable for off-duty accidents involving their company vehicles, regardless of whether the employee was at fault. This potential liability arises from the perception that companies have the financial capability to cover damages, including both bodily injury and property damage.

To mitigate this risk, Vehicle Reimbursement Programs offer a solution by redirecting liability away from company-owned vehicles.

The average annual insurance premium for company-owned fleet vehicles is $1,186 per car and rising.

Managing licensing, registration, and other administrative tasks can be time-consuming and costly, leading to stalled reporting and increased expenses. Shifting maintenance and documentation responsibilities to employees can help reduce these burdens and lower overall costs.

Offloading fleet insurance costs and liability is a business win, and empowering employees to use vehicles of their choice is a win-win! Switch to Cardata’s FAVR today!