Skip to main content

Fleet Management Strategies: Fleet Usage After Hours – Building Your Own Company-Vehicle Policy

Fleet Management Strategies:
Fleet Usage After Hours – Building Your Own Company-Vehicle Policy

fleet management company-vehicle-policy-builderNeed to Draft a Policy for Personal Use of Company Vehicles?  Use These Proven Clauses to Make the Process Painless.

Here on the ClearPathGPS blog, when we discuss business vehicle tracking and improved fleet management, we’re usually speaking in terms of a fleet GPS tracking system.

But installing GPS devices in your company vehicles and using an app to monitor your field employees’ movements aren’t the only ways to improve your operations and increase control over your fleet. Another proven strategy to enhance your fleet management efforts is to draft and enforce the right written policies for your employees, such as a policy regarding your staff’s personal use of company vehicles.

In fact, these policies can be even more effective when paired with the right GPS tracking solution—because the solution itself can help you spot exceptions and violations, and your employees will know this and behave accordingly.

So, if you’re considering letting employees use your company vehicles during their personal time, you’ll want to make sure you’re including the right details—and using the right language—in the policy you draft, to explain exactly what they can and can’t do with your business assets.

Copy, Paste, and Adjust These Clauses for Your Company-Vehicle Policy

Before diving into the details of the major clauses we’re going to recommend you include, we first want to suggest that you do your own research into company-vehicle policies. You’ll want to review the specific laws and regulations in your area and industry regarding driver safety, business liability, and the tax implications of allowing an employee to use a commercial vehicle for non-commercial purposes. This research can and should inform the details of your own policy.

Please treat the clauses below simply as a starting point for the unique policy you and your team will draft. 

Policy Introduction

[Company Name] deeply values our employees, and we’re always looking for ways to enhance the experience of being a part of this company. With that in mind, we’ve prepared this short policy to voice our support for your personal use of business vehicles, under the conditions described below.

We hope this company-vehicle policy adds to the quality of your experience as a [Company Name] employee, and we trust you’ll review and abide by the following guidelines.

Who May Drive the Vehicle?

Driving is restricted to the employee and their spouse*. No children, other relatives, friends, or any other individuals may drive the company vehicle, except in emergencies. All drivers are required to promptly report any moving traffic violations and accidents involving the company’s vehicle.

*Note: For your policy, you may choose to limit personal use to the employee exclusively—and not allow the employee’s spouse to drive the vehicle.

On-File Records Required

To enjoy the right to use our commercial vehicles for personal use, [Company Name] will need to have the following on file at all times:

  1.    A copy of the employee’s driver’s license.
  2.    The employee’s DMV record (which the company will request on an ongoing basis to ensure adherence to “qualified driver” criteria).
  3.    A signed copy of [Company Name]’s vehicle-operation policy.

 Allowable Use

This company vehicle may be used for personal use up to a maximum of 300 miles* per month and up to a maximum of a 100-mile* radius from [company address]. All drivers are required to log and report any personal mileage in the company’s vehicle. 

*Note: These are only placeholder suggestions. You’ll want to determine your own parameters for how many miles per week or month you’ll allow employees to drive your commercial vehicles for personal use. You’ll also want to establish any geographic boundaries for the personal use of company vehicles.

FYI: If you do establish a geographic limit for your employees to drive your vehicles during non-work use, you can easily set and monitor those boundaries at all times using ClearPathGPS geofences.

Tax Implications

For tax purposes, you need to know that personal use of this vehicle will be considered a taxable, non-cash fringe benefit of your compensation. We are required by IRS tax law to determine its value, include it in employee wages, and withhold taxes on it. [Company Name] will use the valuation method recommended by our tax professional to calculate this income.

Use of Vehicle Restraints

[Company Name] requires the use of vehicle restraints any time a company vehicle is being operated. This includes those times when an employee is using one of these vehicles on their personal time.

All drivers and passengers are to be properly restrained in the vehicle at all times when the vehicle is in motion. Children should be restrained in approved safety seats.

Accident Notification 

Drivers are required to report any accident involving a company vehicle to a supervisor, dispatch manager as soon as possible following an accident. A copy of the vehicle registration and insurance information, as well as a preliminary accident report form, should be carried in the vehicle at all times.

How to Get the Data You Need to Support Your Policy

At ClearPathGPS, we work with our customers to help improve operations and bottom line. A key component is tracking fleet usage all day, every day. With key reports such as Virtual Timecards, Ignition Summaries, Arrival/Departure/Times-Onsite, and Geozone Reports, you can better monitor and enforce your company-vehicle policy–and making it a win-win for your business and your employees.