100,000+ Ready-Made Designs, Docs & Templates to Start, Run and Grow your Business

Subscribe to Download

How to Make a Vehicle Policy

If a company has vehicles that are meant to be used for business-related purposes only, then there would be rules and regulations which dictate how these vehicles should be used. No employer wants to see their employees use company vehicles for their own personal reasons. This is why there are company policies that center around how employees are to use any vehicle that is directly tied to a company. This article is going to focus on how you are going to create this type of policy to ensure that everyone understands what can and cannot be done with company vehicles.

6+ FREE POLICY Templates - Download Now Adobe PDF, Microsoft Word (DOC), Google Docs, Apple (MAC) Pages

Vehicle Policy Template

File Format

Size: A4, US


Elements of a vehicle policy

If you want to make sure that employees are able to clearly understand the contents of your vehicle policy, then you have to be sure that the following elements are included:

1. Employees who may be assigned a company car

Employees who are eligible to utilize a company vehicle would fall into three different categories:

  • Employees who make use of company vehicles because it is an indispensable part of their job (i.e truck drivers and delivery men) You may also see policy templates in Word and PDF.
  • Employees who are required to make business trips in order to meet with different customers, clients, vendors, or potential business partners
  • Employees who are given a company car as a benefit attached to their job descriptions

In most cases, companies would determine which of their employees will be assigned a company vehicle. State in your policy that employees who are not assigned a company vehicle, yet feel that they need one in order to properly do their jobs, may discuss the matter with their supervisor or consult with Human Resources.

The policy may even state that employees may use company vehicles outside of office hours, provided that they continue to abide by the vehicle policy. Also, you have to place a legal statement that you have every right to revoke or assign vehicles to anyone within the company through your own discretion.

2. Prerequisites to drive a company vehicle

It should be stated that employees may only be assigned and make use of company vehicles if they:

  • Have a valid, up-to-date driver’s license
  • Have a clean driving record for a certain number of years (the number will depend on how long you think the employee should have been driving). Basically, this means that the employee should not have any records of being at fault for a car accident or arrested on charges of violating vehicle or traffic laws. You may also like business policy templates.

State that employees will need to complete a form that will show that they are indeed valid drivers and that they should also submit a copy of their driver’s licenses in order for them to be eligible to use any company vehicle. You may also see return policy templates.

3. Employees with disabilities

There are some employees with disabilities who may be eligible for company cars as well as company parking spaces. However, you have to state in your policy that any employees who require medication that may severely affect their orientation or deteriorate their reflexes will not be permitted to use any of the company vehicles. This is to ensure the safety of both the employee and those around him or her.

4. Driver rules

The point of having a policy is to set up rules that everyone has to follow. So, your policy should state that employees:

  • Only drive when they are sober. Any employees caught driving drunk should be severely punished for their actions.
  • Must respect traffic laws to ensure the safety of those inside the vehicle and other fellow drivers
  • If the employee has any vision problems, then he or she must wear glasses or contacts whenever he or she is driving company vehicles
  • Document any business expense sheets that are related to driving. This should include expenses like the amount of fuel the employee has spent for and the toll fees that he or she had to pay for.
  • The employees who are assigned company vehicles must check if the car has enough gas, if the tire pressure is normal, and if the car fluids are at the appropriate levels. You may also see policy memo templates.
  • If there are any damages to the company vehicle, then the employees who are assigned to the damaged vehicle must report it to Human Resources as soon as possible.
  • The employee must avoid double parking, blocking entrances, or engaging in acts that will violate traffic rules and regulations that will result in a fine.

In the event that an employee gets his or her license revoked or suspended, then the employee is required to inform the Human Resources department immediately. State in the policy that the company vehicle will be assigned to another until the employee is once again eligible to drive in accordance with the company vehicle policy. Basically, the policy tells the employee the terms and conditions of how he or she can get back his or her eligibility status in order to once again utilize any company vehicle.

Also, the policy should state that if an employee is in no condition to drive, such as being sick or any other reason that impairs his or her driving skill, then the employee must not make use of the vehicle. In the event that the employee has to drive due to him or her conducting a business trip that requires the usage of the company vehicle, then state in the policy that the employee must take regular breaks in order to prevent any accidents that will put the life of the employee and the image of the company at risk.

Allowing employees to use company vehicles is always a risky thing, but that is the purpose of creating and implementing a policy to ensure the employee follows strict rules. Should an employee continue to violate these rules, you have every right to hand out that termination letter to the offender.

You may also like

Read More Articles about


100+ FREE & PRO Ready-Made Policy

Professionally Made, Easily Editable Templates to Get your Work Done Faster & Smarter

View All Policy Templates
Available in