Shared business vehicles can give employees a flexible way to travel for work. They can also help a business avoid giving every employee their own company car.
However, sharing vehicles creates extra responsibilities. Businesses need to know who can drive each vehicle, how employees can use them and whether their insurance still matches their needs.
Good vehicle management can reduce confusion, improve safety and help prevent insurance problems.
What are shared business vehicles?
A shared business vehicle is a company-owned or company-operated vehicle that several employees can use for work.
Businesses may use shared cars for:
- Visiting customers and clients
- Travelling between business locations
- Attending meetings
- Carrying out site visits
- Attending training or events
A business might operate one shared car or several vehicles. Larger businesses may include shared vehicles within a wider fleet.
The important point is that employees share access rather than receiving exclusive use of the vehicle.
Set clear rules for vehicle use
Employees should know exactly when and how they can use a company vehicle.
Create a simple written vehicle policy that covers:
- Who can drive the vehicle
- How employees book it
- Where they can take it
- Whether private use is allowed
- Whether employees can take it home
- What happens after an accident
- Who pays for fuel
- What drivers should do if the vehicle breaks down
- Who they should contact with questions
Clear rules make it easier for employees to understand their responsibilities. They can also help the business identify when someone uses a vehicle outside the agreed terms.
Keep track of who uses each vehicle
A booking system can make shared vehicle management much easier.
Employees should record when they take a vehicle, where they are going and when they expect to return it. The business can then see who has access to each vehicle and identify any problems.
You do not necessarily need an expensive system. A shared calendar or simple digital booking system may work for a small business.
Larger businesses may benefit from dedicated fleet management software.
Keeping accurate records can also help the business understand how much employees use each vehicle and whether its current fleet still meets its needs.
Check driving licences regularly
Businesses should make sure employees have the appropriate licence before allowing them to drive company vehicles.
Do not assume that a driver who was eligible when they started with the company remains eligible indefinitely. Employees can receive driving endorsements or restrictions that affect their ability to drive.
The business should therefore have a process for checking licences and dealing with any changes.
If you use an any-driver policy, you should still make sure that every person using the vehicle meets the insurer’s requirements. Any-driver cover does not mean that every person can automatically drive. Insurance Revolution’s business vehicle insurance, for example, provides any-driver options subject to eligibility and policy terms.
Check your insurance covers the actual drivers
Insurance should reflect how your business uses its vehicles.
If several employees share a car, a business may need multiple-driver or any-driver cover rather than a policy designed around one named driver.
An any-driver policy can give eligible employees access to a vehicle without adding each person individually. This can suit businesses with rotating staff or shared cars.
However, insurers can apply conditions. These may include age restrictions or other eligibility requirements.
Always check the policy wording before allowing a new employee to drive.
Insurance Revolution offers any-driver options for shared vehicles and pool cars, including cover for eligible drivers aged 25 and over.
Make sure business use is covered
A standard personal motor policy may not provide the cover a business needs when employees use vehicles for work.
Business vehicle insurance can cover work-related driving, but the appropriate cover depends on what employees actually do.
For example, staff might visit customers, travel between business sites or attend appointments. A business should explain these activities accurately when arranging insurance.
If the way employees use a vehicle changes, review the insurance rather than assuming the existing policy remains suitable.
Insurance Revolution explains that business vehicle insurance can cover vehicles used for work and offers options for multiple drivers and any-driver arrangements.
Decide whether private use is allowed
Businesses should make their rules around private use clear.
If employees can use a shared vehicle outside work, state what the business permits. For example, you might allow an employee to take a vehicle home overnight before an early business appointment but prohibit personal weekend trips.
Tax rules can also apply.
HMRC sets out five conditions for a vehicle to qualify as a pooled car for tax purposes. These include making the vehicle available to and actually using it by more than one employee, preventing exclusive use by one employee and keeping private use incidental to business use.
Insurance and tax rules are separate. Meeting HMRC’s conditions does not determine which insurance policy you need.
Maintain the vehicles properly
A shared vehicle can experience heavy use, particularly when several employees rely on it.
Set a regular maintenance schedule and encourage drivers to report problems as soon as they notice them.
Your process should cover:
- Servicing
- Tyre condition and pressure
- Lights
- Windscreen damage
- Warning lights
- Fluid levels
- MOT requirements
- Cleaning and general condition
Employees should also know what to do if a vehicle develops a fault during a journey.
Regular checks can help you identify problems before they become more serious.
Have a clear accident process
Every driver should know what to do after an accident.
Your policy should explain how employees should:
- Stop safely and check whether anyone needs help.
- Contact the emergency services where necessary.
- Exchange details with other parties.
- Record the incident and collect relevant evidence.
- Notify the business as soon as possible.
- Follow the insurer’s claims process.
Do not leave employees to work out the process after an accident. Give them clear instructions before they drive.
Consider fleet insurance as your business grows
One shared vehicle may be easy to manage. Several vehicles can create more administration.
If your business operates multiple cars or vans, fleet insurance could help bring them under one policy. Insurance Revolution’s fleet insurance starts from two vehicles and offers any-driver options for businesses where employees need access to different vehicles.
Fleet insurance is not automatically the best choice for every business. Compare the available options based on your vehicles, drivers and how you use them.
Review your vehicle arrangements regularly
Your business can change quickly. Employees leave, new staff join and the number of vehicles you need can increase.
Review your arrangements when:
- You buy or sell a vehicle.
- A new employee needs to drive.
- An employee leaves.
- Driver responsibilities change.
- You introduce private use.
- Your business moves premises.
- Your annual mileage changes.
- You add vehicles to your fleet.
Tell your insurer or broker about changes that could affect your cover.
Get the right insurance for shared business vehicles
Managing shared business vehicles involves more than handing employees the keys. Businesses need clear rules, suitable drivers, regular maintenance and insurance that reflects how the vehicles are actually used.
Whether you operate one shared car or several vehicles, the right insurance can help protect your business when something goes wrong.
Looking for business vehicle insurance? Insurance Revolution can help you explore pool car, any-driver and fleet insurance options based on your business requirements.
Sources
- GOV.UK / HMRC: Use of company pooled cars or vans HMRC: Use of company pooled cars or vans
