Guide to managing policies and programs for company vehicles

Providing employees with company vehicles can help attract talent, support mobile workforces and make it easier for people to do their jobs.

Sales representatives, home healthcare providers, property managers, field supervisors and other employees often rely on company vehicles to meet customers where the work happens. 

But handing over the keys also means taking on additional responsibility. Transportation incidents are the leading cause of work-related deaths in the United States, accounting for nearly 40% of all occupational fatalities.1 Employers are also responsible for protecting valuable assets, managing insurance and corporate liability risks, controlling operating costs and documenting vehicle use.

A well-written company vehicle policy establishes those expectations before employees get behind the wheel. However, it’s just as important for those policies to be enforced consistently.

GPS tracking, telematics reports and AI-powered video help businesses monitor compliance, coach safer driving habits and keep costs under control, allowing companies to effectively manage their programs.

What every company vehicle policy should accomplish

Whether your organization operates five vehicles or 500, every company vehicle policy should accomplish three things:

1. It should protect people. That means setting clear boundaries around distracted driving, seat belt use, speeding, impairment, accident reporting and other behaviors that affect driver and public safety. 
2. It should safeguard company assets. Vehicles represent a significant investment, and a policy should clearly define who may drive them, when personal use is permitted and how employees are expected to care for company equipment. 
3. It should help control operating costs. Fuel, maintenance, insurance and vehicle depreciation all increase when company vehicles are used carelessly or inconsistently. A well-written policy encourages responsible driving habits, preventive maintenance and accurate recordkeeping that help businesses manage expenses over time.

What to include in a company vehicle policy

While every organization's policy will look a little different, the strongest company vehicle policies clearly define responsibilities, establish consistent procedures and remove ambiguity before employees ever get behind the wheel.

1. Eligibility

Define who qualifies for a company vehicle and under what circumstances.  

• Eligibility criteria: Explain which positions qualify for a company vehicle and whether eligibility is based on job responsibilities, travel frequency or on-call requirements.
• Authorized drivers: Identify who is permitted to operate a company vehicle, including spouses, family members or other non-employees.
• Driver qualifications: Require employees to maintain a valid driver's license and establish any reporting requirements for license suspensions or serious traffic violations.²

2. Personal use of company vehicles (and mileage tracking)

Personal use of a company vehicle often creates the greatest uncertainty for both employers and employees. Clearly define when personal use is permitted, how it should be documented and the responsibilities that come with taking a company vehicle home.

• Permitted personal use: Clearly define whether employees may use company vehicles for commuting, personal errands or other non-work activities. If personal use is prohibited or limited to certain situations, spell out those restrictions.³
• Mileage tracking: Explain how employees should document business and personal mileage. The IRS generally considers personal use of an employer-provided vehicle to be a taxable fringe benefit, making accurate mileage records important for tax reporting and compliance.³ 
• GPS tracking in company vehicles: Be transparent about what information is collected and why.4 GPS tracking can simplify mileage reporting, verify business and personal trips, support tax documentation and investigate unauthorized vehicle use. Transparency helps build trust while reinforcing that the technology is intended to improve safety, accountability and fleet operations. 

3. Driver expectations

A company vehicle policy should clearly define how employees are expected to operate and care for employer-issued vehicles. 

• Safe driving practices: Require employees to obey traffic laws, wear seat belts, avoid impaired or distracted driving and operate vehicles responsibly in all weather conditions.
• Vehicle care and condition: Explain employee responsibilities for keeping vehicles clean, reporting damage promptly and performing basic inspections, such as checking fuel levels, tire condition or other items identified by your organization.
• Prohibited activities: Identify behaviors that are not permitted, such as smoking or vaping in company vehicles, unauthorized modifications or towing personal equipment.

4. Company vehicle accident policy

A company vehicle accident policy helps employees respond appropriately in the moment while giving your organization the information it needs to manage insurance claims, investigate incidents and protect the business. 

• Immediate response procedures: Explain what employees should do immediately after an accident, such as checking for injuries, contacting emergency services when necessary and speaking with authorities.
• Reporting requirements: Establish who employees should contact, how quickly accidents must be reported and what information should be documented, including photos, witness information and police reports when applicable.

• Post-accident process: Require cooperation with any internal review or insurance investigation.

5. Company vehicle insurance policy

Employees should understand what insurance coverage the company provides, where that coverage begins and ends and what responsibilities remain their own. 

• Employee responsibilities: Clarify whether employees are responsible for insurance deductibles, traffic violations, fines or damage resulting from unauthorized vehicle use or policy violations.
• Required documentation: Identify what insurance information employees should keep in the vehicle and what documents they should provide if they're involved in an accident or traffic stop.

6. Company vehicle maintenance policy

A company vehicle maintenance policy helps keep vehicles safe, reliable and available while extending vehicle life, reducing repair costs and minimizing unexpected downtime.

• Routine maintenance: Explain who is responsible for scheduling or completing routine services, such as oil changes and tire rotations.
• Vehicle inspections and reporting issues: Require employees to perform regular walk-around inspections and promptly report issues such as warning lights, tire damage, or fluid leaks. Establish a process for reporting maintenance concerns or repair needs.
• Maintenance records: Document completed services, inspections and repairs to help track vehicle history, support warranty claims and plan future maintenance.

Why enforcement matters just as much as the policy

A company vehicle policy establishes expectations, but policies only work when they're consistently reinforced. Without a practical way to verify vehicle use, identify risky driving habits or document what happens on the road, even the best-written policy can become difficult to enforce.

Fleet management technology helps bridge that gap by turning policy into day-to-day operations. GPS tracking in company vehicles and video telematics provide objective information that supports driver coaching, simplifies compliance, controls operating costs and extends vehicle life.

Your policy should...	Verizon Connect helps reinforce it with...
Promote safe driving habits and reduce distracted driving	AI dashcams and in-cab alerts. These alerts provide immediate feedback when risky behaviors occur. Vehicles using active in-cab alerts saw up to a 60% reduction in phone use, a 30% reduction in distraction and a 60% reduction in unfastened seat belts.5
Support efficient vehicle operations and keep costs down	Monitoring and safety scoring driver behaviors like speeding and harsh driving. These coaching tools help managers identify behaviors that increase fuel consumption and vehicle wear and limit them through driver coaching. Active GPS tracking users achieved a 48.6% median reduction in speeding, 22.6% reduction in harsh driving and 15.9% reduction in engine idling.6
Prevent unauthorized vehicle use	GPS tracking, live map, route replay and geofences. These help verify business use, identify unauthorized trips, reduce unnecessary mileage and document vehicle activity after hours. That visibility can help businesses control fleet fuel costs, reduce excess wear and simplify mileage reporting.
Encourage timely maintenance	Maintenance reminders and diagnostic trouble codes (DTCs). Addressing maintenance sooner can reduce unexpected downtime, extend vehicle life and help avoid the higher costs associated with emergency repairs.
Support accident investigations	GPS data and AI dashcam footage. This evidence provides an objective record of events, helping protect employees, resolve disputes and potentially lower the cost of insurance.

Privacy, safety responsibility and transparency in telematics

Telematics are an effective way of managing company vehicles, but they also serve a broader purpose than mere monitoring. Employers should establish and clearly communicate the legitimate business purpose behind the program, whether that’s improving response times, maintaining accurate mileage records or protecting assets.⁴

But the most compelling reason for using video and GPS tracking in company vehicles is an employer’s responsibility to provide a safe workplace. 

In a 2010 open letter to employers, OSHA made clear employers have a legal responsibility to create and maintain a safe and healthful workplace, including establishing a "clear, unequivocal and enforced policy against the hazard of texting while driving."⁴

Telematics, AI dashcams, in-cab alerts and driver coaching help organizations identify risky behaviors like texting, distraction and tiredness and helps reinforce safe driving policy.

Employers should be transparent about what information is collected, when monitoring occurs and how the data will be used. Verizon Connect includes a privacy button that allows drivers to disable tracking on company vans or trucks in accordance with company policy. Optional covers for driver-facing dashcams are also available.

If employees are permitted to use company vehicles outside work hours, review applicable federal, state and local laws regarding employee monitoring and clearly communicate any privacy features or policies that apply. 

Turn your company vehicle policy into everyday practice

A well-written company vehicle policy gives employees clear expectations and gives managers a consistent framework for making decisions. When those policies are reinforced with vehicle tracking, telematics reports and AI-powered video, businesses gain greater confidence that company vehicles are being used safely, responsibly and as intended.

Whether you're launching a new company vehicle program or updating an existing policy, the right technology can help simplify compliance, reduce risk and support better decisions every time your vehicles hit the road.

Talk to one of our fleet specialists about how to manage your company vehicle program and protect employees with video telematics.

Sources

¹ Motor Vehicle Safety, Occupational Safety and Health Administration

² A Guide to Writing a Company Vehicle Use Policy, U.S. Chamber of Commerce

³ IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits

⁴ Monitoring Employees: How Far Can You Go? Society for Human Resource Management

⁵ Verizon Connect aggregated customer data video analysis of the number of events per engine hour with/without in-cab alerts on 30,000 vehicles

⁶ Verizon Connect aggregated customer data of long-term active users (1+ year) of Reveal reports and alerts