How to Navigate an Accident in a Company Car

Above all else, it is best to learn how to avoid crash complications and establish safe driving habits, but unfortunately, some accidents will still occur.  Each car accident is unique, with a broad range of severity for both property and people. They occur for various reasons, whether it be from human error, mechanical failure, or weather-related factors. Are you prepared for the damages that take place when a company vehicle is involved in a car accident? Navigating through a company car crash is slightly different than with a personal vehicle. It is crucial to be informed of the procedures to follow when we’re in a car crash, and the aftermath that can be just as overwhelming. Those who use a company vehicle and the vehicle owners must be well aware of the specific complications that can occur and how to determine responsibility for the expenses.

Determining Who's at Fault

Typically figuring out who is financially responsible in an accident with a company car will be first and foremost. This can bring up complex issues; for instance, sometimes the driver can be rear-ended by another driver who is not paying attention, and therefore the employee is not at fault. However, if the one driving the company car rear-ends someone else at a red light, then they would be at fault but would not be at fault for rear-ending due to a mechanical failure. If the accident is associated with the vehicle being poorly maintained, the employer is likely responsible for the damage costs. It is up to the owner of the vehicle to ensure a vehicle is in safe driving conditions.

The Costs

Generally, the vehicle's auto coverage will be used to pay out the damages. Therefore, the company’s insurance agent would be the proper contact. However, all too often, the employer often has insufficient policy limits. This will end up leaning on whether or not the driver was in the scope of their duties when the accident occurred. If the driver is performing job-related duties, then it is up to the employer and their insurance company to figure it out.  If the driver made a stop for personal reasons in the company car, they are likely to be held liable for damages if a collision takes place.

Legal Compliance

Other important factors to consider when navigating through an accident in a company car are the laws. In the long run, it will protect you to be knowledgeable on how to comply with state laws and jurisdictions. It is important to ensure the employer has the protections for those driving the company vehicle that state laws require. It is in the best interest of all drivers and the vehicle owners to thoroughly understand the coverage scope and limitations that could impact vehicle use decisions. Also, stay up on what policies and procedures are available to protect you from different vehicle damage circumstances. Contact your NJ commercial auto insurance agent to learn more.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we help our clients decide which of these options is best for them based on their current situation and risk factors.  Contact us at 1-855-977-1842 or insureme@dsayles.mysites.io for a consultation!