Who Pays When Company Cars Are Involved In Accidents?

When you have access to the company car you are faced with both a burden and a privilege. However, this does not mean that unexpected problems cannot appear. When you are involved in an accident and you are driving the company car, knowing who is going to pay for the damages is something that should be properly understood. Car accident lawyers reveal who pays and you may be surprised to find out that differences can appear from one case to the next.

Insurance Companies

When there is proper insurance present, it is the insurance company that is going to pay for property damage, even if you were responsible. When there are uncovered damages and injuries, it is the party that is considered to be responsible that will make the payments. Auto insurance policies are normally a little different with company cars. However, when employees are liable, it is possible that the employee will have to pay something back to the company.

Respondeat Superior

As lawyers and judges discuss about accident damage and fault of employees or employers, the respondeat superior principle is used. This basically means that an employer will normally be responsible for the actions that are taken by the employee when the employee is acting within business scope. Employment scope definition is what is difficult. In many cases whenever work-related tasks are done and the car is driven, companies are responsible. When an employee is driving a company car while doing personal business, employees are going to have to pay. For instance, when you commute to work or you run personal errands in the company car, you will be asked to pay at the end of the process if the accident was your fault.

Obviously, many different factors are going to influence the decision about liable party. As an example, when there is a car policy for the company car that makes the business completely liable if accidents happen, companies need to make the repairs. At the same time, where the accident happened can influence the outcome as local liability and personal claim laws can be different.

Car Accident Liability

When an employee acts within employment scope it is impossible for the employer to force an employee to make payments for accident related damages. When company rules were violated or driving behavior was reckless, employees are generally fired. No matter who was at fault, it is really important to talk with the superiors so that you can see exactly what the official decision of the company is. That will help you to take the next steps.

Whenever liability is questioned, talk to an attorney. Generally speaking, whenever you are asked to pay for damages in an accident it is a very good idea to talk to specialized attorneys since they are going to help you. Have patience and do choose one that is among the best that are available where you live. Working with an attorney helps you so much more than what you initially believe.