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Liability and insurance.
It’s easier for a company to rent a car because the contract states who is responsible for what in the unfortunate event of an accident.
Sure, you can get reimbursed for the mileage, gas, tolls and probably time but not for wear and tear when you’re using your own vehicle. If there’s an accident, who’s insurance is responsible? That becomes very complicated. I know that sounds absolutely horrible…
Over the years, mainly due to litigation, many companies have made it a company policy to not use personal vehicles for company functions.
EDIT: Forgot to add that some companies (including the one I work for) prefer automatic just in case someone else needs to drive that vehicle if the main driver is incapacitated; most people today drive automatic instead of manual transmission.
This seems like the right answer. Also, if there is an incident and your personal insurance is involved, you might be hit with higher premiums for years, and would have a case to have your employer to have the increase be reimbursed.
The cost of the rental car avoids a lot of bureaucratic headache on both sides that could last years if something were to happen.
You are correct.
This is where a lengthy mediation comes in with both parties trying to avoid litigation. For companies, it’s almost always cheaper to settle (I speak from experience having sat at both sides of the table).
Most people don’t realize that a moving violation ticket can cost them approximately $45 or more a year for the next four years, depending on the infraction and/or state you live in.
I absolutely agree with you.
Can confirm. I had some of the higher ups explain this exact thing to me once when I needed to drive somewhere, and it made sense from all angles to use my own (Otherwise I'd have to first drive two hours in the wrong direction to pick up the rental)
We ended up with a policy change that allowed for private cars being used with the explicit go-ahead from the line manager.
This is the correct answer. I once found training that was a 3 hour drive away. The company was still penny pinching so I offered to drive myself so only the hotel needs to be covered. They denied my request because of the liability problem. They HAD to be the one to shoulder travel.
To add on a hypothetical:
If someone drives into you and totals their car and hurts you while you are on work business, they only worry about paying for your costs. The car is a tax writeoff to them.
If someone drives into you and totals your car and hurts you while you are on work business, they need to now worry about paying for you and your car.
Hypothetically, yes but there are injuries and other factors involved. Also, who does the car belongs to?
In many states, if you (car 1) are hit from behind, it is their (car 2) fault. Fault needs to be determined to establish who is legally responsible for the financial burden for property damage, injuries, etc. **
The insurance companies will determine if a vehicle is totaled; if the total repair cost is more than the vehicle’s Actual Cash Value then the vehicle is a total loss.
Again, any collision where injuries are involved is always complicated. Fault needs to be determined in order to establish legal responsibility. ***
**There are 16 states in the US with No-Fault Insurance Laws. Drivers in these states are required to have Personal Injury Protection (PIP) on their car insurance policy which helps pay for medical costs after a vehicle accident regardless of who caused it.
***Workers’ Compensation is a type of insurance that provides salary replacement and medical benefits to employees become ill or injured because of their job. This is not my area of expertise.
I didn’t realize until now, I’m so sorry for the lengthy response.