{"id":353047,"date":"2016-11-08T11:50:53","date_gmt":"2016-11-08T16:50:53","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/injury\/car-accidents\/car-accidents-in-company-vehicles.html"},"modified":"2025-09-29T10:42:27","modified_gmt":"2025-09-29T15:42:27","slug":"car-accidents-in-company-vehicles","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/car-accidents\/car-accidents-in-company-vehicles.html","title":{"rendered":"What Happens if You Get in a Car Accident in a Company Vehicle?"},"content":{"rendered":"\n
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What Happens if You Get in a Car Accident in a Company Vehicle?<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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In most instances, an employer is liable for damages in a car accident<\/span> if the employee is driving a company-owned vehicle during their work duties. This is due to a rule called respondeat superior<\/span>.<\/p>\n\n <\/div>\n\n\n\n

Company vehicles<\/span> can be anything from a commercial van to a fleet vehicle to an ordinary leased car with a magnetic logo. What matters for driving and insurance purposes is whether your company owns and insures the car or truck, or if you do.<\/p>\n

If you have a car accident<\/span><\/a> in a company-owned vehicle, whether you were driving for business reasons or doing a quick errand on your own time also determines responsibility. Both the vehicle\u2019s owner and the employee\u2019s actions<\/span> affect who pays for the damages after a company <\/span>car<\/span> accident<\/span>.<\/p>\n

Company <\/span>Car<\/span> Insurance<\/span> Versus Personal Liability Insurance<\/strong><\/h2>\n

After a company vehicle<\/span> accident<\/span>, insurance companies<\/span> determine which driver was at fault for the car crash<\/span>. If you are the driver, you should exchange insurance information<\/span> with the other driver and present that driver\u2019s <\/span>insurance<\/span> information<\/span> to your employer\u2019s insurer with the accident report.<\/p>\n

If you are driving your own car while on company business, you may need to give the other driver your insurance information<\/span> and any secondary insurance from your company, if they have a policy.<\/p>\n

Employee Liability for an Accident<\/strong><\/h3>\n

An employee driving a company vehicle<\/span> is liable for an auto accident<\/span> whenever they drive. Driving your employer\u2019s car or truck does not relieve you of the duty to drive responsibly and obey traffic laws. If you were speeding, intoxicated, or violated other traffic regulations, you could be entirely at fault for the accident.<\/p>\n

Employer Liability for an Accident<\/strong><\/h3>\n

If the employee is responsible for the accident, the employer may still be liable under the legal doctrine of respondeat superior<\/span><\/a>. Under this legal theory, an employer is responsible for the employee\u2019s actions<\/span> if the employee was acting within the scope of their duties. \u201cScope of duties\u201d means that the employee is carrying out tasks assigned by their employer as intended.<\/p>\n

For example, if a delivery driver has an accident while on their regular route, the employer\u2019s insurance<\/span> may cover the other driver\u2019s damage. Taking a quick side trip to gas up the vehicle is considered within the scope of employment<\/span> and known as a detour. If the driver takes the car on a road trip with friends, that is considered a \u201cfrolic.\u201d The employer\u2019s insurer will not cover any accidents that occur on a frolic. Company insurance does not cover personal errands<\/span><\/a> or other unauthorized deviations.<\/p>\n

Respondeat superior<\/span> is a type of vicarious liability<\/span> that makes an employer liable<\/span> for an employee\u2019s accident. Under this theory, if an employer gives authorization for a person to do certain things, the employer is liable for any harm that flows from those acts. If the delivery driver gets approval from their boss to run a personal errand<\/span> in a company car<\/span>, the company may be liable for an accident that occurs under the vicarious liability<\/span> theory.<\/p>\n

Who Pays for Damages After a Company Vehicle<\/span> Accident<\/span>?<\/strong><\/h2>\n

In most cases, the company\u2019s insurance<\/span> will cover any damage to the work vehicle<\/span> itself. This applies even if you were the at-fault driver<\/span> and have your own auto <\/span>insurance<\/span> policy<\/span>.<\/p>\n

It\u2019s possible you could get hurt while driving for your employer. If you are not at fault, insurance could pay your damages and medical bills<\/span> in a couple of ways.<\/p>\n

Workers\u2019 Compensation<\/span><\/strong><\/h3>\n

If you were on the job and driving a company vehicle<\/span>, you may be eligible for workers\u2019 compensation<\/span> insurance<\/span><\/a> if injured. Workers\u2019 compensation<\/span> benefits<\/span> apply to all employee injuries arising during the course of employment. Workers\u2019 comp<\/span> pays for all medical bills<\/span> and lost wages<\/span> directly related to the accident. In return, the worker waives rights to appeal or sue their employer. Workers\u2019 comp<\/span> will not pay for the other driver\u2019s injury or damages.<\/p>\n

Personal Insurance<\/span><\/strong><\/h3>\n

Unless you have something called \u201cextended non-owned coverage\u201d at the time of the accident<\/span>, your personal insurance<\/span> will not cover an accident in a company vehicle<\/span>. If your job requires you to use your personal vehicle for company travel, you may want to consider this type of coverage.<\/p>\n

Your personal <\/span>insurance<\/span> policy<\/span> will cover property damage<\/span> for your own vehicle if you are on your own time. If you\u2019re not sure who should be paying for your injuries, consider speaking with a car insurance<\/span> attorney<\/a>.<\/p>\n

Independent Contractors<\/span> and Rideshare Drivers<\/strong><\/h2>\n

In most cases, independent contractors<\/span> will not be driving company vehicles<\/span>. Contractors are not employees, and they must carry their own insurance for their vehicles. However, rideshare companies like Uber and Lyft have different requirements.<\/p>\n

Under the laws of most states, rideshare drivers are independent contractors<\/span><\/a> for wage and tax law purposes. Rideshare companies must have accident liability insurance for their drivers that kicks in once they accept a fare.<\/p>\n

Depending on the state, rideshare drivers are responsible for their own accidents if they have not activated the rideshare app, or if they have activated it and are waiting for a request. The company\u2019s insurance<\/span> takes over when the driver accepts a passenger and when the passenger is in the vehicle. If you have an accident while you\u2019re en route to a pickup, the insurance issue becomes more complicated. Many insurance companies<\/span> provide rideshare insurance for rideshare drivers. Rideshare drivers should review their options with their agents and with a car insurance<\/span> attorney<\/a>.<\/p>\n

Get Legal Help From a Car Accident<\/span> Lawyer<\/span><\/strong><\/h2>\n

If you\u2019ve been in a car accident<\/span> in your company car<\/span>, getting legal advice<\/span> from a personal injury<\/span> attorney<\/span><\/a> is likely your best option. Even if your accident is work-related<\/span>, you will need assistance making your insurance claim<\/span> for potential workers\u2019 compensation<\/span> and other claims.<\/p>\n\n\n

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Company auto insurance<\/span><\/a> is not much different from personal car insurance<\/span>. Both cover the driver and the vehicle according to state requirements. State laws may require a company vehicle<\/span> to have higher per-person and per-accident limits. Business insurance may also have higher comprehensive coverage and higher uninsured\/underinsured motorist<\/span> protection.<\/p>\n