Topic Thread

1.  Additional Car Insurance

Posted 07-12-2017 15:53
We are looking to require proof of auto insurance from employees who drive company trucks. Some of our employees that have been with us for 20+ years don't own another vehicle therefore don't have their own auto insurance. Have others come across this and required employees to purchase supplemental auto insurance? Do you have a policy you can share?

Laura Heckenberg
S.J. Amoroso Construction Company Inc.
Redwood City CA
(650) 654-1900

2.  RE: Additional Car Insurance

Posted 07-17-2017 09:12

I might be able to help.  I work for an insurance company and have had a company car for 20+ years so I will give you my perspective.  My company does not make me purchase additional insurance but it would be in my best interest to do so.  Insurance follows the car so if I am in an accident the primary responsibility would fall on my employer's insurance.  However, there are certain circumstances, like when I rent a car on vacation, where it would be wise if I had my own insurance and insurance companies will sell non-owned liability insurance.  In Indiana it would cost me about $180 a year but I am sure California would be much higher if it is available.  Just so we are clear the additional insurance would only cover me, not my employer so there would not be a compelling reason for my employer to require it.

I hope this helps.  My situation is for Indiana and as you know California can be different.

John English
Indiana Territory Driector
Brownsburg IN

3.  RE: Additional Car Insurance

Posted 07-17-2017 14:40
I'm interested to hear how it goes when requesting proof from your employees for company autos. I hadn't come across that issue since we don't allow personal use on our fleet (so everyone has a personal auto), but it makes sense to do so in your case. Please keep me updated -- especially if you have any advice after implementation.

I recently had an interesting conversation with some insurance folks that compelled me to require our company to be named as additional insured on employee personal policies if they don't have a company auto and either 1. receive an auto allowance or 2. receive mileage reimbursements. My conundrum is... can I require a minimum level of insurance to be held personally by the employee if they occasionally drive/are reimbursed on behalf of their job?

Melissa Bowers
Rick Scott Construction
Ponca CIty OK
(580) 762-7027

4.  RE: Additional Car Insurance

Posted 07-18-2017 09:07
​We have been successful in requiring all employees who receive an allowance or compensation for their personal vehicle to carry coverage with minimums of $500k in liability and $100k in property damage.  Also, the company is listed as additional insured.  It was not very difficult to implement when we required the proof of coverage before any additional allowance or compensation was processed for that personal vehicle.  It is very helpful to be listed as additional insured on the policy, as the insurance company will issue proof of coverage upon renewal or cancellation.

Hope this helps...

Randall E. West, CCIFP
Tanner Construction Co., Inc.
Ellisville MS
(601) 477-3820