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Vehicle Use Agreement

This Vehicle Use Agreement template is designed for businesses to formalise the terms and conditions under which an employee or authorised user is permitted to use a company-owned vehicle. It outlines responsibilities, permissible use, maintenance, and insurance details.

Updated 16d ago
vehicle use agreementcompany vehicle policyfleet managementemployee agreementtransportation policyHR document

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Vehicle Use Agreement

Vehicle Use Agreement

{{company_name}} {{company_address}} Phone: {{phone}} Email: {{email}} Website: {{website}}

VEHICLE USE AGREEMENT

This Vehicle Use Agreement ('Agreement') is entered into on this {{day}} day of {{month}}, {{year}}, by and between {{company_name}} ('the Company'), located at {{company_address}}, and {{employee_name}} ('the Employee'), residing at {{employee_address}}.

1. Vehicle Details

The Company hereby grants the Employee permission to use the following company-owned vehicle ('the Vehicle'):

Make: {{vehicle_make}}

Model: {{vehicle_model}}

Year: {{vehicle_year}}

Vehicle Identification Number (VIN): {{vehicle_vin}}

Registration Number: {{vehicle_registration_number}}

Colour: {{vehicle_colour}}

2. Permitted Use

The Vehicle is provided primarily for business use in connection with the Employee’s duties for the Company. Limited personal use may be permitted as agreed upon by the Company and strictly adheres to the terms outlined herein. The Vehicle shall not be used for any illegal purposes, competitive business activities, or in any manner that would bring disrepute to the Company. The Employee is prohibited from using the Vehicle while under the influence of alcohol or any intoxicating substances.

3. Employee Responsibilities

The Employee agrees to:

a. Operate the Vehicle safely and in compliance with all applicable traffic laws and regulations.

b. Maintain a valid driver's license appropriate for the Vehicle classification.

c. Keep the Vehicle clean and in good working order, performing routine checks such as tyre pressure, oil levels, and fluid levels.

d. Report any accidents, damage, theft, or mechanical issues immediately to {{reporting_person_or_department}}.

e. Pay for all fines, tolls, and penalties incurred due to personal use or traffic violations.

f. Not allow any unauthorised persons to drive the Vehicle.

4. Maintenance and Repairs

The Company will be responsible for scheduled maintenance and major repairs of the Vehicle. The Employee must arrange for servicing as per the manufacturer's recommendations and communicate all maintenance needs to {{maintenance_contact_person_or_department}}.

Any unauthorised repairs will be at the Employee's expense.

5. Insurance

The Vehicle is insured by the Company under policy number {{insurance_policy_number}} with {{insurance_provider}}. The Employee is covered under this policy for authorised use of the Vehicle. Any claims arising from unauthorised use or negligence by the Employee may result in the Employee being held personally liable for damages and costs not covered by the Company’s insurance policy, up to and including the deductible amount of {{deductible_amount}} {{currency}}.

6. Fuel and Expenses

The Company will cover fuel costs for business use. The Employee will be provided with a fuel card (Card Number: {{fuel_card_number}}) or will be reimbursed for fuel expenses incurred during business travel upon submission of valid receipts to {{accounts_department}}.

Personal use fuel expenses are the responsibility of the Employee.

7. Termination of Use

The Company reserves the right to terminate this Agreement and reclaim the Vehicle at any time, with or without cause. Upon termination of employment or this Agreement, the Employee must return the Vehicle to the Company in good condition, reasonable wear and tear excepted, by {{return_date}}.

8. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of {{country_name}}.

9. Acknowledgment

By signing below, the Employee acknowledges that they have read, understood, and agree to abide by all the terms and conditions set forth in this Vehicle Use Agreement.

Signature Block

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

___________________________

{{employee_name}}

Employee Signature

Date: {{date}}

___________________________

For {{company_name}}

{{authorised_signatory_name}}

{{authorised_signatory_title}}

Date: {{date}}

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