Car use for company job - Who pays insurance excess if an incident occurs?

[Deactivated] on 12/03/2014 - 10:57

I have been working at my company for over a year now. At the company I am required to use my car for purposes of travelling to and from installation jobs. I use my car approximately 10000km per year for company purposes alone. I am allowed to claim an amount per km for company travel purposes.

At my yearly review I took the opportunity to give my COO a scenario and asked him this:

If I am driving to a job and carrying company equipment - and my car gets broken into and equipment gets stolen - who pays for the insurance excess for the damage on my car?

They said they will get back to me and still haven't answered my question (2 months have passed)

I know that if I am not on a job that I can't expect any personal incidents to be covered but surely if I am using my personal car for the business benefit of the company they should at least cover my excess if there is an incident while on the job.

Automotive

Comments

  • Realsteel on 12/03/2014 - 11:13

    I do know that some company's insurance policies cover such incidents when staff use vehicles for business purposes. Maybe worth checking whether the insurance covers for such incidents.

  • [Deactivated] on 12/03/2014 - 11:14

    If you claim mileage as per the ATO rates, then all maintenance/upkeep/insurances/rego is your responsibility. In the event of an accident, it will be your responsibility.

    • [Deactivated] on 12/03/2014 - 12:55

      That said - the rate I am given is not as per the ATO rates. It is substantially lower. Does this matter?

      • MITM on 12/03/2014 - 13:50

        Who pays for the tyres when they wear out doing 10,000km PA for the company ? They're all operating costs.

        Check out the true driving + ownership costs for your car at an autoclub website or Choice. It's all inclusive and you'll be staggered.
        I'd use that as the minimum $ per km from the company, and then add some.

        The company is onto a good deal with you- saving them $25-$45k capital expense and all risk. YOU will have to replace your car sooner
        The $'s the company gives you is taxable earnings pushing you into a higher tax bracket.
        Whereas the km's claimed in your tax return reduces your taxable income.
        You would need to be keeping records (log book) to claim work % of costs or claim ATO km rate in your tax return against the allowance received.
        Do the math.

  • Smulder on 12/03/2014 - 11:16
    +2

    When you say "I am allowed to claim an amount per km for company travel purposes." do you mean the company pays you an allowance based on a per/km rate? Or do you just mean you claim a MV deduction on your tax return?

    If the company pays you an allowance per KM, this rate would most likely include a provision for all costs of running the car (not just petrol), which would include insurance.

    As far as the company is likely concerned they are already covering you for 'their' portion of your insurance premium. I can't see them covering your insurance excess, as the policy you take out (and the level of excess) is up to you. Though they may out of goodwill.

    If you are worried about it, reduce the excess on your policy.

    • [Deactivated] on 12/03/2014 - 12:52

      I claim a per/km rate reimbursed to me as a Car Allowance.

      I understand that it will cover my insurance cost PREMIUM - but what about the EXCESS?

      • Smulder on 12/03/2014 - 14:18

        What I was trying to say is that the allowance is everything they are going to give you in relation to the car. As far as they would be concerned, the allowance factors in everything, including any excess on an insurance claim. You are the owner of the vehicle, and the insurance policy is in your name, so you pay the excess.

        This of course assumes that the accident or theft is not a result of the employers fault or negligence. If your vehicle is damaged on your employers property and they are at fault, then I assume their liability insurance may cover it, though I am not a lawyer :)

  • ChickenTalon on 12/03/2014 - 12:04

    You're unlikely to claim the damage to the car for a break in, through say a window, as it will be near the excess anyway. Unless they take a door off or similar to get at it.

    You can reduce your excess but check your exclusions. It might not include coverage for glass replacement.

  • mini2 on 12/03/2014 - 12:57

    The operator at the time of the accident pays for the excess? Seems fair.

  • thejew on 12/03/2014 - 14:05

    It sounds like you are being screwed.

  • DrStinge on 12/03/2014 - 14:52

    In fairness..
    Break in - your responsibility (your insurance)
    Stolen company goods - companies problem (companies insurance - unless your job was to specifically guard them)

  • crosswire on 13/03/2014 - 07:58

    Check the PDS of your insurance. You might not even be covered for business use of your vehicle. If something happened you might be left high and dry.

    • stewartedin on 13/03/2014 - 08:16

      Good point as I had to change insurers last year as my previous insurer did not cover my car for business use in any way, better check.

    • [Deactivated] on 13/03/2014 - 09:33

      Wow I haven't even thought about this…

      The thing is - the CEO said at the interview that my car will be covered for all expenses.

      I'll do the math as MITM suggested - that's the best way.

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