Personal and rental cars for work: a safety guide for employers
How to keep employees safe when they drive their own or rental cars for work
Picture a program coordinator who drives her own 14 year old sedan to three client homes on Monday. On Thursday, she flies to a conference and picks up a rental car she has never driven. Her employer owns no vehicles, so nobody sees her as a fleet driver.
She is one, though. Risk managers call these cars the “grey fleet”: vehicles an organization doesn’t own or maintain but still depends on. The National Institute for Occupational Safety and Health (NIOSH) counts more than 21,000 U.S. workers killed in work related crashes from 2011 to 2022. That was 35% of all work deaths [6].
NIOSH stresses that this risk applies even when driving is only an incidental part of the job [6]. This guide covers definitions, vehicle and insurance standards, rentals, pay and emergencies, with three tools you can adapt.
When does driving your own car count as work driving?
NIOSH recommends that a driving program cover any employee or contractor who drives a company, rental or personal vehicle on company business [1]. In practice, that means trips your organization directs, requests or depends on, such as:
- Visiting clients, patients, job sites or donors
- Running errands such as bank deposits or supply runs
- Driving between offices or sites during the day
- Driving to airports, hotels and meetings on business trips
- Carrying coworkers, clients, tools or company property
Ordinary commuting is usually handled separately. NIOSH’s motor vehicle research follows the U.S. definition of a work related crash, which leaves out commuting. Yet NIOSH still treats commute time and distance as possible risk factors [7]. A long drive home after a double shift deserves attention, even outside your formal rules.
Why personal vehicles need their own rules
With a company car, you choose the model, safety features and service schedule. With a personal car, you inherit whatever the employee can afford.
In a National Highway Traffic Safety Administration (NHTSA) study of fatal crashes from 2012 to 2016, the share of occupants who died rose with vehicle age. It climbed from 27% in vehicles up to 3 years old to 50% in vehicles 18 or more years old [2].
Electronic stability control (ESC) helps drivers avoid skids. The Insurance Institute for Highway Safety (IIHS) says it has been required on most passenger vehicles since the 2012 model year. It substantially cuts the risk of fatal loss of control crashes [8].
You can’t buy an employee’s car. You can set a fair minimum standard and pay for an alternative when a car falls short.
Minimum vehicle condition standards
NIOSH suggests telling employees who drive their own cars for work to keep tires inflated, finish needed repairs and get required inspections on time [1]. Turn that into a written floor:
- Current registration and any inspection your state requires.
- No open safety recalls. Enter the 17 character vehicle identification number (VIN) at NHTSA’s recall site. The VIN is on the lower left of the windshield and on the registration card. Recall repairs are free [9].
- Safe tires, brakes, lights, wipers and glass. Our vehicle maintenance guide explains each check.
- A working seat belt for every rider.
- No red dashboard warning lights.
- ESC and good crash ratings, ideally a 2012 or newer model [8]. Decide ahead how you’ll handle older cars, such as a rental for long trips.
Repeat the check yearly and whenever an employee switches cars.
Insurance and authorization
The employee’s policy and yours
The National Association of Insurance Commissioners (NAIC) warns that personal auto coverage may exclude business related liability. It suggests that people who drive their own vehicles for business consider higher liability limits [3].
NAIC also says state minimum limits are too low to fully cover a serious crash. Vehicle use, including annual mileage, affects the premium [10]. So employees should tell their insurer that they drive for work.
On your side, NAIC explains that commercial auto policies may cover rented cars and other vehicles the company doesn’t own, including employees’ cars used for company business [3]. Insurers often call this hired and nonowned auto coverage. Ask your broker:
- Do we have it, and at what limits?
- Which policy pays first after a crash in an employee’s car?
- Does anything cover damage to the employee’s own car?
Then set minimum liability limits for employees’ policies with your broker, and collect proof yearly.
Approved drivers only
Only approved employees should drive for work, in any vehicle. NIOSH recommends checking each driver’s motor vehicle record (MVR) before assigning driving, then at least yearly [1]. Our guide to driver qualification and license checks explains criteria and fair process.
Add a signed acknowledgment covering the vehicle standard, insurance proof, phone and belt rules, and crash reporting. Decide in writing whether family members may ride along on work trips.
Rental cars: choose wisely, then learn the car
Picking the vehicle and the coverage
Set the rental class in your travel policy instead of leaving it to the counter. The Occupational Safety and Health Administration (OSHA) advises renting vehicles with high crash test ratings and features such as collision warning and lane departure warning [11]. Skip large vans and big pickups unless the driver is trained for them.
Settle coverage before the trip. The Federal Trade Commission (FTC) notes that business travelers may be covered by their employer’s insurance. Some credit cards include rental protection, but you may need to decline the counter waiver to use it [12]. A collision damage waiver can be canceled if the renter drives recklessly or impaired, or lets an unauthorized person drive [12]. Put every employee who may drive on the agreement.
Learning an unfamiliar car
NHTSA notes that automakers use different names for similar driver assistance features. These systems assist the driver but don’t drive the car [13]. Even owners misread them. In a 2018 AAA Foundation for Traffic Safety survey, 30% of blind spot monitoring owners sometimes changed lanes without visually checking [14].
Then drive one slow lap of the lot before joining traffic.
Plan the route and watch the weather
The safest trip is the one that doesn’t happen. NIOSH advises asking whether the work can be done without travel, and considering safer options such as flying or taking the train [1]. For trips that go ahead, driver and supervisor should agree on the route, destination and schedule. The driver should be able to reach a supervisor in an emergency [1].
NIOSH also suggests sharing information on construction, closures and bad road conditions [1]. Let employees delay or cancel for weather without penalty. Our guide to weather, roadside emergencies and journey management covers check ins and stand down rules.
Phones and seat belts: the same rules in every vehicle
NIOSH recommends banning all phone use while driving a company vehicle, including hands free calls. It also advises banning the use of company issued phones while driving a personal vehicle. Drivers should pull over in a safe place to call, text or look up directions [15].
A risk manager closes the gap: apply the full phone rule to every work trip, in any vehicle, on any phone. Supervisors should never call someone they know is driving. Our workplace distracted driving policy guide includes a sample outline.
NIOSH’s belt rule is simple: all drivers and passengers buckle up at all times [1]. In a personal car, that also means no more riders than working belts. Secure tools and boxes so they can’t fly forward in a crash.
Reimbursement that doesn't reward risk
The Internal Revenue Service (IRS) set the 2026 business standard mileage rate at 72.5 cents per mile, starting January 1 [4]. Citing higher fuel prices, it raised the rate to 76 cents for driving on or after July 1, 2026 [5]. The change also covers mileage allowances paid to employees [5].
The IRS bases the rate on a yearly study of the fixed and variable costs of running a car. Using it is optional [4]. Because the rate reflects ownership costs as well as fuel, it supports asking employees to keep a safe, well insured car. For example, a 150 mile round trip at 76 cents comes to $114 (our calculation).
Per mile pay doesn’t reward speed by itself, but other pay choices can:
Comparison compiled by Safety Behind the Wheel Foundation
| Pay practice | Hidden safety risk | Safer approach |
|---|---|---|
| Per mile pay, with driving as the default | Long solo drives replace safer options | Pay for flights, trains or rideshare when safer |
| Flat car allowance, no standards | Cash may go further in an old, cheap car | Tie any allowance to the vehicle standard |
| Pay per visit or delivery | Rewards rushing between stops | Pay for time; set realistic visit counts |
| No lodging budget | Tired drives home after a full day | Preapprove hotels for long days |
| Shortest route only | Drivers take riskier roads to match it | Pay for the safer route, tolls and parking |
OSHA says workloads and schedules should let employees drive at safe speeds [11]. NIOSH cautions against using in vehicle monitoring to push workers to drive too fast or too long to meet quotas. It adds that tired drivers should be able to nap for under 30 minutes or stop for the night [1]. Put the hotel in the budget before the trip. Whether drive time must be paid is a separate question for HR and counsel.
When something goes wrong: crashes and breakdowns
NAIC’s crash guidance starts with calling 911 if anyone is hurt, then trading information and collecting witness and police report details. To file a claim, call the number on the proof of insurance card as soon as possible [10]. OSHA advises reporting every crash, however minor, to the employee’s supervisor as soon as feasible [11].
After a crash or breakdown, drivers should:
- If the car can move, get well off the road and turn on the hazard lights.
- Call 911 for injuries, blocked lanes or danger.
- Call your organization’s 24 hour contact to arrange a tow, ride or hotel.
- Photograph the scene, vehicles, plates and damage.
- Call your own insurer for a personal car, or the rental company’s damage line for a rental.
- File your employer’s crash report within 24 hours. Report near misses too.
- Don’t drive again that day if you’re hurt or shaken. The employer pays for the ride home.
Print these steps and the key phone numbers on a glovebox card for every driver.
Frequently asked questions
Does my employer’s insurance cover me in my own car?
It depends on the policies. Your personal policy may exclude business related liability. Some employers carry commercial coverage for vehicles they don’t own [3]. Ask both before you drive.
Is my commute considered work driving?
Usually not, under the definition used in federal crash research [7]. Trips with work stops, business travel and callouts are often treated differently. Check your employer’s written policy.
What is the IRS mileage rate for 2026?
It is 72.5 cents per mile for business driving from January 1 through June 30, 2026 [4]. It is 76 cents per mile for driving on or after July 1, 2026 [5].
Should I buy the rental company’s damage waiver on a business trip?
Follow your employer’s travel policy. The FTC notes that employer insurance may cover business rentals. It adds that credit card protection may require declining the waiver [12].
Does the company phone policy apply in my own car?
It should on every work trip. NIOSH advises banning the use of company issued phones while driving a personal vehicle [15].
The bottom line
Recommendation from Safety Behind the Wheel Foundation
Treat every car that does your organization’s work as part of your fleet. Set a fair vehicle and insurance standard. Teach people to learn a rental before they drive it. Then build pay and travel rules that make the safe choice the easy one.
Related articles
- Workplace motor vehicle safety program: a step by step employer guide
- Driver qualification for work: license checks, MVRs and who may drive
- Journey management for work drivers: weather, breakdowns and check ins
- Vehicle recalls and safety defects: how to check, fix and report
- Work driving fatigue: safer shifts, schedules and trip rules for employers
Sources and further reading
- 1CDC National Institute for Occupational Safety and Health. Preventing Work-Related Motor Vehicle Crashes (fact sheet). DHHS (NIOSH) Publication No. 2015-111. March 2015. cdc.gov/niosh/docs/2015-111 (PDF)
- 2National Highway Traffic Safety Administration. Passenger Vehicle Occupant Injury Severity by Vehicle Age and Model Year in Fatal Crashes (Traffic Safety Facts Research Note). DOT HS 812 528. April 2018. crashstats.nhtsa.dot.gov/…/812528
- 3National Association of Insurance Commissioners. Small Business (consumer insurance page). No date shown; accessed October 2026. content.naic.org/consumer/small-business.htm
- 4Internal Revenue Service. IRS Sets 2026 Business Standard Mileage Rate at 72.5 Cents per Mile, Up 2.5 Cents (news release IR-2025-128; Notice 2026-10). December 29, 2025. irs.gov/newsroom
- 5Internal Revenue Service. Announcement 2026-11 (revised 2026 standard mileage rates, modifying Notice 2026-10). Internal Revenue Bulletin 2026-29. July 13, 2026. irs.gov/irb/2026-29_irb
- 6CDC National Institute for Occupational Safety and Health. Motor Vehicle Safety at Work. Updated May 16, 2024. cdc.gov/niosh/motor-vehicle/about
- 7CDC National Institute for Occupational Safety and Health. NIOSH Center for Motor Vehicle Safety Strategic Plan, 2020 to 2029. DHHS (NIOSH) Publication No. 2020-126. June 2020. cdc.gov/niosh/docs/2020-126 (PDF)
- 8Insurance Institute for Highway Safety. Young Driver Safety (research area; vehicle selection and electronic stability control). Updated May 2026. iihs.org/research-areas/teenagers/young-driver-safety
- 9National Highway Traffic Safety Administration. Check for Recalls: Vehicle, Car Seat, Tire, Equipment. No date shown; accessed October 2026. nhtsa.gov/recalls
- 10National Association of Insurance Commissioners. A Consumer’s Guide to Auto Insurance (AUT-PP). 2022. content.naic.org (PDF)
- 11Occupational Safety and Health Administration. Motor Vehicle Safety: Employers. No date shown; accessed October 2026. osha.gov/motor-vehicle-safety/employers
- 12Federal Trade Commission, Consumer Advice. Renting a Car. Updated September 2023. consumer.ftc.gov/articles/renting-car
- 13National Highway Traffic Safety Administration. Driver Assistance Technologies. No date shown; accessed October 2026. nhtsa.gov/vehicle-safety/driver-assistance-technologies
- 14AAA Foundation for Traffic Safety; McDonald A, Carney C, McGehee DV (University of Iowa). Vehicle Owners’ Experiences with and Reactions to Advanced Driver Assistance Systems. September 2018. aaafoundation.org/research/vehicle-owners-experiences…
- 15CDC National Institute for Occupational Safety and Health. Distracted Driving at Work. Updated February 16, 2024. cdc.gov/niosh/motor-vehicle/distracted-driving
This article reflects the safety priorities of occupational road safety and risk management. It is general education, not legal, tax, insurance or professional advice for any person or organization. Laws, rates, insurance products and vehicle features change. Verify details with official sources, your insurer or broker, and qualified counsel. Reviewed October 2026.
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