What is Company Car Tax?
Company car tax, often referred to as Benefit in Kind (BIK) tax, applies when you use a vehicle provided by your employer for personal use. It's considered a taxable benefit, meaning HM Revenue & Customs (HMRC) treats the value of this benefit as income, upon which you pay income tax. The specific amount you pay depends on the car's list price, its CO2 emissions, and your personal income tax band.
- Tax is based on car's list price and CO2 emissions.
- Applies to personal use of an employer-provided car.
- Paid via income tax, often through your tax code.
- EVs and low-emission cars have lower tax rates.
- Changes to tax rules can affect future costs.
For many employees, a company car offers convenience and can seem like a significant perk. However, it's crucial to grasp the tax liabilities involved to avoid surprises. The system is designed to tax the benefit derived from having private access to a vehicle that would otherwise be a business expense for your employer. This is calculated as a percentage of the car's value, rather than a flat rate, making newer, more expensive, or higher-emission vehicles generally incur a higher tax bill.
The tax is collected through your income tax payments, typically by HMRC adjusting your tax code. This means a portion of your monthly or annual tax liability is directly attributed to your company car benefit. For businesses, understanding these rules is also paramount, as they have obligations regarding reporting these benefits to HMRC, often via P11D forms.
The Benefit in Kind (BIK) Calculation Explained
The core of company car tax is the BIK charge. This is calculated using a formula set by HMRC, which has evolved over the years, particularly to encourage uptake of lower-emission vehicles. The fundamental components remain consistent: the car's P11D value (which is the car's list price when new, including optional extras and delivery charges), its CO2 emissions percentage, and your personal income tax rate.
The formula is generally structured as: P11D Value × CO2 Emissions Percentage × Your Income Tax Rate.
For instance, if a car has a P11D value of £30,000 and its CO2 emissions place it in a 20% BIK band, the annual taxable benefit would be £6,000 (£30,000 × 20%). If you are a basic rate taxpayer (20%), your annual tax bill for this benefit would be £1,200 (£6,000 × 20%). A higher rate taxpayer (40%) would pay £2,400 (£6,000 × 40%).
Understanding the CO2 Emissions Percentage
The CO2 emissions percentage is the variable that most significantly impacts your BIK tax. HMRC publishes tables that link a car's CO2 emissions (in grams per kilometre, g/km) to a specific percentage. For petrol cars, the percentage starts at a lower rate for very low emissions and increases as the CO2 output rises. Diesel cars have historically incurred a surcharge on top of their emissions percentage, though this is being phased out.
However, the landscape for electric and ultra-low emission vehicles (ULEVs) is different. Zero-emission cars (those with 0 g/km CO2) currently attract a very low BIK rate, making them financially advantageous from a tax perspective. For example, a car with 0 g/km CO2 might have a BIK rate of just 2%. This means the annual taxable benefit for our £30,000 car example would be only £600 (£30,000 × 2%), leading to a tax bill of £120 for a basic rate taxpayer.
It is essential to check the HMRC-approved BIK rates for the specific tax year applicable to your company car. These rates can change, and while current incentives for low-emission vehicles are substantial, future tax policies could alter the financial picture.
P11D Value: The Foundation of Your Tax Bill
The P11D value is the car's list price when it was first registered, including VAT, any manufacturer-fitted options chosen by the first owner, and delivery charges. It is not the price you might negotiate today or the current market value. This figure is reported by your employer on the P11D form submitted to HMRC. If you have a company car, you should receive a copy of this P11D or a statement detailing the benefit. This initial list price forms the bedrock of your company car tax calculation.
It's worth noting that 'optional' extras fitted by the manufacturer at the point of sale are included in the P11D value, even if you didn't choose them. Aftermarket accessories fitted by the dealer or yourself do not typically add to the P11D value for tax purposes. Understanding what constitutes the P11D value is critical, as any ambiguity or error here can lead to an incorrect tax assessment.
If you believe the P11D value reported is incorrect, you should discuss this with your employer, as they are responsible for its accurate declaration to HMRC. Incorrect P11D values are a common source of overpaid tax.
How Much is Company Car Tax for Electric Vehicles?
Electric vehicles (EVs) currently offer significant tax advantages for company car drivers due to their zero tailpipe emissions. For the tax year, zero-emission cars have a BIK rate of just 2%. This applies to cars with CO2 emissions of 0g/km. This exceptionally low rate means the taxable benefit is minimal compared to traditional petrol or diesel cars.
For example, a brand-new electric car with a P11D value of £40,000 and 0 g/km emissions would have an annual taxable benefit of £800 (£40,000 × 2%). For a basic rate taxpayer, the annual tax due would be £160 (£800 × 20%), and for a higher rate taxpayer, it would be £320 (£800 × 40%). This makes electric company cars one of the most tax-efficient options available.
The Appeal of Low-Emission Company Cars
The government's incentive for EVs and very low-emission vehicles is clear: to encourage a shift away from fossil fuels. This is reflected directly in the BIK tax structure. Cars with higher CO2 emissions attract increasingly higher BIK percentages. For instance, cars emitting between 51-54 g/km might have a BIK rate of 14%, while those emitting over 150 g/km could be in the 37% band.
The specific BIK percentage for a company car is determined by its CO2 emissions and is set by HMRC for each tax year. It's crucial to consult the official HMRC tables for the relevant tax year to find the exact percentage applicable to a car's emissions. These tables are updated annually, and while the low rate for EVs is expected to remain attractive for some time, it's wise to stay informed about any potential changes in tax policy.
The difference in tax cost between an EV and a comparable petrol or diesel car can be substantial. For many employees, this tax saving is a primary driver for choosing an electric company car. The current tax regime strongly favours zero-emission vehicles.
Understanding Hybrid Company Car Tax
Hybrid company cars fall into a slightly more complex category, with their BIK rate depending on their electric-only range and CO2 emissions. Generally, plug-in hybrids (PHEVs) are taxed based on their CO2 output, but the specific percentage can vary significantly. The government introduced specific thresholds for PHEVs to be taxed at lower rates, typically for cars emitting below 50 g/km and with a minimum electric-only range.
For example, a PHEV might be taxed at 12% if it meets certain criteria. However, if its electric-only range is below the threshold or its CO2 emissions are higher, it could be taxed at a much higher rate, potentially similar to a conventional petrol car. It is vital to verify the specific BIK rate applicable to any hybrid model, as the electric-only range is a key factor.
Your employer's fleet manager or HR department will be able to provide the exact BIK percentage for a specific hybrid model. They will use the car's official CO2 emissions and electric-only range figures to determine its tax band. Always confirm this figure, as misunderstanding the hybrid's tax classification can lead to an incorrect tax bill.
Factors Affecting Your Company Car Tax
Beyond the car's intrinsic qualities (P11D value and emissions), other factors influence the actual tax you pay. Your personal income tax band is paramount. A basic rate taxpayer pays half the tax of a higher rate taxpayer on the same taxable benefit. Salary sacrifice schemes can also impact your tax. In such schemes, you agree to a reduction in your gross salary in exchange for the company car. While this can reduce your overall taxable income, it also reduces your take-home pay and can affect other benefits linked to your salary, such as pension contributions.
Changes to your personal circumstances, such as a change in tax band, can also alter your company car tax liability. Similarly, if your employer provides you with a new company car, or if you add optional extras that increase the P11D value, your tax will change accordingly. It is always advisable to recalculate your estimated tax liability when considering a new company car or making changes to your current one.
Always request a detailed breakdown from your employer showing how your company car's BIK value and subsequent tax deduction have been calculated.
What If I Use My Company Car Only for Business?
If your company car is genuinely used exclusively for business purposes and is kept at your employer's premises overnight and during weekends, you may be able to avoid Benefit in Kind (BIK) tax. This is known as the 'limited private use' exemption. However, the rules around this are strict and require meticulous record-keeping.
To qualify, you must not use the car for any private journeys. This includes commuting to and from your normal place of work, which is generally considered a private journey unless you are required to travel to multiple work locations or your employer's premises are not your normal base. Any private mileage, no matter how small, can invalidate the exemption.
The Strict Definition of 'Private Use'
HMRC's definition of private use is broad. It includes: any travel between your home and your normal place of work, any other travel that is not for business purposes, and any use by your spouse or partner. Even if you claim you never use it privately, if the car is available for your private use, HMRC may still assess it as a taxable benefit.
To prove exclusive business use, you typically need a robust mileage log. This log should detail every journey, its purpose, and the mileage. In cases where a car is genuinely only used for business, employers will often have policies in place to ensure this, such as storing the car securely at the business premises outside of working hours.
If you are provided with a company car and believe it should be exempt from BIK tax due to exclusive business use, it is crucial to discuss this thoroughly with your employer's HR or finance department. They will need to ensure all conditions are met and that the necessary declarations are made to HMRC. Failure to comply can result in penalties for both you and your employer.
What if I have a Company Van for Personal Use?
The tax rules for company vans differ from those for company cars. Generally, if a company van is provided solely for business use and any private use is 'incidental' (e.g., a one-off trip to the tip), there is no BIK tax charge. However, if the van is used for regular private journeys, including commuting, a taxable benefit arises.
The BIK charge for a company van is usually a flat rate, which is significantly lower than for company cars. For the current tax year, the flat rate for a standard company van is often a fixed sum. There is also a separate, higher rate for zero-emission vans. Crucially, the calculation for vans does not depend on the van's list price or its CO2 emissions in the same way as cars. Instead, it's based on the flat rate plus any additional charges for accessories like sat-navs.
If you have a company van and are unsure about its tax status, consult your employer. They should provide you with a P11D statement outlining any taxable benefit. If you believe your van use is strictly for business, ensure your employer understands this and that appropriate records are kept.
Can I Avoid Company Car Tax by Paying My Employer?
Some employees consider paying their employer a sum of money to effectively 'buy out' the private use of their company car and avoid BIK tax. However, HMRC rules generally do not allow this. The taxable benefit is calculated based on the car's value and emissions, not on any payment you might make to your employer to cover this benefit. Your employer cannot simply reduce your BIK charge by accepting a payment from you.
The only exception might be if you were to pay an amount equivalent to the *full* fuel benefit charge (if applicable) or a proportion of the car's BIK value, and this payment was documented as such. However, this is complex and often not financially beneficial. The most straightforward approach is to understand the BIK calculation and accept it as part of the overall remuneration package. Any agreement to pay your employer to reduce your tax burden should be discussed in detail with both your employer and a tax professional.
How to Calculate Your Company Car Tax
Calculating your company car tax involves a few key steps, primarily focusing on the Benefit in Kind (BIK) value and then applying your personal income tax rate. You need to know the car's P11D value, its CO2 emissions figure, and your income tax band (basic rate 20%, higher rate 40%, or additional rate 45%).
First, determine the BIK percentage for your car. This is found by looking up the car's CO2 emissions (g/km) in the official HMRC tables for the relevant tax year. For example, a car with 120 g/km CO2 emissions might fall into a 25% BIK band. For zero-emission cars, this percentage is very low, often 2%.
Step-by-Step BIK Calculation
Step 1: Find the Car's P11D Value. This is the manufacturer's list price when new, including VAT, options, and delivery charges. You should be able to find this on your P11D form or by asking your employer.
Step 2: Determine the BIK Percentage. Consult the HMRC BIK rate tables for the current tax year, matching your car's CO2 emissions to the applicable percentage.
Step 3: Calculate the Annual Taxable Benefit. Multiply the P11D value by the BIK percentage. For instance, a car with a P11D of £25,000 and a 20% BIK rate results in an annual taxable benefit of £5,000 (£25,000 × 20%).
Step 4: Calculate Your Annual Tax Liability. Multiply the annual taxable benefit by your personal income tax rate. If you are a basic rate taxpayer (20%), a £5,000 taxable benefit means £1,000 in tax (£5,000 × 20%). A higher rate taxpayer (40%) would pay £2,000 (£5,000 × 40%).
This calculation gives you the total tax you will owe for the year. It is usually collected via an adjustment to your tax code, meaning your monthly or weekly tax deductions will be higher.
What About Company Car Fuel Benefit?
If your employer also provides fuel for your private use of the company car, this incurs an additional BIK charge. This is calculated separately from the car's BIK charge. The fuel benefit is calculated as the car's BIK percentage multiplied by a statutory fuel benefit multiplier. This multiplier is updated annually by HMRC.
For example, if the statutory fuel benefit multiplier is £2,000 and your car's BIK percentage is 20%, the additional taxable benefit for fuel is £400 (£2,000 × 20%). This £400 is then added to your total taxable benefit, and your income tax is calculated on the combined amount.
If you choose not to have the private fuel paid for by your employer, you can avoid this additional tax charge. Many employees opt out of the fuel benefit, particularly if they can cover their private mileage costs more cheaply through personal means, or if they want to reduce their overall taxable benefit.
Tools and Resources for Checking Your Tax
While you can perform the calculations manually, numerous online company car tax calculators are available. These tools can help you estimate your tax liability based on the car's P11D value, CO2 emissions, and your tax band. They often also factor in the fuel benefit. These calculators are excellent for comparing different car options before making a decision.
Always use official HMRC guidance or a reputable tax calculator to check your company car tax. The figures can change year to year, so ensure you are using up-to-date information. Your employer's HR or fleet department should be able to provide you with the exact P11D value and BIK percentage for your vehicle, enabling you to perform an accurate personal calculation.
Can I Change My Company Car Tax?
While you generally cannot directly 'change' the tax rate itself, as it's set by HMRC based on the car's specifications and emissions, you can influence your company car tax liability. This typically involves making decisions about the vehicle you choose or how you use it. Changes to your personal tax code or income can also alter the final amount of tax you pay.
The most significant way to alter your tax is by choosing a car with lower CO2 emissions or opting for a zero-emission vehicle like an electric car. Since the BIK tax is a percentage of the car's P11D value, a lower percentage directly translates to a lower taxable benefit and, therefore, less tax to pay. For example, switching from a high-emission petrol car to an equivalent electric car can slash your annual tax bill dramatically.
Choosing a Tax-Efficient Company Car
When selecting a company car, consult the official HMRC BIK rate tables for the relevant tax year. These tables show the percentage charge for different CO2 emission bands. Prioritising vehicles that fall into lower emission bands will result in lower tax. Zero-emission cars (0 g/km CO2) currently sit at the lowest BIK percentage, making them the most tax-efficient choice for many.
Consider the P11D value as well. While emissions are key, a lower list price for a car within the same emission band will also result in a lower taxable benefit. Compare the P11D value and the BIK percentage to understand the total tax impact of different vehicle options.
Don't forget the fuel benefit. If your company car comes with free private fuel, this adds a significant amount to your taxable benefit. If you do not use the car for much private mileage, or if you can cover your private fuel costs more cheaply, opting out of the fuel benefit can substantially reduce your overall tax liability.
What if My Personal Circumstances Change?
If your personal circumstances change, your company car tax might also change. For example, if you move into a higher income tax bracket (e.g., from basic rate to higher rate), the tax you pay on your company car benefit will increase. This is because the BIK charge is multiplied by your personal tax rate.
Conversely, if your income decreases or you move into a lower tax bracket, your company car tax liability will decrease. If you are unsure about your tax code or how changes in your income affect your tax liabilities, it is advisable to contact HMRC or consult a tax professional. They can help clarify your specific situation and ensure your tax code is updated correctly.
Can I Cancel My Company Car Tax?
You cannot 'cancel' company car tax as long as you have a company car and use it for private journeys. The tax is a statutory requirement for the benefit received. However, you can stop incurring company car tax by returning the company car to your employer. Once the car is returned and no longer available for your private use, the BIK benefit ceases, and so does the associated tax charge.
If you decide that the cost of company car tax and the associated deductions from your salary are too high, or if your needs change, surrendering the car is the only way to eliminate this specific tax liability. Discuss the process of returning a company car with your employer well in advance, as there may be contractual terms or notice periods involved.
Company Car Tax vs. Personal Car Tax
The tax on a company car is fundamentally different from the tax you pay on a personally owned vehicle. For a company car, you pay Benefit in Kind (BIK) tax on the private use of a vehicle provided by your employer. This tax is calculated based on the car's P11D value and CO2 emissions, and it's paid through your income tax.
For a personal car, the primary tax is Vehicle Excise Duty (VED), commonly known as car tax. The amount of VED you pay depends on the car's age, its CO2 emissions (for cars registered after a certain date), and fuel type. For newer cars, VED can be £0 if they emit very little CO2 or are electric. Older cars may have a flat rate depending on their engine size.
Understanding Your Personal Car Tax (VED)
Vehicle Excise Duty (VED) is what you pay to legally drive a car on UK roads. The system for calculating VED has changed over the years. For cars registered from 1 April 2017 onwards, the system is based on CO2 emissions for the first year and then a standard rate for subsequent years, with supplements for cars over a certain value.
For example, a new car with 0 g/km CO2 emissions (like an electric car) would pay £0 VED in its first year and usually £0 in subsequent years under the standard rate. However, if the car's list price exceeded £40,000 when new, an additional 'expensive car' supplement would apply for five years from the second year of registration.
For cars registered before 1 April 2017, VED is based on CO2 emissions alone. A car emitting less than 100 g/km might pay £0 VED, while a car emitting over 225 g/km could cost well over £600 per year.
You can check how much car tax your personal vehicle should pay using the GOV.UK website. This involves entering your car's registration number. The key difference is that VED is a road tax, whereas company car tax is an income tax on a benefit.
Company Car vs. Personal Car: Financial Comparison
The financial comparison between having a company car and running your own personal car is complex and depends heavily on individual circumstances. A company car often includes fuel, insurance, and maintenance, which are bundled into your employment package. However, the BIK tax can be substantial, especially for higher-emission vehicles.
Running a personal car involves direct costs such as purchasing the car, VED, insurance, fuel, servicing, repairs, and MOTs. While you avoid BIK tax, you bear all these costs directly. For many, the convenience and predictable deductions of a company car, particularly a low-emission one, can be appealing.
When comparing, consider: the total annual cost of company car tax plus any salary sacrifice; the cost of running your own car (purchase, VED, insurance, fuel, maintenance); and your personal usage patterns. Electric company cars are currently very tax-efficient, often making them more cost-effective than running a similar-sized petrol or diesel car privately, especially when factoring in the cost of fuel and maintenance included with the company car.
What if I Sell a Company Car?
If you were to purchase your company car from your employer, you would then own it personally. The BIK tax would cease as you would no longer be receiving it as a benefit from your employer. Instead, you would be responsible for all associated costs as a private owner, including VED, insurance, and maintenance.
The price at which you can buy your company car would be subject to negotiation with your employer. This price would likely be influenced by the car's age, mileage, and market value. Once purchased, it becomes your personal vehicle, and you would pay VED based on its specifications. The decision to buy a company car depends on whether the purchase price and subsequent running costs are more favourable than continuing with the BIK tax.
Navigating Company Car Tax Rules
Navigating company car tax rules requires understanding how BIK is calculated, staying informed about changes to tax legislation, and ensuring accurate reporting by your employer. The system is designed to tax the personal benefit derived from having a company-provided vehicle. For employees, this means understanding the impact on their take-home pay and overall tax bill.
For employers, it involves correctly reporting the benefit to HMRC via P11D forms and ensuring employees are aware of their tax liabilities. Keeping abreast of annual changes in BIK rates, P11D values, and fuel benefit multipliers is crucial for both parties to manage costs and compliance effectively.
Staying Informed About Tax Changes
HMRC regularly updates tax rules, including those for company cars. These changes can affect the BIK percentage, the fuel benefit multiplier, and other relevant allowances. While the government's push towards electric vehicles means these are generally very tax-efficient, it is wise to check for any updates that might affect other vehicle types.
Always refer to the latest official guidance from HMRC or consult with your employer's fleet manager or HR department for the most current information. Many websites and tax advisors offer updates on changes to company car tax. Staying informed helps you make better decisions about vehicle choices and manage your financial planning.
When to Consult a Tax Professional
While the basic calculation for company car tax is straightforward, complex situations can arise. If you have multiple cars, receive other significant benefits, or are unsure about your tax code, seeking professional advice is recommended. A tax advisor can help you understand your specific liabilities, identify potential savings, and ensure you are not overpaying tax.
This is particularly relevant if you are considering a salary sacrifice scheme, as these can have wider implications for your overall tax and National Insurance contributions. A professional can model different scenarios to help you make an informed choice about whether a company car, and which type, is the most financially beneficial option for you.
Managing Your Company Car Costs
To effectively manage the costs associated with a company car, start by understanding the full picture: the BIK tax, any fuel benefit tax, and any salary sacrifice amounts. Compare these total deductions against the perceived value and convenience of the car, including insurance, maintenance, and fuel, which are often covered by your employer.
If you are choosing a new car, prioritise models with low CO2 emissions or zero emissions. These are almost always the most tax-efficient options. Use online calculators to compare the estimated tax liability for different vehicles before you commit. A proactive approach to understanding and managing your company car tax can lead to significant personal savings.
Company Car Tax and Your P11D Form
The P11D form is a crucial document in the company car tax process. It's an annual return that employers must submit to HMRC detailing certain taxable benefits provided to employees. Your company car, and any associated fuel benefit, is one of the primary items listed on this form.
The P11D form reports the 'cash equivalent' of the benefit – essentially, the taxable value of your company car and any private fuel. This figure is then used by HMRC to adjust your personal tax code, ensuring you pay the correct amount of income tax on these benefits. You should receive a copy of your P11D from your employer, or a statement detailing the benefits, to allow you to check its accuracy.
What Information is on a P11D?
For a company car, the P11D will typically list:
- The car's registration number.
- The date the car was first registered.
- The car's P11D value (list price including VAT, optional extras, and delivery).
- The CO2 emissions figure.
- The BIK percentage applicable for the tax year.
- The calculated annual taxable benefit for the car.
- If private fuel is provided, details of the fuel benefit charge.
The sum of these taxable benefits on your P11D is the amount that will be added to your other taxable income when HMRC calculates your total income tax liability. It's essential to review this document carefully to ensure all details are correct. Errors can lead to an incorrect tax bill.
Checking Your P11D for Accuracy
Accuracy on the P11D form is vital. If you notice discrepancies, such as an incorrect P11D value for the car, or a misreported CO2 emission figure, you must raise this with your employer immediately. They are responsible for submitting accurate information to HMRC. If the P11D value is overstated, you will be taxed on more than you should be.
For example, if a factory-fitted optional extra was incorrectly included in the P11D value, or if the car's original list price was misquoted, this needs to be corrected. Your employer can amend a submitted P11D form if an error is found. If you are unable to resolve the issue with your employer, you may need to contact HMRC directly to discuss your concerns.
What Happens After the P11D is Submitted?
Once HMRC receives the P11D information, they will use it to update your tax code for the following tax year. For instance, if your P11D shows a taxable benefit of £5,000 and you are a basic rate taxpayer, HMRC will typically adjust your tax code to collect the £1,000 (£5,000 × 20%) liability through your PAYE (Pay As You Earn) system. This means your monthly or weekly tax deduction will increase by approximately £83.33 (£1,000 / 12).
It's important to note that the P11D is submitted after the end of the tax year (which runs from 6 April to 5 April). The tax code adjustment based on the P11D information usually takes effect from the following April. Your employer should inform you of the P11D benefit amounts, and you should check that these align with your understanding and the figures on your copy of the P11D.
Company Car Tax and Insurance
While company car tax (Benefit in Kind) and car insurance are both related to your vehicle, they are distinct and serve different purposes. Company car tax is an income tax liability based on the private use of a vehicle provided by your employer. Car insurance, on the other hand, is a legal requirement to cover potential financial losses from accidents, theft, or damage.
Typically, when you have a company car, your employer arranges and pays for the insurance. This often includes comprehensive cover, which is a significant benefit. You usually do not need to arrange or pay for this insurance yourself, but you must adhere to your employer's fleet policy regarding driving and usage.
Employer-Provided Insurance for Company Cars
Most employers provide comprehensive insurance for their company cars. This policy usually covers:
- Accidental damage to the vehicle.
- Theft of the vehicle.
- Third-party liability in case you cause an accident.
- Sometimes, breakdown cover and courtesy car services.
It is crucial to understand the terms of your employer's insurance policy. There may be limitations on who can drive the car (e.g., only named drivers), geographical restrictions, or excesses (the amount you might have to pay towards a claim) that apply if you are at fault. Always check your company car policy handbook for details.
Your Responsibilities Regarding Insurance
Even though your employer arranges the insurance, you still have responsibilities. You must drive the car safely and legally, adhere to speed limits, and report any accidents or damage promptly to your employer. If you fail to comply with the terms of the insurance policy or the company's fleet policy, you could be held personally liable for the costs, which can be substantial.
For instance, if you drive under the influence of alcohol or drugs, or if an accident occurs while you are driving without a valid licence, the insurance may be invalidated. In such cases, you could be personally responsible for the full cost of repairs or any third-party claims. Always ensure you are aware of and comply with your employer's specific requirements for company car usage and insurance.
What if I Want to Insure My Company Car Personally?
It is generally not possible or necessary to personally insure a company car. The employer's fleet insurance is designed to cover the vehicle for business and, typically, private use by authorised employees. Attempting to take out a separate personal insurance policy for a company car would likely be redundant and could even invalidate the employer's policy if not properly declared.
If you have specific insurance needs, such as wanting to add a particular driver not covered by the company policy, you must discuss this with your employer's fleet manager. They can advise on whether such an addition is possible under the existing policy or if alternative arrangements need to be made. Do not attempt to arrange personal insurance for a company car without explicit instruction and agreement from your employer.