Company car: who pays for the insurance?

You are entitled to a company car as an employee. But who then has to pay for the insurance contract? We will explain everything to you.

Like many employees, you are lucky enough to have a company car, made available to you by your company. A benefit in kind that can be very interesting, especially financially, since you no longer have to use your own vehicle. This means less out-of-pocket expense and less wear and tear, since you can drive only your professional car, even during your holidays. In some cases, it is also possible to occasionally lend the vehicle to your spouse, provided that your employer agrees and that you report it to your insurance company. But speaking of that, a question often arises: who should pay the annual or monthly subscription? You, or your employer? Don’t worry, we are going to answer this very common question among employees.

Compulsory insurance

Before answering this question, it is necessary to make a major clarification, which may seem obvious: insurance is compulsory. As for a private vehicle, it is strictly forbidden to drive without being covered, as recalled in article L211-1 of the Highway Code ” Any natural person or any legal person other than the State, whose civil liability may be incurred on account of damage suffered by third parties resulting from damage to persons or property in the making of which a vehicle is involved, must, in order to circulate this one, be covered by insurance guaranteeing this liability“.

Several scenarios

The company vehicle must be insured by its owner, ie the company if it has purchased it, or by the rental agency. If the employee drives a professional car that is not covered, he may then be penalized for using a uninsured vehicle. If you cannot drive because it is not yet covered, your employer cannot hold you responsible for lost work time.

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