Company cars are a very good complement if you are offered a job. Usually, this cars are always given by the company to assist you. This car helps you get to your place of work easily. Company cars are always changed from time to time. This would mean that your car may be changed to a new model frequently. Your company would be in charge of paying your road tax. Apart from tax, the insurance fee for the car would need to be determined. The question then arises: For a car owned by a limited company insurance, who pays for the insurance?
This article is designed to talk about the premium paid for a company car. Let’s proceed!
Who Pays The Premium Of A Company Car?
In most cases, company cars are insured by the parent company. Usually, these cars are under fleet insurance policy cover. In some cases, some companies may ask you to pay for the insurance premium.
At the same time, the car must be insured by the owner of the car. So, technically, the company owns the vehicle. As a result, they are charged with the responsibility of insuring the car.
What Is A Company Car?
A company car is a vehicle that is offered by the organization to the employee. This vehicle may be used for household and business movement. In the UK, cars are usually offered to people with a high tendency to travel in their jobs. However, it may also be given to employees as a sign of reward or a manner of incentive.
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How Does A Company Car Scheme Work?
A company car scheme work is usually available to people in high-ranking positions. However, a car can also be given to people with the tendency to travel. Usually, companies also cover the cost of gas and petrol for the car.
Company cars are incentives welcomed by the employee. The cost of obtaining and maintaining the company car is usually done by your employer. It is also pertinent to note that the employee must also pay for Benefits In Kind (BIK).
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Who Pays Insurance For Company Taxis?
Taxi premiums are usually paid by the taxi company. But, in most cases, it is also borne by the driver of the taxi. This is true because if you operate on apps like Uber, you would be required to pay road tax. However, the taxi company can pay for tax if they own the car.
FAQ
Who pays for accidents in company vehicles UK?
Employers in the UK have a duty of care to ensure the safety of their employees, so they are generally responsible for the cost of repairs to a company car if an accident occurs while the employee is driving it for work purposes. If you or your family use a company car privately, including for commuting, you must pay tax on the value of the car, which is based on factors such as the cost of purchasing it.
Can you use a company car for personal use UK?
Should you or your family use a work automobile for personal reasons, including commuting, you will have to pay taxes. You pay tax on the corporate car’s value to you, which is determined by factors such as its purchase price and fuel type. The worth of the car is diminished if you use it part-time.
Does car insurance pay for all the damage?
Some comprehensive insurance plans cover damage to your car.
Conclusion
To conclude, the car owned by a private company is to be insured by the employer. In some cases, the employer pays for this product. Thank you for reading.
