Accidents in Company Vehicles – What Happens When a Company Car is Involved in an Accident?

Driving a company car is a practical reality for a significant majority of the UK’s driving population – and the number of company cars on UK roads continues to rise. Indeed, a recent report from the Society of Motor Manufacturers and Traders (SMMT) revealed that annual fleet and business car registrations passed the half-million mark in 2024, a first and a signifier that company vehicles continue to outnumber private vehicles on the road.

This majority makes for a compelling argument as to the increased risk of company cars being involved in an accident on UK roads. Regardless this argument, it is crucial that both individuals and businesses understand the necessary steps to follow in the aftermath of an accident involving a company car.

1. Immediate Actions Following an Accident

The immediate steps taken after an accident with a company car are, more or less, exactly the same as in any other road traffic accident scenario. Your primary responsibility is to ensure the safety of everyone on the scene, starting with passengers in your vehicle and then moving on to passengers in other involved vehicles. If you yourself are injured, you should not make any immediate attempts to move yourself until medical assistance arrives.

In the event of a less-impactful accident, your next priority should be to gather as much information you can regarding the accident. This includes trading details with others involved but also extends to getting eyewitness information about the accident. This will be useful later. As a final point, make sure not to admit fault at the scene, whether or not you feel yourself to be at fault; this is not your responsibility to litigate straight away, and could get in the way of potential insurance settlements later on.

2. Reporting the Incident to Your Employer

As a matter of urgency, you should also report the accident to your employer. Your employer is the insurance holder for your company car, likely via a fleet insurance policy that covers multiple company vehicles. You should also report to your own insurer, though, as the accident can have impacts for your own car insurance.

You are also reporting to your employer on account of having suffered an accident at or relating to work; this means the details of your accident should be reported in your company's accident book, which is a legal requirement for employers to maintain.

3. Liability Considerations

Your employer is responsible for handling the insurance side of the equation with respect to the accident, but this does not lock you out from seeking compensation yourself; car accident claims where the vehicle involved was a company car are common, and your rights to compensation as a driver are not necessarily impacted.

This goes both ways, though, as you are not free from potential liability with respect to the accident either. For instance, in the event that you were personally responsible for the accident by way of dangerous driving, you may be pursued for costs relating to the accident.