A corporate rental car policy can save your business time and, more importantly, money when it comes to employee car usage. Renting a car offers many benefits over traditional company car arrangements, but it's a balancing act. You've got to maintain a good relationship with the rental agency. This starts with a strict policy to protect both you and your employees.
There are risks to factor in, as well. Some are more obvious than others, like potential car accidents while the car is in your possession. Others may be less predictable, like unexpected parts failure or an act of God.
This is why a rental car policy is so essential if you rent a company vehicle, consistently. This is insurance designed to protect you and your employees in the event of any unforeseen incidents. It also helps to prevent drivers clocking in mileage over and above the IRS standard, and making various other missteps out on the road.
To that purpose, you're going to want to invest in a comprehensive platform to help you manage this process. In this article, we have elaborated on the guidelines you should consider while drafting your corporate rental car policy and how a TEM software can help you achieve compliance with the same.
How can a TEM software help with a corporate rental car policy
A travel and expense management software allows businesses to create short itineraries. This can be done based on an employee's specific parameters.
Travelling employees can enter the time and date, as well as their preferred method of travel for a trip.
The application will create plans based on which items need to be reserved for the trip. This encourages accountability because there is a complete record of everything.
Any process that creates transparency is good for keeping everyone in line. There's no confusion or informal records of what was and wasn't in good shape before the trip. There are just facts, and facts are the perfect motivator.
That said, you're going to need an effective corporate rental car policy in place if you're going to hold anybody accountable.
Policy guidelines to consider while drafting a corporate rental car policy
In a perfect world, you'd download a company vehicle policy template, fill in a few of the blanks, and be done in five minutes. But corporate trips can present strange and unexpected problems in dozens of different ways.
Like a traditional company vehicle policy, a corporate car rental policy should include:
An outline of which employees qualify to rent vehicles on behalf of the company
Requirements for eligibility to drive a rented vehicle
Basic rules of conduct when using the vehicle
The disciplinary consequences of misusing the vehicle
Your employee use of company vehicle policy governs the rental process, making it a great preventative asset. It's also an effective way to protect yourself from liability if they misuse the vehicle, and it results in a third party injury.
Basic guidelines of a corporate rental car policy
There are some basic guidelines for putting together your company’s car rental policy. Start with an introduction that outlines what the policy will contain. Continue with why the information is essential to the company, the driver and the employee.
Next, add in a full outline of your company's rental car administration. Include your selection process, accident control expenses, and recordkeeping. Make sure also to include grounds for loss of eligibility.
Following this, outline your driver eligibility requirements. Be thorough with this, including:
Your corporate vehicle selection process comes next. Include guidelines on how to select and order specific vehicles. Give the complete considerations for each choice, based on use and life cycle cost analysis.
Include delivery and acceptance procedures, describing the vehicle pickup and drop-off process. You'll also include information on handling issues and discrepancies with the vehicle once picked up.
Vehicle use is next and is one of the more extensive parts of most policies. Issues like tobacco use and eating in the vehicle are apparent touchpoints. But it's essential to be thorough here as well.
This section will outline your record keeping policy for the vehicle. This also includes how to return the car to the rental agency. Make sure to include contact names and phone numbers. Instruct drivers on acquiring temporary transport in the event of a collision, and to decline collision waivers.
You'll also want a full outline of the following:
Fuelling procedures and recommended fuel types
Expense report usage
Traffic violation disclaimers that absolve your business of responsibility
Include maintenance policies in case of a breakdown as well as insurance coverage and exclusions. At all times, ensure you include as much relevant information as possible.
How to achieve compliance on your corporate rental car policy
Drafting an effective corporate car rental policy is only one side of the coin. Ensuring compliance with the policy is the other. This is where Fyle can help.
Fyle helps to ensure policy compliance with customizable features. Real-time travel and expense policy management makes policy implementation a breeze. Not only that, but it encourages employee compliance by simplifying the process.
Professional expense report services integrate into a single mobile app for faster reimbursements. Also, it's a trustworthy resource for quick and efficient data management.
Real-time analytics into your employee spends means less time and money wasted on duplicate expenses. With a comprehensive corporate rental car policy, you've got everything you need to promote compliance at every step.
Do more with a better corporate rental car policy
Renting a vehicle for corporate use has a lot of benefits, as we've mentioned. What's important is knowing how to keep a tight reign on expenditures, safe usage, and corporate compliance. With an excellent corporate rental car policy in place, you and your company will be well on your way.
Are you interested in learning more about better business management processes to keep your company on top? Check out some of our other blogs, or get in touch today to find out more about our outstanding expense management software.