Who Pays for Damage to a Company Car?

California is an at-fault state for car accidents, meaning that victims will receive compensation for their injuries if pursuing damages from the at-fault driver (or other responsible parties). Moreover, under California law, if multiple parties are held responsible for a car accident, they are all responsible for paying the damages for the accident depending on the proportion to their percentage of fault.

If you have been involved in a car accident with someone driving a company car, you may wonder who needs to pay for the damages or injuries caused. Firstly, if the employee has caused your injuries due to their neglect or negligence, the employer may be found liable. There are still some exceptions, as seen on the King Law Firm.

When is the Employer Liable?

Generally, the person who causes an accident is at-fault. However, third parties (such as employers) can be held responsible for car accidents under California laws. To be more precise, if an employee is working and acting within the scope of their duties at the time of the accident, the employer will most likely share fault for the car accident.

According to California law, an employee acts within the scope of their job if they meet the following conditions at the time of the accident:

• The accident happens within the authorized time and space limits of the employee’s position
• The employee was engaged in work-related activities to the employer’s benefit
• The employee was hired and authorized to drive and operate a vehicle as part of their job

In addition, an employer can be held responsible for the injuries and damages caused by their employees in a car accident if they were not supervised, adequately trained, or vetted during the hiring process. For instance, if a company hires someone known to have a history of reckless driving charges, the employer most likely is liable for any accidents caused by this employee.

When is the Employee Liable?

There are times when the employer is not liable for the damages or injuries caused in a company car accident. Some examples of when the employee may be liable for car accident damages includes but is not limited to:

• The employee was not engaged in work-related activities at the time of the accident
• The employee was commuting to or from their job (unless they were required to make some work-related stops while on the way)

Insurance Coverage for Third-Party Claims

Suppose you have been injured in a company car accident. In that case, you should seek compensation for your injuries, including medical expenses, lost wages, lost future earnings, property damage, loss of care, or pain and suffering.

When you file a car accident claim with another driver’s insurance company or take any legal actions against the at-fault driver, you seek compensation through their liability insurance. Under California law, the minimum required liability insurance coverage is:

• $15,000 for bodily injury per single injured person
• $30,000 total for bodily injury per accident
• $5,000 for property damage

In California, it is also mandatory for all drivers to have the following insurance coverage for accidents involving uninsured drivers:

• $15,000 per person for bodily injuries
• $30,000 per accident for bodily injuries
• $3,500 per accident for property damage

There are no two cases alike, as car accident circumstances in company vehicles can differ from situation to situation. While you may wonder who is liable for the damages or who will pay for any medical expenses, car damages, and the like, it is advised to contact an experienced car accident attorney to discuss your options.
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