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In California, many professionals, from sales reps and delivery drivers to maintenance workers and executives, use company vehicles as part of their daily work. However, when a crash occurs while driving a company car, the legal and insurance issues can become more complex than a standard auto claim.
Understanding the difference between personal and commercial auto coverage is key to knowing who is responsible, what compensation is available, and how to protect your rights after an injury. Here, our personal injury attorneys in Whittier explain.
Who Is Liable When a Crash Involves a Company Vehicle?
When driving a company car and being involved in a crash, the first question is whether you acted within the “scope of employment.” If the collision occurred while performing job duties—such as making a delivery, traveling to a meeting, or transporting supplies—then your employer may be vicariously liable for harm caused to others. In this scenario, your employer’s commercial auto insurance typically covers damages owed to third parties.
However, if you were injured while working, your remedy would likely come through a workers’ compensation claim, and possibly a personal injury claim against any other at-fault party involved in the crash. You may be eligible to pursue both if you were not at fault.
On the other hand, if you were using the company vehicle for personal errands, were off the clock, or were engaged in reckless behavior like drinking and driving, the employer may dispute liability and refuse coverage. In these cases, your auto insurance could become involved, and determining who is responsible may require legal intervention.
Commercial vs. Personal Auto Insurance: What’s the Difference?
Commercial auto insurance is designed to cover vehicles used for business purposes. These policies typically provide higher liability limits and broader coverage than personal auto insurance.
Coverage usually applies to:
- Company-owned vehicles are driven by employees for business tasks.
- Vehicles leased or rented by the company.
- Incidents involving third parties while the employee is working.
Personal auto insurance generally excludes coverage for business use—unless the driver has specific endorsements or a rideshare/commercial policy add-on. If your employer argues that you were not working during the crash, your auto insurer may be forced to step in, or you may find yourself stuck between two insurers trying to deny the claim.
Can You File a Workers’ Compensation Claim Too?
You may also be eligible for workers’ compensation benefits if you were injured while driving a company vehicle during work hours.
In California, this can include:
- Medical treatment.
- Temporary or permanent disability benefits.
- Mileage reimbursement.
- Vocational rehabilitation (if needed).
Workers’ compensation is a no-fault system in California, meaning you can receive benefits even if the crash was partially your fault. However, it does not compensate for pain and suffering, so you may still have the right to pursue a third-party personal injury claim if another driver was at fault.
How Our California Personal Injury Attorneys Can Help
At Hanning & Sacchetto, LLP, we understand the legal complications of a work-related crash involving a company vehicle. We’ll examine your employment status, the insurance policies involved, and the details of your injury to determine the best path forward—whether it’s a workers’ compensation claim, personal injury lawsuit, or both.
If you were injured while driving a company car in California, contact our experienced Los Angeles County auto accident attorneys at (562) 280-2095 or online today for a free consultation. We’ll fight to ensure you get the full compensation you’re entitled to—no matter how complex the case.