Personal car breakdown when on business use - who pays for repairs?

littlesnuggy

On Tuesday morning, I was driving my (own personal) car to a business meeting, approx 45 miles from home. On route, my car made a horrendous metallic ‘falling apart’ noise, so I pulled over, had a look and couldn’t see anything wrong, so decided to continue to my destination. Had the meeting, and at the end of the day my colleague went for a drive around the block with me to see if he thought there was anything wrong with the car – it was making a clunking noise, so I called the rescue services that I have through my insurance. Turns out one of my front springs in the suspension was completely broken, so it was towed to a garage and I got a lift home with my colleague.
The car has now been fixed to the tune of £285, and I somehow have to arrange to collect my car, which is now 70 miles from home!

My question is, as I was using my own car for business use, can I get my employer to pay for any of the repair costs? Nearly all other employees at the company who are required to travel have company cars, but I’m relatively new (6 months) and don’t travel that much, so haven’t been provided with one yet. I get petrol reimbursed, but there has never been any discussion about this kind of thing. I hardly use my car (it’s 03 reg and has done 22K miles) and I’m pretty annoyed it’s broken on a journey that was for work purposes, and as yet the company haven’t offered to contribute to the costs….

Where do I stand? If it had been a company car, I assume I wouldn’t have had to bear the cost of repairs, so why should I because it was my own?

Any advice gratefully received!

mymatebob

You should claim on your own insurance which should cover you for business use. If it doesn't then you are not insured to drive your car on business use.

lisyloo

Well firstly I don't think you have much of a case for getting the repairs paid for because it sounds like your car would have broken anyway and you would have incurred this cost. It was only chance that you happened to be driving on business when it happened.
YOU are currently responsible for repairs to YOUR car (not the business).

You say you get your pertrol reimbursed.
If this is all then this is really not on and you need to challenge it (in a positive manner of course).
My company give us 40p per mile which is for ALL car related costs. It is then up to the individual to pay for all the related costs including business insurance.
I hope you have insurance for business (commuting is NOT enough).
If not then change this ASAP if you are going to continue using it for business.

My advice is that you are not entitled to get your general car repairs paid for but you should negotiate a different deal.
Discuss with your employer and present some solutions.
You could either
a) negotiate a rate which will cover all your costs (and then you pay for everything) e.g. 40p per mile
b) they sort you out with a company car
c) You don't use your car at all and use hire cars, public transport or taxis as appropriate.

It also might be a good idea to check your contract or company handbook.
It is possible that there is an allowance e.g. 40p per mile, that you are not aware of?

lisyloo

You should claim on your own insurance

Neither car (accident) insurance nor recovery type policies pay for repairs (unless roadside and even then parts are not covered only labour).
So unless you have a warranty then it's your own responsibility to pay for repairs.

littlesnuggy

mymatebob wrote: »

You should claim on your own insurance which should cover you for business use. If it doesn't then you are not insured to drive your car on business use.

But it was a mechanical fault, not an accident, so it's not covered by my insurance. This is what the policy states:

What is not covered

We will not cover:
• loss or damage caused by wear and tear or loss of value;
• any mechanical, electrical or computer failure,
breakdown or breakage

It is insured for business use, incidentally.

lisyloo

It is insured for business use

Good.

We were just checking because many people think they can travel to meetings, courses, HQ etc. with commuting insurance when in general it's says ONE SINGLE, PERMANENT plcae of work.
It's an easy mistake to make but the consequences could be bad if there is an accident.

Godd luck in your negotiations

mymatebob

littlesnuggy wrote: »

But it was a mechanical fault, not an accident, so it's not covered by my insurance. This is what the policy states:

What is not covered

We will not cover:
• loss or damage caused by wear and tear or loss of value;
• any mechanical, electrical or computer failure,
breakdown or breakage

It is insured for business use, incidentally.

Quite right and my apologies to all for suggesting that insurance would pay for this.
Type in haste and all that.

Can't see you getting any money back from your employer at all for this. Sorry about that. Such is life. No harm in asking though.

lisyloo makes some excellent points.

Many people think that they get "petrol money" from their employers whereas it is indeed meant to cover all costs, not just fuel

Gavioli_UK

littlesnuggy wrote: »

!

My question is, as I was using my own car for business use, can I get my employer to pay for any of the repair costs? Nearly all other employees at the company who are required to travel have company cars, but I’m relatively new (6 months) and don’t travel that much, so haven’t been provided with one yet. I get petrol reimbursed, but there has never been any discussion about this kind of thing. I hardly use my car (it’s 03 reg and has done 22K miles) and I’m pretty annoyed it’s broken on a journey that was for work purposes, and as yet the company haven’t offered to contribute to the costs….

Where do I stand? If it had been a company car, I assume I wouldn’t have had to bear the cost of repairs, so why should I because it was my own?

Any advice gratefully received!

Getting petrol reimbursed by an employer can lead to a tax bill if the Customs and Excise do a tax and national insureance audit on the organisation you work for. Being paid for petrol will certainly lead to a taxable element for the petrol not used on business. On the other hand you may never be found out.

The correct way to get paid for casual use of you car is to be paid a rate per mile, with the mileage properly recorded and authorised.

There is tax guidance on this, and any rate per mile up to 40p will not be taxed or national insurance deducted. This is to cover all of the costs of running a car.

Another point is that you should be insured for business use, even if only paid for 1 mile. Your employer has an obligation to satisfy themselves that you are insured before asking you to use your own car. On the other hand you may never be caught out.

littlesnuggy

When I said my petrol was reimbursed.... I do actually get 40p per mile. Suppose I can't expect any more then.

I'm just aggravated with the stupid thing (the car!), as I've just renewed my insurance at over £350 (yes,yes went through all Martin's tips and comparison sites, this was the cheapest), I have to pay nearly £100 annually for a residents parking permit, now this - and I use the car about once a month for work and once every two months for personal use! :mad:

Pew_Pew_Pew_Lasers!

£285 to replace a spring - sorry to inform you but you've been had.

Badger_Lady

Just confirming what everyone else has said - your repair was the result of "wear and tear" on the vehicle - your employer reimbursement of 40p per mile includes a percentage towards wear and tear.

If you only use it for business miles, then your 40p over 22k mileage will have already paid for the repair. If you use the car mostly for personal travel, then a large percentage of the "wear and tear" will have happened during this.