Business use of personal cars: your employee drives for work, who is insured?

Without a business-use (auto-mission) insurance policy taken out by the company, an employee who has an accident in their own car during a work trip is covered for damage caused to third parties (that is the compulsory insurance on their vehicle), but bears their deductible and their no-claims penalty alone and, if their policy does not include business use, faces a reduced or refused payout. The employer, for its part, remains liable for damage caused by its employee on a work assignment and must reimburse costs incurred for the business. This is the most common coverage gap we find when auditing SMEs: everyone assumes "the car is insured", nobody has checked for which use.

What exactly is an auto-mission (business-use) policy?

An auto-mission policy is a contract taken out by the company that covers the personal vehicles of its employees, directors, interns or temporary staff whenever they drive on the employer's behalf. It steps in instead of the driver's personal insurance: third-party liability, damage to the vehicle, driver injury cover, roadside assistance, without touching the employee's no-claims bonus or deductible.

The contract is attached to the company, not to a list of number plates. That is what sets it apart from fleet insurance, which covers vehicles the company owns or leases. A standard fleet policy does not include, unless expressly extended, the sales rep's Clio or the HR manager's SUV on the way to visit a branch.

What does your employee's personal car policy actually say?

Every car policy is written for a declared use. "Private and commuting" use covers personal life and the home-to-work journey. "Business" use adds trips on the employer's behalf, at a higher premium.

If the employee has not declared that use, their insurer can invoke Article L113-9 of the French Insurance Code: in case of an unintentional omission, the payout is reduced in proportion to the premium paid versus the premium that should have been paid. If the insurer proves a deliberate misstatement, Article L113-8 provides for the policy to be void. In both cases, third-party victims are still compensated thanks to the compulsory insurance under Article L211-1 of the same code, but the insurer can then seek recovery from its policyholder, i.e. from your employee.

The deductible, meaning the share of a claim the policyholder keeps for their own account, and the malus, meaning the 25 % increase in the bonus-malus coefficient applied after an at-fault accident, are two costs the employee absorbs alone if the accident is handled under their personal policy.

What is the employer's liability when an employee drives for work?

Three legal bases stack up. Article 1242, paragraph 5, of the French Civil Code makes the employer (the "principal") liable for damage caused by its employee (the "agent") in the course of the duties for which they are employed. Article L4121-1 of the Labour Code requires the employer to protect the health and safety of its employees, which includes road risk, to be assessed in the single risk assessment document (DUERP). Finally, the Court of Cassation consistently rules that costs an employee incurs for the needs of their work and in the employer's interest must be reimbursed by the employer (Cass. soc., 25 February 1998, no. 95-44.096).

The risk is not theoretical. According to the key figures published by the French Ministry of Labour with the ONISR road safety observatory and the CNAM health insurance fund, 440 people died in 2023 during a work-related journey, 144 of them on a work assignment: it is the leading cause of death at work. An accident during an assignment is a workplace accident within the meaning of Article L411-1 of the Social Security Code, with a possible finding of inexcusable fault against the employer if an organisational failure appears.

The vehicle belongs to the employee, but the journey belongs to the company: the company reaps the benefit, so the company should carry the risk.

What happens without auto-mission cover? A worked example

An account manager at a 60-person SME hits a parked vehicle on the way to a client. Their personal policy is private-and-commuting use, fully comprehensive, €500 deductible. Third-party damage is paid under compulsory liability cover. For their own car (€3,200 of bodywork), the insurer notes the undeclared business use and applies the proportional rule: if the "business" premium would have been 25 % higher, the payout is cut by 20 %. The employee loses their deductible, part of the payout, and takes a 25 % malus. They turn to their employer, who must pay as a business expense, with no cover behind it.

How much does auto-mission insurance cost an SME?

Pricing is based on the total annual business mileage declared for all employees, not on a named list of vehicles: the base figure is already in your accounts, since it is the total of mileage allowances reimbursed.

Market ranges observed in 2026 start at a few hundred euros a year for a small volume (one provider advertises €38 a month below 1,000 km a year) and rise to a few thousand euros for a company declaring several tens of thousands of kilometres, depending on the cover chosen (liability only or all damage, deductible, driver-cover limit). For comparison, Urssaf exempts mileage allowances from social contributions up to the official scale, unchanged for 2026: €0.636 per kilometre for a 5 CV car up to 5,000 km. A team reimbursing 50,000 km a year therefore pays out close to €32,000 in allowances; the matching auto-mission premium is a few percent of that. It can be bought stand-alone or as an extension of your fleet insurance policy, which simplifies claims handling. Beyond daily use, a company car is often cheaper and protects directors' personal liability in the event of a serious accident.

Frequently asked questions

Can my employee refuse to use their personal car for work?

Yes, unless their employment contract provides for it: use of a personal vehicle is never presumed. If you ask for it occasionally, formalise it with a travel order and reimburse at the mileage scale; that is also what allows the insurer to classify the trip as an assignment.

Does auto-mission insurance cover the home-to-work commute?

No. Commuting falls under the employee's personal insurance and, for social security purposes, under the commuting accident regime of Article L411-2 of the Social Security Code. Auto-mission cover applies to trips made for the employer, including a direct journey from home to a client site or construction site.

Should the employee still declare business use to their own insurer?

It is prudent to inform them if trips are regular. Where an auto-mission policy exists, the accident is reported to the company's insurer and the personal policy is not called upon: the proportional-rule risk disappears for claims on assignment.

Are directors and interns covered?

Most auto-mission policies cover employees, corporate officers, interns and temporary staff as soon as they travel for the company. Check the definition of "insured persons" and make sure two-wheelers are not excluded.

At Lesto, auto-mission cover is the first item we check when auditing an SME's motor programme, because it is the most common coverage gap and the cheapest to close. We start from your actually reimbursed mileage, consult nine insurers on average and tell you whether a stand-alone policy or a fleet extension makes more sense. Want to know who is insured when your team hits the road? Discover our fleet insurance offer and request an analysis within 72 hours.