Technical Update vol. 29 no. 15 - Personal Vehicle Use for County Business

County employees often use their personal vehicles while conducting county business. Understanding how insurance coverage applies in these situations is essential for employees and county officials to manage risk effectively.

CAPP AND PERSONAL VEHICLES

The Colorado Counties Casualty and Property Pool (CAPP) provides liability and property damage coverage for county-owned or leased vehicles. However, CAPP does not insure privately owned vehicles. This means that employees using their personal vehicles for county business must rely on their personal auto insurance as the primary coverage.

MILEAGE REIMBURSEMENT AND INSURANCE COVERAGE

When employees use their personal vehicles for county business, they are typically reimbursed at the federal mileage rate, which accounts for fuel, maintenance, and insurance expenses. Counties should ensure employees understand that this reimbursement does not provide additional insurance coverage beyond their existing personal auto policy.

When an employee drives their personal vehicle while in the scope and course of their duties for the county, the following insurance rules apply:

• Primary Coverage: The employee’s auto insurance is the primary source of liability and property damage coverage.
• Supplemental Coverage: Liability coverage through CAPP may be available after the limits of the employee’s personal auto insurance have been exhausted.
• Workers’ Compensation: Employees injured while using their personal vehicle for county business are covered under the county’s workers’ compensation policy, just as if driving a county-owned vehicle.
• Colorado Governmental Immunity Act: Recent case law suggests that this act may provide certain liability protections for employees using personal vehicles within the course and scope of their county duties.
• At-Fault Coverage: In an accident, the at-fault driver’s insurance covers damages and injuries. Non-county employees involved in an accident should seek medical treatment through their personal health insurance, while county employees should use the county’s designated workers’ compensation medical provider.

RISK MANAGEMENT BEST PRACTICES

To mitigate risk, counties should establish clear guidelines for employees using personal vehicles for county business, including:

Employee Notification Form – Employees should be required to sign an Employee Notification Form Regarding the Use of Personal Vehicles and Property for County Purposes. This document, which is found on page 68 of the CWCP & CAPP Operations Manual, ensures employees acknowledge that their auto insurance is the primary coverage and that the county does not cover personal property.

Review of Personal Insurance – Employees should verify that their auto insurance policy includes adequate liability coverage before using their personal vehicles for work-related travel.

Incident Reporting Protocol – Employees should be instructed on how to report an accident while using their personal vehicles for county business, including notifying their insurance provider and the county’s risk management team.

Use of County Vehicles When Available – Employees should be encouraged to use county-owned vehicles instead of personal vehicles to simplify insurance coverage and reduce liability risks.

WHAT THIS MEANS FOR COUNTIES 

Counties should be aware that CAPP does not provide insurance for personal vehicles used for county business. While mileage reimbursement helps cover vehicle operation expenses, it does not include additional insurance coverage. In the event of an accident, an employee’s personal auto insurance serves as the primary source of coverage. Workers' compensation may apply if an employee is injured while using their personal vehicle for county duties. To mitigate potential liabilities, counties should implement strong risk management practices, such as requiring employees to sign notification forms acknowledging their insurance responsibilities and encouraging using county-owned vehicles whenever possible. For more information, contact CTSI at (303) 861-0507.