Mileage Reimbursement

[?inCO]

What is the name of your state? CO

am in sales and drive my personal vehicle for traveling to business appointments, airport etc... My employer is now requiring that I insure my personal vehicle for business use and name the employer as having "additional interest" for me to continue receiving reimbursement of the IRS rate for miles driven involving company business. If I do not do this they will only reimburse 50% of the IRS mileage rate. My questions are. First is this legal? What rights to my vehicle do I give my employer as naming them "additional interest"? Who is liable to pay for the additional insurance premium and loss of preferred status? What recourse do I have if I refuse?

 

[Beth3]

Your employer is free to require you to purchase (and pay for) whatever insurance they want you to have on your vehicle. As to naming them in the policy as having "additional interest" in your vehicle, ya got me on that one. Have you asked your insurance agent what that means?

 

[?inCO]

Yes, I did check with my insurance agent. "Additional Interest" gives the company liability protection and gives them the authority to require me to change my coverage if they do not feel the limits are high enough. I am just not sure about having to pay to work for a company. Possible benefit though is that if vehicle is insured for business use then it becomes a depreciable tax deduction.