Company Car Speeding Offences: Who Pays the Fine and Takes the Points?
Driving a company car comes with responsibilities that many employees don’t fully understand until they receive a speeding ticket. The question of who pays the fine and who gets the penalty points can cause significant confusion and workplace disputes. This comprehensive guide explains everything drivers and employers need to know about company vehicle speeding offences.
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Company Car Speeding Offences: Who Pays the Fine and Takes the Points?
Driving a company car comes with responsibilities that many employees don’t fully understand until they receive a speeding ticket. The question of who pays the fine and who gets the penalty points can cause significant confusion and workplace disputes. This comprehensive guide explains everything drivers and employers need to know about company vehicle speeding offences.
The Legal Framework: Section 172 Requirements
When a company vehicle is caught speeding by a camera, the registered keeper (typically the company) receives a Notice of Intended Prosecution (NIP) and a Section 172 notice. This creates immediate legal obligations:
- The company must identify the driver within 28 days
- Failing to provide driver details is a separate offence carrying a £1,000 fine and potential court action
- The company cannot simply pay the fine to “make it go away” – the driver must be identified
Under UK law, specifically the Road Traffic Act 1988, there’s no legal way for a company to “absorb” the penalty points. They must always go to the actual driver.
Who Receives the Penalty Points?
The law is very clear on this point:
- Penalty points always go to the driver, not the company or vehicle
- Points are added to the driver’s personal licence
- These points remain on the licence for 4 years and are visible to insurance companies
- Points received in a company car count toward the same 12-point “totting up” threshold that could lead to disqualification
This means that even if your employer pays the fine, you’ll still receive the penalty points on your personal driving licence.
Who Pays the Fine? Company Policies Vary
While penalty points must go to the driver, the question of who pays the monetary fine varies according to company policy:
Common Company Approaches
- Driver pays everything: Some companies require employees to pay both the fine and any administration fees. This is increasingly common.
- Company pays the fine, driver takes the points: Some organisations, particularly those requiring extensive driving, may pay the fine but the driver still receives the points.
- Case-by-case assessment: Some employers evaluate each incident individually, considering factors such as whether the journey was business-critical, the driver’s previous record and the severity of the speeding offence
According to a recent survey of UK fleet managers, approximately 64% now require drivers to pay their own speeding fines, up from 47% in 2020.
Calculating the True Cost of Company Car Speeding
The financial impact of a company car speeding offence extends far beyond the immediate fine. Use our speeding fine calculator to understand the full implications, which often include:
Direct Costs:
- The speeding fine itself (based on your weekly income)
- Administration fees charged by the fleet management company (typically £25-£50)
- Potential loss of company car privileges
- Possible speed awareness course fees (if offered and accepted)
Indirect Costs:
- Personal insurance premium increases when you next insure your own vehicle
- Potential impact on career advancement in driving-related roles
- Risk to your job if driving is an essential function and you face disqualification
Company Car Drivers and Speed Awareness Courses
When offered, speed awareness courses provide a valuable alternative to penalty points. For company car drivers, these courses raise several considerations:
- You’ll need to inform your employer about the course
- Company policies differ on whether time off for the course comes from personal or work time
- Some employers reimburse course fees, while others require the driver to pay
- Completing the course means no penalty points are added to your licence
From an employer’s perspective, supporting drivers to take speed awareness courses can be beneficial, as it helps employees avoid points that might eventually lead to disqualification and business disruption.
Fleet Management Systems and Speeding Prevention
Many companies now use telematics and GPS fleet management systems that monitor driving behaviour, including speed. These systems:
- Record instances of speeding, even if not caught by cameras
- Generate reports that managers can review
- May trigger internal disciplinary procedures
- Can help identify drivers who need additional training
Some companies have implemented “three strikes” policies where repeated speeding identified through telematics can lead to loss of driving privileges or other disciplinary action.
Special Considerations for Different Business Vehicles
The implications of speeding offences vary depending on the type of company vehicle:
Pool Cars
- The company must maintain records of who was driving at any given time
- Without proper records, the company may face difficulties identifying the driver
- Some companies require drivers to sign pool cars in and out to maintain clear accountability
Commercial Vehicles (Vans, Lorries, Etc.)
- Professional drivers often face stricter company policies
- Vocational driving licences (like HGV) can be more severely impacted by points
- Different speed limits apply to commercial vehicles, increasing the risk of accidental speeding
Grey Fleet (Personal Vehicles Used for Business)
- If caught speeding while on company business in your own car, company policies may still apply
- Some employers require declaration of any driving offences, even those received in personal vehicles
Fixed Penalty Notice vs. Court Summons
For company car drivers, the distinction between receiving a Fixed Penalty Notice (FPN) and a court summons is particularly important:
Fixed Penalty Notice
- Typically issued for minor speeding offences
- Usually results in a £100 fine and 3 penalty points
- Generally doesn’t require time off work for court appearances
Court Summons
- Issued for more serious speeding offences
- May result in higher fines (up to 175% of weekly income)
- Could require time off work to attend court
- Potentially more damaging for professional drivers
Employers vary in their level of support for drivers who must attend court. Some provide legal assistance, while others consider it entirely the driver’s responsibility.
Recent Case Examples
Case Study 1: Administrative Error
A sales representative received a speeding ticket while driving a company pool car. The company initially couldn’t identify who was driving and faced a fine for failing to provide driver information. After checking booking records, the driver was identified and accepted the points and fine.
Outcome: The company implemented a more rigorous pool car booking system with driver verification.
Case Study 2: Excessive Speeding
A delivery driver was caught driving 56 mph in a 30 mph zone in a company van. The company had a clear policy that drivers pay their own fines for serious speeding offences.
Outcome: The driver received 6 penalty points and faced a Band B fine calculated at 100% of weekly income. The company also placed the driver on a performance improvement plan.
Case Study 3: Disputed Responsibility
A manager was caught speeding while using a hire car on company business. A dispute arose about whether company policy applied to temporary hire vehicles.
Outcome: The company updated its policy to explicitly include all vehicles used on company business, regardless of ownership or rental status.
Employer and Employee Responsibilities
Employer Responsibilities:
- Respond promptly to Section 172 notices and identify the driver
- Maintain accurate records of who drives company vehicles
- Establish clear policies regarding speeding offences
- Ensure these policies are communicated to all drivers
- Consider implementing driver training programs
Employee Responsibilities:
- Adhere to speed limits while driving company vehicles
- Promptly inform employers if you receive a speeding fine
- Understand the company policy regarding traffic offences
- Maintain an awareness of different speed limits for commercial vehicles
- Calculate potential fines using appropriate tools like our speeding fine calculator
Legal Consequences of Failure to Identify Drivers
Companies that fail to identify drivers caught speeding face serious consequences:
- Fixed penalty of £1,000 for failing to provide driver information
- Possible court action and higher fines
- Reputational damage and increased insurance premiums
- Risk of regulatory scrutiny for companies in transport-related industries
For larger organisations with many vehicles, having robust systems to track who is driving which vehicle at what time is essential to avoid these penalties.
Insurance Implications for Drivers and Companies
Speeding offences affect insurance for both the driver and the company:
For Drivers:
- Points from company car offences will affect your personal car insurance
- You must declare these points when renewing any car insurance policy
- Premiums may increase by 20-30% for a single speeding offence
- Multiple offences can make insurance prohibitively expensive
For Companies:
- Fleet insurance premiums can increase based on driver behaviour
- Some insurers now require companies to implement speed monitoring
- Excessive claims and offences can lead to policy cancellation
- High-risk drivers may need to be excluded from fleet insurance
Best Practices for Companies and Drivers
For Companies:
- Develop a clear written policy on traffic offences in company vehicles
- Communicate this policy during employee onboarding and regularly thereafter
- Implement driver training programs focusing on speed awareness
- Consider telematics systems to monitor and improve driving behaviour
- Maintain comprehensive records of who drives each vehicle
For Drivers:
- Familiarize yourself with your employer’s policy on traffic offences
- Be aware of speed limits, particularly for commercial vehicles
- Allow extra time for journeys to reduce the temptation to speed
- Consider using cruise control on motorways to maintain legal speeds
- If offered a speed awareness course, take it to avoid penalty points
Conclusion
While company cars come with many benefits, they also bring significant responsibilities. Speeding offences in company vehicles always affect the driver’s personal licence, regardless of who pays the fine. Both employers and employees should understand their respective obligations and the potential consequences of speeding.
With speeding fines now calculated based on weekly income, the financial impact can be substantial.
Clear policies, good communication, and proper driver training can help prevent these issues before they arise, benefiting both businesses and the individuals who drive for them.
