As an employee who drives a company car and who was in an accident, am I liable to pay for any excess due from the employers insurance company?

I had an accident a couple of years ago in a carpark where both parties were at fault due to neither of us seeing each other until the point of impact. I was made to pay a $500 excess by my employer. It is a company car that i have full use of and no one else rarely uses my company car. I was involved in an accident whilst driving to work one morning in late October last year, on the approach to a set of lights another vehicle years over into my lane and smashes into my car causing significant damage

The driver of the offending vehicle immediately fled the scene after the accident and even though I had 2 witnesses neither of them were able to verify his registration number. Again, is it legal for my employer to make me pay an excess?

Asked on January 15, 2018 under Accident Law, Alaska


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Your employer can require you to pay this on pay on termination, unless you have a written employment contract preventing your termination for this reason. Without a contract, you are an employee at will and may be terminated at any time, for any reason, including not paying the excess. The employer decides what is necessary for you to keep your job.

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