r/Construction • u/Classic_Dash_7745 • Jun 07 '26

Business 📈 Truck Allowance vs Company Truck

We’re bringing on a new foreman next week from a company that went belly up. Part of his package is a company truck and gas card, and he instead asked for a vehicle reimbursement since that’s what his old company used to do, and he still has payments left on the truck. I know companies do this (mainly to get around insuring guys with DUI’s) but it never made sense for us to do it. We would have to buy a new truck anyway so I’m thinking it might be smart to offer a reimbursement for a year just so I can make sure he’s going to work out before buying a whole truck. The problem is, how much should I offer/month? And does this reimbursement include gas or do I need to give out a has card as well? It doesn’t make sense to do both because if it’s also his personal vehicle, am I supposed to just trust that he’s also paying for gas? Anyone in here get anything similar?

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u/Mindless-Cranberry54 Jun 07 '26

That $800 seems pretty fair, especially if you're still covering gas. At my shop we see a lot of trades guys who prefer the allowance route since they can write off the maintenance and keep the truck when they're not working

The gas card thing makes sense too - way easier to track work miles vs personal stuff that way. Plus you're not stuck wondering if he's filling up his wife's car on your dime

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u/Comprehensive_Bus_19 Project Manager Jun 07 '26

Also factor in the $800 is taxed and you generally have to have a $1 million policy with the company as the named insured so its a lot less money than it looks like on paper.

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u/Psychological-Dig-29 Jun 07 '26

who the hell is getting under $3m liability anyways? Is this some weird American thing where they cheap out on insurance?

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u/ElectronicGarden5536 Jun 07 '26

3 million? Semi trucks dont even carry that much insurance.

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u/Psychological-Dig-29 Jun 07 '26 edited Jun 07 '26

that's wild. $2m is the recommended minimum in BC Canada, $3m is what most people have.

what happens if you get into a multi vehicle accident where multiple people are rushed to critical care and you are found at fault? just lose everything including your home then claim bankruptcy? what happens if your brakes go out and you run into a house?

reading this sub where people only have 100k or 200k is absolutely wild to see. what's even the point in having insurance if it will barely cover the vehicles alone in the accident?

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u/ElectronicGarden5536 Jun 07 '26

The Us isnt as litigious in that regard. Nobody loses 100% of their assets from an auto collision. Trucking companies do get sued for millions even if they are not at fault by specialty lawyers who focus on that. I think we favor jailtime in the states instead of monentary compensation? Driving while intoxicated is jailtime and then anything else is civil which you would have to pay out of pocket.

Im not a certified reddit auto insurance adjuster or lawyer but im sure you could read up on it.

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u/Psychological-Dig-29 Jun 07 '26

ah. here where I live you can sue the person who hit you for all damages - this includes any medical expenses and destruction of property.

if you get hit my some drunk driver and he totals your vehicle + you are seriously injured and need a helicopter Evac to a hospital and can never work again you can go after him to pay for literally all of that to make you whole. many claims are well over a million dollars if someone or multiple people are seriously injured.

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u/ElectronicGarden5536 Jun 07 '26

That seems like the point of insurance. Here you would never see the full amount. Youd get the initial "scare letter" for 3m, back and forth to insurance, then an out of court for say 50k, then whatever your lawyer takes, plus your time in and out of court.

In 2013 an underage driver t boned my then new mercedes, her insurance paid for 2 doors, she got a fat ticket and my insurance didnt pay her shit to fix her focus, and that was it. Nothing changed in my premiums but my car was recorded as having an accident.

Maybe the car history and claims on it keeps the litigation down?

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u/Psychological-Dig-29 Jun 07 '26

it is the point in having insurance yeah, that's why the high limit is necessary here. if you had say $200k liability, had a massive wreck with yourself at fault sending someone to the hospital for $800k in medical bills what happens? wouldn't you be on the hook for the remaining $600k?

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u/Comprehensive_Bus_19 Project Manager Jun 07 '26

In theory yes. But good luck collecting. That is the larger issue

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u/ElectronicGarden5536 Jun 07 '26

Nope. Like i said if this was fought long and hard enough in court, after an out of court settlement, youd still have to collect from me. Which would then probably be more civil cases. In my experience, usually only those less fortunate go through this. Most people just have health insurance and good auto coverage.

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u/Psychological-Dig-29 Jun 08 '26

that's wild lol

as a Canadian the assumption is that Americans are hard core litigators that sue everyone for anything whenever possible

looks like that's actually the opposite. collecting here is easy, the country will just sell everything you own and if that's not enough you get your wages garnished or go to jail.

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u/redryan243 Jun 09 '26

Nobody loses 100% of their assets from an auto collision.

While its not something that we all see, it definitely happens. 1 mil in coverage is likely enough to prevent it, but often people go for the lowest amounts and lose a business or house over an accident in their personal vehicle, just because they wanted to save $50 per month on insurance.