When a company car is impounded, the situation becomes more complex than with a privately owned vehicle. The police or recovery pound will only release it to someone with the legal authority to act for the business, and only once valid insurance and proof of ownership are shown. Acting quickly and following the right process helps the company avoid extra costs or disruption to its operations.

Who can collect a company car from impound

The registered keeper listed on the V5C logbook is usually the business itself or a leasing company. That means the individual driver cannot simply turn up and claim the vehicle, even if they were using it for work. The pound will ask to see documentation linking the person collecting the car to the company, such as:

• a company ID or letter of authority signed by a director or manager;
• the V5C logbook or leasing documents naming the business as keeper;
• photo ID for the representative collecting the car;
• a valid insurance certificate covering the vehicle for release.

Without clear written permission or proof of employment, the pound will refuse release.

Insurance requirements for business vehicles

The car must be insured specifically for impound release. Most business motor or fleet policies don’t automatically include this cover, so a temporary policy may need to be arranged. The policyholder should be the company, and the certificate must name the correct vehicle registration. If the company already holds fleet insurance, the insurer can confirm whether it includes authority to release impounded vehicles. If not, a short-term impound policy can be purchased in the company’s name.

Once active, this cover may be verified through the Motor Insurance Database before the car can be released. Bringing a printed copy of the certificate helps avoid delay if the electronic update hasn’t yet gone through.

When the car is leased or financed

If the vehicle is on lease or hire, the leasing company remains the legal keeper and must authorise its release. The business using the car cannot collect it without their written consent. In most cases, the leasing company will either handle the release directly or issue an authority letter confirming that the driver or manager may collect it on their behalf. Without that written authorisation, the pound may refuse release even if all fees are paid.

Leasing firms sometimes charge an administration fee for handling the process, especially if the impound resulted from a driving offence or breach of contract.

Paying the release and storage fees

All fees must be paid before release, usually by the business rather than the individual driver. Some companies deduct these costs from the employee’s wages if their actions caused the seizure, but that depends on the employment contract or internal policy. Payment receipts should be kept for company accounting and potential insurance claims.

If the driver caused the impound

If the vehicle was seized because the driver was uninsured or using it outside policy terms, the company should review its internal procedures. Employers have a duty to ensure that vehicles provided for work are properly insured and that employees are authorised to drive them. Failure to do so can lead to regulatory penalties or invalidated fleet cover.

Collecting the car safely

Once the pound confirms release, the authorised company representative can collect the car, showing the required ID and documents. Before driving away, it’s wise to check that the vehicle is roadworthy and that tax and MOT remain valid. If repairs are needed, use recovery transport rather than risk another seizure.

Final note

When a company car is impounded, only an authorised representative with the right paperwork and insurance can collect it. Businesses should act fast, confirm who legally owns or leases the vehicle, and make sure the cover is valid for release. Keeping clear policies and ensuring staff always drive within insurance terms can prevent expensive disruptions and further complications down the line.

Check here for more useful information about impounded cars!

Please note: impound rules, collection windows and fee structures are set locally and can change at any time. Details on this site offer a broad outline only and are not guaranteed to match the requirements of any individual pound or authority.