FEARS that drivers taking up cash-for-car schemes may not be adequately covered to use their vehicles for business journeys are being tackled by insurance firm Groupama Insurance.

It has launched a cash-for-car service to insure private drivers in a company as a single fleet, to ensure they are covered when taking their vehicles out on business.

Fears have been raised that drivers in cash-for-car schemes who have to source their own insurance, may be conducting business journeys despite their insurance only covering them for private.

Roger Nash, casualty and fleet manager for Groupama Commercial, said: 'Using the service, the employer can retain control over vehicles being used for business and be safe in the knowledge that staff are adequately covered.'

The firm has also issued a guidance sheet offering answers to queries regarding cover of PCP drivers.