The example, revealed by CitiCapital Fleet, highlights the importance of drivers choosing personal contract purchase schemes making sure they have adequate cover for their vehicle. The drivers's car was off the road for three weeks.
The company said it feared that some cash-for-car drivers could be tempted to save money by choosing cheaper insurance products and are in danger of failing to investigate the fine print of their policy.
Managing director Colin Tourick said: 'There's a potential problem here for company car drivers who take the cash option and purchase their own car. And so if some choose to save a few pounds on something like insurance, or fail to check that their insurance covers business use, they could find themselves liable for third party costs should they be involved in an accident.'
Tourick also said fleet executives have a responsibility to their employees even if they choose to opt out of company car schemes.
'They should ensure that their drivers have proper and appropriate insurance,' he said. 'If they don't, they're being negligent. Similarly, drivers who take the cash for car option must insist on there being an insurance product attached, and insist that the allowance covers it.
'Associated running costs such as roadside assistance and insurance will come as quite a shock to many, particularly those who have got used to a hassle-free life with a company car, where someone else has dealt with these for them.'
Tourick added that poor insurance packages expose fleets and their drivers to a myriad of problems.
He added: 'As well as the legal implications of inadequate insurance, there is a big issue here of mobility; businesses cannot afford to have their drivers off the road longer than necessary. They want them mobile at all times.'
Fleets also face the risk of having their drivers' cars off the road for longer than if they were company cars under an umbrella insurance policy, Tourick warned.