A consultant that offers vehicle reimbursement plans is touting the option as a way for corporations to reduce the risk associated with accidents, but the company's advice doesn't address several pitfalls of the strategy.

Approximately 40% of motor vehicle accidents are work-related and the remaining 60% occur on personal time, according to a recent report based on U.S. Bureau of Labor Statistics.

CarData offers tailored car allowance solutions, and claims their product reduces the liability of an accident because if an employee driving a company car who gets into an accident on personal time, the employer would responsible for damages. Under the same scenario, an employee driving their own car would have their insurance come into play, which could reduce exposure to the company.

However, the firm doesn't mention that companies are still responsible for the liability exceeding the employee's insurance coverage. The report also doesn't address whether an employee postpones repairs, and whether the accident was caused by deferred maintenance.

If the company reimburses drivers, it would have to ensure the employee maintains a high enough insurance level. If an accident occurs, the employer may also be brought into a lawsuit.

CarData offers a variety of reimbursement services, including insurance policy reviews, expanded license checks, and advice that employees get business use coverage, which can significantly increase their premium.

CarData also warns about company cars being driven by family members, who could add risk to the company if they become involved in an accident. However, a well-crafted fleet policy could include a prohibition against anyone other than the employee driving the vehicle.

Related: 30 Reasons to Avoid Driver Reimbursement