Are electronic signatures valid?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws when intent, consent, attribution, and retention requirements are satisfied.

Do Driving Agreements require notarization?

Not usually. Most Driving Agreements do not require notarization, but notarization may be useful for additional evidentiary weight or if the agreement includes powers requiring notarized acknowledgment.

Can I use remote online notarization?

Remote online notarization (RON) is available in many states with specific identity-proofing and recording rules; verify your state's RON rules before relying on remote notarization.

How do I revoke or cancel the agreement?

Terminate per the agreement's written notice procedure. Provide notice to the other party and retrieve vehicle access; retain evidence of notice and any returned keys.

What happens if insurance lapses?

An insurance lapse can lead to claim denials and owner liability. The agreement should require proof of continuous coverage and specify immediate suspension of driving privileges upon lapse.

How should I store signed copies?

Store signed PDFs with an audit trail in secure document storage for the applicable retention period. For healthcare transport, follow HIPAA retention rules and require a BAA if PHI is stored electronically.

Driving Agreement

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DRIVING AGREEMENT

This Driving Agreement (the Agreement) is entered into effective as of by and between:

Client Name: Client Address: Driver Name: Driver Address:

Recitals

WHEREAS, Client requires driving and transportation services for personnel, clients, and goods as set forth in this Agreement; and

WHEREAS, Driver represents that Driver possesses a valid driver's license, necessary credentials, and sufficient experience to provide such services and agrees to comply with all applicable laws and regulatory requirements; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the provision of driving services.

Scope of Services

Driver shall provide driving services in a professional manner consistent with industry standards. Services include pickup, transit, delivery, and related duties as set out below and in any schedules attached to this Agreement.

Detailed Scope of Work:

Payment Terms

Client shall pay Driver in accordance with the agreed compensation structure set forth below. All amounts referenced are in United States dollars unless otherwise stated.

Base Compensation (per period or per assignment): Payment Schedule (e.g., weekly, monthly, per assignment):

Payment shall be made following submission of an invoice or as otherwise set forth above. If payment is not received within days after the due date, a late fee of will accrue on the outstanding balance until paid in full.

Payment Method (select all that apply): Invoice/Bill to Client Direct deposit / ACH Expense Reimbursements:

Term and Termination

This Agreement shall commence on and shall continue until unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon prior written notice to the other party of not less than days. Either party may terminate immediately for cause upon material breach by the other party that remains uncured for thirty (30) days after written notice.

Insurance, Compliance and Background Checks

Driver shall maintain at all times in force valid automobile liability insurance and any other insurance required by law or reasonably requested by Client. Driver shall comply with all applicable federal, state and local laws, regulations, and ordinances while performing services.

Insurance Provider: Policy Number: Driver consents to background checks and disclosure of driving record upon Client request

Confidentiality

"Confidential Information" means any information disclosed by Client to Driver that is designated as confidential or that by its nature should reasonably be understood to be confidential. Driver shall not disclose, use, or permit access to Confidential Information except as required to perform services under this Agreement. Driver shall take commercially reasonable measures to protect Confidential Information and shall return or destroy Confidential Information upon termination of this Agreement.

Indemnification and Liability

Driver shall indemnify, defend and hold harmless Client, its officers, directors and employees from and against any claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of Driver's negligence, willful misconduct, or breach of this Agreement. Client's liability for any claim arising out of this Agreement shall be limited to direct damages and shall exclude consequential, incidental or punitive damages except to the extent resulting from willful misconduct or gross negligence.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to choice of law principles.

Entire Agreement; Amendment

This Agreement, together with any written schedules or exhibits signed by both parties, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous understandings, agreements or representations, whether written or oral. No amendment or modification shall be effective unless in writing and signed by both parties.

Miscellaneous

Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party, except that Client may assign to an affiliate. If any provision is held invalid or unenforceable, the remainder shall remain in full force and effect.

Client Name:

By:

Date:

Driver Name:

By:

Date:

What a Driving Agreement Is and when it's used

A Driving Agreement is a written contract that defines permissions, responsibilities, and limitations for use of a vehicle by an individual who is not the titled owner or primary lessee. Typical provisions cover authorized drivers, permitted uses and territories, insurance requirements, maintenance and fuel responsibilities, indemnity and liability allocation, duration and termination, and procedures for reporting accidents or citations. The document can be used by employers, property managers, vehicle owners, rental providers, schools, or volunteer organizations to reduce ambiguity and document risk allocation before the vehicle is used.

Why a clear Driving Agreement matters

A formal Driving Agreement clarifies insurance and liability, preserves evidence of consent and scope of use, and helps prevent disputes after accidents. When executed electronically it remains enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, provided the signature, consent, attribution, and record-retention requirements are met.

Who commonly completes Driving Agreements

Use this document whenever you need a written record of authorized use, insurance rules, and responsibilities before keys are handed over.

Employers assigning company cars, temporary pool vehicles, or mileage reimbursement arrangements for employees or contractors.
Property managers or owners providing vehicles for tenant use, moving access, or guest transport on site.
Volunteer groups, schools, and healthcare providers arranging occasional transport by non-staff drivers.

Representative signers and their roles

Fleet Manager

A fleet manager signs to authorize vehicle use on behalf of an organization. This person documents driver qualification checks, confirms insurance coverage, and records authorized mileage and vehicle assignment. The fleet manager also defines reporting procedures for incidents and enforces policy compliance.

Individual Driver

The driver signs to accept responsibility for permitted uses, to certify possession of a valid license and required endorsements, and to acknowledge insurance requirements and indemnity clauses. The driver typically consents to background checks and to provide a copy of license and insurance as attachments.

Core clauses every Driving Agreement should include

A comprehensive Driving Agreement is organized around clear, enforceable clauses. Include sections that set scope and limitations first, then operational specifics and signature blocks to reduce later disputes.

Authorized Drivers

List by name and license number who may operate the vehicle and any age or endorsement limits.

Permitted Uses

Specify business use, personal use, geographic limits, and prohibited activities such as ridesharing or hauling hazardous materials.

Insurance Requirements

State minimum coverages, primary/secondary coverage rules, and required proof such as declarations pages.

Responsibility for Costs

Allocate fuel, tolls, parking, fines, repairs, and towing responsibilities to avoid ambiguity.

Indemnity and Liability

Define who pays for third-party claims, and whether the owner or driver holds primary liability for incidents.

Term and Termination

Set effective dates, renewal or recall rights, and return conditions for the vehicle.

Essential information to collect on the form

Driver Name: Full legal name

Driver License: Number and issuing state

Insurance Carrier: Company name

Policy Number: Active policy ID

Vehicle Details: Make, model, year, VIN

Effective Date: MM/DD/YYYY

Step-by-step: completing a Driving Agreement

Follow these sequential steps to prepare, execute, and store a Driving Agreement securely.

01

Prepare document: Draft terms, list drivers, and attach vehicle and insurance details.
02

Collect IDs: Obtain license and insurance proof before signing begins.
03

Sign parties: All parties sign electronically or on paper with date stamps.
04

Store record: Save signed PDF and audit trail in secure storage.

Configuring an online workflow for this agreement

Set up a simple electronic workflow to collect signatures, verify identities, and archive the final agreement.

Field	Configuration
Signature Field	Place for driver and owner; require date and initials
Identity Check	Use email + SMS code or ID upload for stronger verification
Attachments	Require insurance declaration and license image uploads
Audit Trail	Enable IP, timestamp, and action logs

Digital signing and integration considerations

Confirm the solution can store signed copies, export standardized PDFs, and integrate with your document repository or fleet management system.

File formats: PDF and DOCX supported
Integrations: Works with CRM and cloud storage
Authentication: Email, SMS, or advanced methods

Where to send or file a completed Driving Agreement

A signed Driving Agreement should be distributed to all parties and stored centrally for claims and audits.

Driver Copy: Provide the driver a signed copy for their records
Owner Copy: Owner retains original signed agreement
Insurance File: Send to insurer as proof of authorized use
Company Records: Archive in fleet or HR system for retention

Key timelines and processing expectations

Track effective dates, renewal windows, and notification deadlines to ensure ongoing coverage and compliance.

Effective Date Entry:

Set the agreement start using MM/DD/YYYY; coverage begins that day

Driver Verification:

Complete license and insurance checks before the Effective Date

Renewal Notice:

Provide notice 15–30 days before expiration for renewals

Accident Reporting:

Require reporting within 24–72 hours depending on policy

Record Retention:

Retain signed copies for at least 3–7 years

Common mistakes to avoid when preparing this agreement

Failing to verify current insurance exposes owners to coverage gaps and claim denials by insurers.
Using vague language about permitted use creates disputes over mileage, territory, and business versus personal use.
Not collecting or storing a signed copy with an audit trail makes it harder to prove consent after an incident.
Omitting driver age or endorsement requirements can permit unqualified drivers to operate vehicles inadvertently.

Penalties and legal risks from an incomplete or incorrect agreement

Insurance Denial: Coverage dispute possible

Increased Liability: Owner may face third-party claims

Regulatory Fines: Local penalties for unlicensed operations

Contract Voidance: Terms may be unenforceable

Reputational Risk: Public incidents affect trust

Costly Litigation: Defending claims can be expensive

Real-world examples of Driving Agreement use

These brief case summaries show how organizations used a signed Driving Agreement to manage risk and streamline processes.

Tim Martin — Martin Properties

Martin Properties issued a standardized Driving Agreement for agents using company cars to show properties.

The form required proof of insurance and a driving record check.
The agreement reduced disputes after incidents by documenting authorized use, insurer responsibility, and immediate reporting, improving claim resolution and internal compliance.

John Butler — Fertility Centers of Illinois

The clinic used a Driving Agreement for patient transport volunteers to clarify PHI handling rules.

Volunteers signed a confidentiality addendum.
The combined agreement and addendum ensured HIPAA considerations were addressed, allowed safe patient transfers, and provided evidence of consent and authorized transport practices.

How a Driving Agreement differs from related vehicle documents

Compare the Driving Agreement to similar documents to pick the right form for your situation.

Criteria	Driving Agreement	Vehicle Lease	Power of Attorney
Primary Purpose	authorize use	transfer possession	grant legal authority
Typical Signers	owner + driver	owner + lessee	owner + agent
Common Attachments	insurance proof	lease terms	notarized poa
Notarization Often Needed		yes sometimes	yes often

eSignature vendor comparison for signing Driving Agreements

Basic pricing and feature differences among common eSignature vendors. signNow is listed first per vendor comparison guidelines.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about Driving Agreements and e-signing

Answers to common questions on enforceability, notarization, revocation, and electronic signing of Driving Agreements.

Need help? Contact support

Are electronic signatures valid?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA laws when intent, consent, attribution, and retention requirements are satisfied.
Do Driving Agreements require notarization?
Not usually. Most Driving Agreements do not require notarization, but notarization may be useful for additional evidentiary weight or if the agreement includes powers requiring notarized acknowledgment.
Can I use remote online notarization?
Remote online notarization (RON) is available in many states with specific identity-proofing and recording rules; verify your state's RON rules before relying on remote notarization.
How do I revoke or cancel the agreement?
Terminate per the agreement's written notice procedure. Provide notice to the other party and retrieve vehicle access; retain evidence of notice and any returned keys.
What happens if insurance lapses?
An insurance lapse can lead to claim denials and owner liability. The agreement should require proof of continuous coverage and specify immediate suspension of driving privileges upon lapse.
How should I store signed copies?
Store signed PDFs with an audit trail in secure document storage for the applicable retention period. For healthcare transport, follow HIPAA retention rules and require a BAA if PHI is stored electronically.

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