Use of Personal Vehicles, Rental Cars and Fleet for Business Transportation

Original Issuance Date: October 5, 2015

Last Revision Date: November 12, 2024

1. Policy Purpose

The objectives of this policy are as follows:

Prescribe the mileage reimbursement rate
Prescribe requirements for using contract vehicle rental vendors
Communicate driver authorization requirements
Define responsibility for determining the most appropriate mode of transportation
Define vehicle expenses that can be paid with University funds
Define business mileage and calculation of miles for reimbursement
Define responsibilities for institutions that operate a fleet

2. Responsible UW System Officer

Vice President for Finance and Administration

3. Scope

This policy applies to all University payments for the use of personal, rental, or fleet vehicles. This policy applies to all non-employees (job interview candidates, invited speakers, consultants/contractors, etc.) traveling on University business when the University will be reimbursing mileage or rental vehicle costs.

4. Background

This policy has been issued under the authority of the Board of Regents as it relates to the governance of university travel and expense policies created under Wis. Stat. § 36.11(56). The Board of Regents delegated authority for management and operation of the travel program to the UW System President in Regent Policy Document 21-5, University Travel Policies.

5. Definitions

None listed.

6. Policy Statement

A. Overview

Use of personal vehicles for University business is allowed when the use is less costly than alternative means of transportation or when there are conveniences or safety issues that justify the additional costs, as determined by the approving authority. The approving authority must also consider other options including; rental vehicles, business car share and use of central fleet when considering cost for ground transportation.

Reimbursement of business mileage or other vehicle related costs will not be made for normal commuting from home to regularly assigned headquarters. The “Headquarter” location is where your main place of business or work is located, regardless of where you maintain your home.

Business Mileage

From Regularly Assigned Headquarters:

Reimbursement for business mileage from regularly assigned headquarters will be based on miles traveled to and from assigned headquarters if returning to headquarters.

- If going home from a temporary worksite the mileage, calculation will be total distance from headquarters to temporary worksite plus the calculation of the mileage to home or back to the headquartered location, whichever is less.

From Home or Temporary Worksite :

Business mileage will be calculated based on the distance from home or the assigned headquarters to the temporary worksite and back, whichever is less.

Non-workday travel:

If travel is required to a temporary worksite or an airport/train/other transportation terminal for travel on days not scheduled for work, mileage from home will be reimbursed.

Mileage to Airport, Train Station or other Transportation Terminal:

Travelers may be reimbursed for one round trip and parking, or if travelers are dropped off, they may be reimbursed from two round trips to/from the transportation terminal.

B. Risk Management – Driver Authorization

Employees and students who are required to drive on University sponsored business must be authorized to drive in accordance with SYS 615, Vehicle Use and Driver Authorization, and SYS 616, University of Wisconsin Student Drivers Under the State’s Liability Protection, prior to using personal vehicles, rental vehicles or fleet services. On rare occasions, individuals who are neither employees nor students may drive on University sponsored business. Institutions reserve the right to include this requirement for these drivers traveling on University sponsored business. Risk Management reserves the right to remove drivers from the authorized driver list due to excessive University claim(s) activity.

Note: In addition to receiving driver authorization, successful completion and certification of Van Training is required prior to renting 12-15 passenger vans. Certification is required to be presented when renting a 12-15 passenger van.

C. Accident and Insurance Claims Reporting

In the event of an accident it is the responsibility of the driver to immediately report the accident to the following:

Police
University Supervisor/Manager/Host
Fleet Services or Rental Vehicle Supplier
University Risk Management Contact

Note: All claims/damages (not just accidents) should be reported to your University Risk Management Contact.

D. Personal Mileage Reimbursement Rates and Application

Business mileage will be reimbursed at the IRS authorized mileage rate in effect on date of travel using the most direct route. Institutions may not pay a different mileage rate than stated in policy but may place limits on the trip or overall expense reimbursement. To be eligible for mileage reimbursement travelers must list the point to point (departing origin and destination location and distance traveled) mileage on the expense report. MapQuest or Google Maps are the official tools for determining the most direct route. Deviations from the most direct route must be explained on the expense report.

The reimbursement rate for personal vehicle mileage covers all costs related to the operation of the vehicle, including service, maintenance, insurance, depreciation, and gas. When two or more persons traveling on University business share transportation in a personal vehicle, only the driver may claim reimbursement for mileage.

Business miles will also be reimbursed for the following scenarios:

Miles traveled to pick up additional passengers when traveling together on business;
Mileage to and from airport, train station, etc. when traveling on business.
- Two round trips will be permitted if the traveler is being dropped off and picked up rather than incurring parking costs. Airport choice for ticket price comparisons must consider mileage costs as additional costs when not selecting the closest airport.

One-way mileage associated with employee relocation (see SYS 240, Relocation (Household Moves) and Temporary or Indefinite Work Assignments regarding relocation and temporary or indefinite work assignments).

E. Fleet Vehicles

Not all University institutions maintain a fleet of vehicles for traveler use. As such, requirements for mandatory use of fleet vehicles will be determined by the institution’s Appointing Authority or designee. Institutions that operate a fleet will be responsible for determining the method for verifying availability of fleet vehicles for the purposes of assigning the appropriate reimbursement rate. Institutions will determine the “breakeven” mileage threshold for requiring fleet use and any documentation requirement for reimbursement. When fleet vehicles are not available, the standard rate for the mode of transportation will be paid to the traveler for business mileage incurred.

F. Reimbursement Rates

Individuals are reimbursed for use of personal vehicles (including motorcycles) in accordance with the reimbursement rates published by the Office for Finance and Administration.

G. Use of Vehicles in lieu of Air Travel

A traveler may request mileage or rental vehicle reimbursement or payment of a fleet vehicle for personal reasons when air travel would be the most appropriate means of transportation given time and distance. The approving authority can approve the request if the costs do not exceed the cost of coach/economy airfare, taking into consideration the extra time to drive versus fly. Mileage to and from the destination will be based on the most direct route. See Determining Mode of Transportation for required comparison documentation.

H. Rental Vehicles and Contract Use Requirements

When it is determined that a rental vehicle is the most cost-effective means of transportation, use of the contracted rental vehicle suppliers is required.

The University participates in the Big Ten Alliance contract with Enterprise and National Car Rental and the State of Wisconsin (WSCA/NASPO) contract with Hertz. Eligible business renters must be authorized by the University. Please see SYS 615, Vehicle Use and Driver Authorization and SYS 616, University of Wisconsin Student Drivers Under the State’s Liability Protection for more information. Student employees acting within the scope of employment, are eligible to use these contracts.

Renters may use either contract and are responsible for ensuring the appropriate contract rate and insurance is applied. Renters also must follow the terms of the contract. Note: Any costs resulting from claims and damages will be charged to the renter’s department or division.

Renters may add additional authorized drivers to the rental agreement for business travel providing they are eligible to drive for University business and meet the other requirements of this policy. The addition of any authorized driver(s) must be done at the rental outlet upon vehicle pickup.

Employees are encouraged to rent compact/standard/intermediate vehicle classes. Claims for reimbursement beyond standard/intermediate SUV vehicle classes (i.e. trucks, full size SUVs, etc.) for reasons such as transporting extra passengers, carrying cargo or bulky equipment, etc., must be explained in the expense report.

Vehicle rental reimbursement is limited to the amount directly related to University business. If the traveler opts for a weekly rate because the total cost is less than if rented at the daily rate for the number of business days, the weekly rate amount will be reimbursed. If the traveler extends the rental for personal reasons, the weekly rate will be pro-rated and only the amount directly related to University business will be reimbursed.

Student Organization and Student Club Use:

Hertz: Authorized Student Drivers may use the Business Use WSCA/NASPO contract.
Enterprise and National: Authorized Student Drivers are required to use the Student Club/Student Org Contract and are not eligible to use the Big Ten Alliance Contract. A $15 per day surcharge is applied for drivers 18-21 years old.

I. Insurance Provisions

I. Domestic Vehicle Rentals

For rentals within the U.S., the Big Ten Alliance contracts (Enterprise and National) include collision (CDW), loss damage waiver (LDW), and liability protection insurance coverage, excluding Student Club and Student Organization rentals. Travelers and those that arrange travel for others must review the rental vehicle contracts for rates, surcharges and included coverages prior to renting a vehicle. Employees must verify that the Big Ten contract ID number is referenced on the rental agreement to assure contract coverage, appropriate terms and rates. Other or extra types of insurances are not reimbursable and must be declined. The Hertz contract with the State of Wisconsin also includes the necessary CDW, LDW, and liability insurance for domestic rentals.

Vehicle rental CDW, LDW, and liability insurance must be purchased when renting from non-contract suppliers.

Drivers are expected to inspect vehicles prior to leaving the rental agency and note with the rental agency any scratches, dents and other damage. Drivers are expected to do the same upon returning. Taking pictures and/or videos and retaining them for up to four months after the trip is considered best practice.

II. Foreign Vehicle Rentals

For rentals outside of the US, the Big Ten agreement may offer some insurance coverage, but travelers are advised that rates and coverages vary by rental location. Purchasing insurance is advisable unless the traveler has verified in writing in advance that coverage is included.

- Non U.S. originating rentals from contract suppliers may also require the purchase of CDW, LDW, and liability insurance.
- When renting from non-contract suppliers, vehicle rental CDW, LDW, and liability insurances must be purchased.
- Review the vehicle rental contracts to determine when standard CDW, LDW, and liability insurances are provided for the non-U.S. locations. Required CDW, LDW, and liability insurance coverages must be purchased at vehicle pickup and cannot be included during the reservation process. Travelers will be reimbursed for the cost of standard CDW, LDW, and liability insurance under these circumstances.

Drivers are expected to inspect vehicles prior to leaving the rental agency and note with the rental agency any scratches, dents and other damages. Drivers are expected to do the same upon returning. Taking pictures and/or videos and retaining them for up to four months after the trip is considered best practice.

J. Rental Vehicle Reservation Options

Utilizing Concur for reservations or booking with our contracted travel agencies is preferred as it enables the contract booking ID to be automatically applied ensuring that all reservations are under contract and appropriately insured.

Employees and students must be prepared to provide UW identification and the University’s tax exempt wallet card to receive contracted rates and tax exemption on qualifying rentals (i.e. rentals originating in Wisconsin or participating States).

K. Driver Refueling

Drivers should return vehicles with the same level of fuel that they received at time of rental. The University may reimburse on a rare occasion vendor refueling and/ or prepay fuel packages with a reasonable explanation. Receipts for gas are required to support reimbursement claims.

L. Payment

Payment for the rental is due upon return of the vehicle and must be paid with a charge card in the driver’s name.

M. Reimbursement & Receipt Requirements

For mileage reimbursement, record required details: date, business purpose of trip, “point to point” locations and mileage incurred. A tolerance above “point to point” map mileage may be used to cover detours, incidental miles between lodging and event location, etc.

Rental vehicles require the rental agreement and receipt as provided upon vehicle return and any additional receipts for gas.

Use of fleet must be indicated on the expense report if fleet or a department assigned vehicle was used.

N. Related Reimbursable Expenses

The following vehicle-related expenses are reimbursable:

Toll costs incurred while traveling for business. Advance deposits placed on an individual’s toll pass account are not reimbursable, only the pass dollars used to cover the business tolls for the trip and any toll transponder device deposit and/or fee(s) will be reimbursed.
Parking while traveling for business purposes, including headquarter city.
Short term parking costs incurred by driver when traveler is being picked up/dropped off at airport terminal, etc.

See SYS 430, Travel & Expense – Purchase & Payment Miscellaneous Travel Expenses, for more information and receipt requirements.

O. Non-Reimbursable Expenses

The following is a non-inclusive list of vehicle related expenses that will not be paid or reimbursed by University funding sources:

Personal Vehicles	Rental Vehicles
Gas Depreciation Personal vehicle insurance Maintenance and repair costs Traffic citations, parking tickets and other traffic violations Roadside services/towing GPS Satellite radio Any excessive mileage over the tolerance not supported by justification Parking at headquarter office location Personal toll pass deposits Damaged or lost personal property	CDW, LDW and liability insurance from contract suppliers for U.S. originating rentals unless renting under the Student Club and Student Organization contract or a special “insurance not included” rate Domestic insurances beyond CDW, LDW and liability insurance. (Foreign insurance should always be purchased.) Traffic citations, parking tickets and other traffic violations Satellite radio Rental days/hours not supported by business purpose Damaged or lost personal property

Personal Vehicles

Rental Vehicles

Gas
Depreciation
Personal vehicle insurance
Maintenance and repair costs
Traffic citations, parking tickets and other traffic violations
Roadside services/towing
GPS
Satellite radio
Any excessive mileage over the tolerance not supported by justification
Parking at headquarter office location
Personal toll pass deposits
Damaged or lost personal property

CDW, LDW and liability insurance from contract suppliers for U.S. originating rentals unless renting under the Student Club and Student Organization contract or a special “insurance not included” rate
Domestic insurances beyond CDW, LDW and liability insurance. (Foreign insurance should always be purchased.)
Traffic citations, parking tickets and other traffic violations
Satellite radio
Rental days/hours not supported by business purpose
Damaged or lost personal property

P. Procedural Standards

Procedures and Operational Standards for vehicle options are integral to the application of this policy. Review procedural requirements for vehicle rentals contracts prior to renting.