Vehicle Use/Rental

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Policy Number:
UW-3019
Old Policy Number:
314
Responsible Office:
Accounting Services, Division of Business Services

University Policy

Rationale/​Purpose:

The university has a managed travel program. This policy establishes standards for the prudent use of university resources for travel while ensuring the safety of travelers and minimizing the administrative burden on travelers and support staff.

Definitions:
Business Purpose
The reason for an appropriate, reasonable, and necessary expense that supports or advances the goals, objectives, and mission of the university.
Headquarters Location
The official location where the work of an employee’s position is performed on a permanent basis; this is typically the campus or institution office. The headquarters location is determined by the needs of the University and is assigned at the time of hire or upon entering into a remote work agreement.
Commute Mileage
Mileage between the employee’s home and the employee’s assigned headquarters location.
Fleet Vehicle
A vehicle owned by the state of Wisconsin that may be used by employees for business use.
Managed Travel Program
Established policies, procedures, and best practices—universally applied to all travelers—designed to protect travelers, reduce costs, and allow for effective reporting while minimizing administrative burdens on travelers, travel arrangers, and travel approvers.
Non-employee
An individual traveling on behalf of the University who does not have a current employee appointment (e.g., contractors, volunteers, former employees, students). Generally, travel policies apply to non-employees the same as employees.
Standard Rate
Established by the federal government, the rate at which travelers are reimbursed for personal vehicle mileage. The reimbursement covers costs of using one’s personal vehicle for business, including fuel, maintenance, repairs, insurance, registration, and depreciation, but excludes personal or commuting mileage.
Supporting Documentation
Any materials required to support a specific purchase as outlined in UW-Madison policies and procedures.
Traveler
An individual (e.g., employee, student, non-employee) authorized to travel on behalf of the university for official university business.
University-Sponsored Travel
Travel that is any of the following:
  • Paid for in full or in part by the university
  • Paid directly or indirectly by the university
  • Organized by the university with participants or sponsors paying
  • Organized by others outside the university and paid for by the university
  • Sponsored by the university in the form of name, organization, communication, management, staffing, transportation, or space provision.
Scope:

This policy applies to faculty, staff, students, and non-employees traveling on or arranging university-sponsored travel.

This policy excludes:

  • NCAA-funded travel which is governed by NCAA policy.
  • Sponsored projects which are subject to the terms and conditions of the specific awards, as well as applicable program guidelines that may restrict the use of funds for certain types of expenses.
Policy:
  1. Standards for Vehicle Use and Rental
    Individuals who participate in university sponsored travel and those who make university sponsored travel arrangements must
    1. Understand and comply with university travel procurement and payment policies.
    2. Research and utilize the most cost-effective vehicle option.
    3. Secure pre-trip approval or authorization prior to incurring travel expenses.
    4. Utilize contracted suppliers and the managed travel program as required.
    5. Obtain receipts or other supporting documentation for expenses that include a clear business purpose.
  2. Driver Authorization
    1. University employees who operate a vehicle on UW-Madison business—whether utilizing a personal, rental, or fleet vehicle—must be authorized to drive by UW–Madison Risk Management.
    2. Non-authorized drivers will not be reimbursed for vehicle-related expenses.
    3. Non-employees are not required to be authorized drivers unless they are:
      1. A current UW-Madison student; or
      2. A UW-Madison volunteer.
  3. Accident Reporting
    Regardless of whether a personal, rental, or fleet vehicle is used, travelers must report any accidents or claims while on university business.
  4. Personal Vehicle Mileage Reimbursement
    1. Business mileage claims for reimbursement are subject to the following;
      1. Business-related mileage is fully reimbursable when traveling from and returning to the assigned headquarters location (e.g., local travel on a regularly scheduled workday).
      2. Business-related mileage, which starts or ends at the traveler's home on a regularly scheduled workday is fully reimbursable but cannot exceed what the mileage reimbursement would have been had the traveler started or ended at their assigned headquarters location. Travelers are reimbursed the lesser of:
        1. Mileage between an employee's personal residence and their business destination; or
        2. Mileage between an employee's assigned headquarters location and their business destination.
      3. Business-related mileage which occurs on a non-workday (e.g. weekend, legal holiday) is fully reimbursable and no reduction is made if the traveler departs from/returns to their home.
      4. Business-related mileage to an airport, train station or other transportation terminal is reimbursable as follows:
        1. Travelers may be reimbursed for one round trip and parking at a transportation terminal; or
        2. If travelers are dropped off at a transportation terminal, they may be reimbursed for two round trips to/from the transportation terminal in lieu of incurring mileage and parking costs.
        3. Cost comparisons from the employee’s headquarters location to the transportation terminal are not required.
    2. Commute mileage is non-reimbursable.
    3. Personal vehicle mileage is reimbursable at the applicable standard rate:
      Type of Vehicle Standard Rate (as of 01/01/25)
      Automobile $0.70
      Motorcycle $0.68
    4. Mileage reimbursement claims which are substantiated using the Workday Google Maps integration.
    5. Mileage reimbursement requests for roundtrips of 1,000 miles or greater must be supported by an airfare cost comparison obtained during the trip-planning process.
  5. Vehicle Rental
    1. Travelers must use either the Big Ten Alliance contract with Enterprise and National Car rental or the state of Wisconsin contract with Hertz when renting a vehicle for business use. If these vendors are not available, a non-contract vendor may be used with documented justification.
    2. Vehicle rentals are limited to standard/intermediate SUV vehicle classes and below unless a documented business need requires a larger class vehicle.
    3. Vehicle rental reservations made via Concur or the university’s contracted travel agency will automatically apply contract rates and terms.  Booking directly with a rental agency requires the travel arranger to provide the agency with a contract ID at the time of booking.
    4. The cost of gasoline for a rental vehicle is payable/reimbursable.
      1. Travelers are responsible for refueling the rental vehicle prior to returning it.
      2. The cost of vendor refueling of rental vehicles or prepay fuel packages are only payable/reimbursable with additional business justification.
      3. Receipts are required for all gasoline payments and for reimbursements requests over $50.
    5. Travelers are subject to the following insurance provisions:
      1. The university’s vehicle rental contracts include collision (CDW) and liability (LDW) insurance coverage for U.S. originating rentals. Additional insurance is not payable/reimbursable and must be declined.
      2. The Big Ten Alliance contract offers rates and some insurance coverage for international rentals, but travelers are advised that rates and coverage vary by rental location.
        1. Purchasing insurance for international vehicle rentals is advisable unless the traveler has verified in writing in advance that coverage is included.
        2. All insurance made available by the vendor is payable/reimbursable on international vehicle rentals.
      3. Vehicle rental collision (CDW) and liability (LDW) insurance must be purchased when renting from non-contract suppliers and is payable/reimbursable.
    6. Payment or reimbursement of vehicle rental requires supporting documentation (e.g., an itemized final receipt including daily rate, mileage, and any additional charges).
  6. Fleet Vehicles
    The university has a fleet of vehicles that may be reserved for business use.
  7. Parking
    1. Parking while traveling for business purposes, including within the headquarters city is payable and reimbursable.
    2. Parking at the headquarter office location is not payable or reimbursable.
    3. Short-term parking costs incurred by the driver when a traveler is being picked up or dropped off at the airport/transportation terminal are payable and reimbursable.
  8. Tolls
    All tolls incurred and transponder units are payable and reimbursable
  9. Consequences for Noncompliance
    Noncompliant purchases will not be paid or reimbursed by the university.

Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:
External References:

Policy Administration

Approval Authority:
Assistant Vice Chancellor of Business Services and Controller
Policy Manager:
Travel Manager
Contact:
Expense Reimbursement -- Program Manager, expensereimbursement@bussvc.wisc.edu
Effective Date:
10-01-2015
Revised Dates:

07-01-2020, 03-03-2022; 07-01-2022, 08-31-2022, 06-27-2023, 10-04-2023, 07-05-2024, 10-01-2024, 07-01-2025

Reviewed Dates:

07-01-2020, 07-01-2025

Retrieved:
07-28-2025 23:43:24