Policy: 201.D-Travel: Vehicle Rental
Date: 02/06/04
Statement of Policy:
Reimbursement is limited to the contract, midsize rates. Both Enterprise and National have State contracts for rentals in Wisconsin. National has the State contract for out-of-state and foreign rentals. Many of the major car rental companies in the U.S. are cutting the insurance coverage they include in their standard rental agreements. Some are limiting or dropping coverage that extends to rental vehicles. This is even more reason for employees to use only contract vendors that provide full insurance coverage for all rentals in the U.S. Original receipts are required for reimbursement for purchase of gasoline regardless of the amount.
VEHICLE RENTALS, CARS, VANS AND TRUCKS
- A rental vehicle may be used in situations where it is the most cost-efficient means of transportation or when the efficient conduct of UW business precludes the use of other means of transportation. Sometimes even a rental car can be less costly than using a personal vehicle or a fleet vehicle.
- The vehicle rented should be reasonable in terms of size, cost, number of passengers and cargo to be transported. Claims for reimbursement of other than subcompact, compact or midsize models for reasons such as three or more passengers, bulky equipment, etc., must be documented in writing. Only individuals involved in State/UW business shall be included in the count.
- The State of Wisconsin has contracts with vehicle rental companies for discounted rates including certain insurance coverages. Employees who rent vehicles must use the State's contract vendors Unless there is documentation to support that a contract vendor could not provide the needed service, reimbursement for the cost of renting from a noncontract vendor is limited to the lowest contract rate that would have been incurred had a contract vendor been used.
- Most rentals from contract vendors include free collision and liability insurance; therefore, such coverage, if inappropriately offered by the rental agent, should be declined. If it is necessary to rent from a noncontract vendor, or if the contract vendor does not provide insurance for that location, collision and liability insurance must be purchased. Employees should verify that the State/UW's contract ID number is referenced on the rental agreement to assure contract coverage. All other types of insurance are not reimbursable. Questions involving additional insurances should be directed to the UW Madison Risk Management Office.
- UW Identification cards are sometimes required in order to receive the contract rates.
- Additional charges incurred for personal use by the employe when using a rented vehicle are not reimbursable.
- The original rental agreement and receipts for gas purchases must be submitted for reimbursement.
- Our contract vendors require that rental vehicles be returned with a full tank of gas. Employes should fill the gas tank before returning rented vehicles unless the contract specifies other options that are less costly to the UW. In order to be reimbursed, other options, showing cost effectiveness must be justified on the reimbursement request.
Note: When renting vehicles within the state of Wisconsin for business purposes, employes should provide the vendor with our tax exemption certificate to avoid being charged for state, county and local taxes. Taxes on vehicle rentals may be avoided in several other states. Reference FAP Travel Regulations - Appendix I (F36) for details
Related Procedure(s):
Who should know this policy?
Deans, Directors, employees who travel and staff who prepare travel reimbursements
Related Documents:
Travel Index
UW Links
Vehicle Rental Contracts
Vendors UW Madison
Contacts:
Dean/Director’s Business Office may e-mail uwtravel@bussvc.wisc.edu with questions.
Travelers and departmental staff should contact their respective Dean/Director’s Business Office for policy or procedural questions