IU’s travel policy centers around the concept of good stewardship of university funds. This means using IU funds for the right reason and for a necessary reason.
No matter how you’re traveling, you’ll likely have opportunities to upgrade or add on additional services. This article discusses upgrade options available when renting a car and whether they can be reimbursed.
Rental Vehicle Insurance
When traveling in the U.S. and Canada, do not purchase rental vehicle insurance from the rental agency. IU’s Office of Insurance, Loss Control, and Claims (INLOCC) carries liability and damage insurance for all approved drivers for business travel in both countries. If you do purchase additional insurance, you will not be reimbursed for the cost. You will be asked to remove the additional expense from your reimbursement report.
However, when traveling by car in Mexico and other international destinations, travelers are encouraged to purchase rental car insurance, and the cost can be reimbursed. INLOCC’s insurance policy does not extend to countries outside of the U.S. and Canada.
Paying to Upgrade Car Class
Car rentals are limited to the cost of economy or mid-size vehicles when renting. Renting a larger car class requires a business justification on the reimbursement report. This justification must be approved by the Fiscal Officer (FO) or their delegate. Talk to your approver before booking your upgraded rental! Without an approved business justification, you risk your reimbursement being reduced to the cost of the economy and/or midsize car class reimbursement rate.
Fuel Service Add On Option
Did you know that when renting a vehicle you can submit fuel expenses for reimbursement? This is likely a much more economical option than adding a rental agency’s Fuel Service Add On to your rental. Generally, Fuel Service Add Ons are priced at a higher rate than filling up the car at a local gas station prior to returning it, making it an uneconomical use of IU funds.
If you do decide to use the Fuel Service Add On, a business justification for the purchase must be included in the Chrome River expense report, and the FO or their delegate must approve it. If there is no business justification, or the department does not approve the extra cost, you will be asked to remove that expense cost from your overall car rental total.
These are just a few of the add on expenses you may encounter when renting a vehicle. Always talk to your FO or their delegate prior to adding extra expenses or services to ensure they are approved and you will be fully reimbursed after the trip.