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
This section was updated to include new guidance on 5/22/24.
If you’re renting a car for an IU business purpose in the USA or Canada, there’s no need to purchase additional insurance as IU has you covered. The Office of Insurance, Loss Control & Claims (INLOCC) already covers vehicles traveling on IU business in USA and Canada, so additional insurance will not be reimbursed per Travel policy FIN-TRV-01. You must submit a Motor Vehicle Records (MVR) check with INLOCC to drive for an IU business purpose. For more information on who is covered and what to do if an accident occurs visit the Rent a Car for Business Use page.
If you’re renting a car outside of the USA/Canada, including in Mexico, we recommend you purchase additional insurance and be reimbursed after your trip ends.
Non-employees are not covered by INLOCC and can decide whether additional insurance is appropriate for them. IU will reimburse their insurance costs along with the car rental after the trip ends. Arrangers should avoid using Egencia to make reservations for non-employee travelers to avoid liability. Reservations can be made directly with the rental company, if necessary.
IU does not insure car rentals during personal time. If personal time is taken during an IU business trip, it’s important for you to determine your personal insurance needs during that portion of the trip and ensure an IU payment method is not used to cover any expenses.
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.