Automobile expenses incurred, in whole or in part, to travel between your home and your business destination, excluding normal commuting mileage, will be reimbursed at the current Internal Revenue Service (IRS) mileage rate, when a personal automobile is used when traveling in the United States. Reimbursement based upon actual expenses is not allowed. Supporting documentation must include the business purpose for the travel and actual mileage. Reimbursement is allowed in accordance with IRS guidelines for nontaxable reimbursement. For additional information about mileage reimbursement (travel and non-travel) available on the Financial Services website (click here).
Use of a personal automobile for business purpose is prohibited unless the employee maintains liability insurance on their automobile which meets the minimum statutory requirement for their state of If a personal automobile is used, the individual’s personal auto insurance is primary. If the individual’s liability coverage limits are exceeded, the university’s insurance acts as excess insurance. The university’s insurance does not cover the cost to repair the employee’s vehicle; however, if the employee carries collision insurance on their vehicle, the university will reimburse the employee the amount of their collision deductible, or the cost of repair, whichever is less. If the employee does not carry collision insurance on their vehicle, or the amount of their collision deductible is zero, no contribution will be made by the university, should a loss occur. Visit the Financial Services website under Insurance and Risk Management for additional information including what to do if you are involved in an accident.
When a personal automobile is used by the employee for convenience on a work related trip, a more comprehensive review of all costs of flying versus driving should be considered. In addition to airfare, other costs to be considered are taxi or rental car from the airport, airport parking, etc. The reimbursement for the business use of a personal car should be limited to the total costs associated with flying. It is the department’s responsibility to include detailed supporting documentation in the expense report to justify that it is less expensive to use a personal car than fly.