BPM-504 Methods of Transportation and Allowances
Revised September 20, 2016
Employees and others who incur travel expenses while conducting official University business may be reimbursed for all reasonable and necessary expenses in accordance with university policies.
The method of transportation that best meets the needs of the traveler and the University should be selected by the traveler with approval by the appropriate departmental official. Travelers are responsible for selecting the most cost-effective means of travel.
Commercial Air or Rail Travel
It is recommended that individuals traveling by commercial airline or rail use the lowest available fare.
Where use of leased or chartered aircraft is authorized, reimbursement for the full cost of the service will be made.
Individuals using a personal vehicle for official business will be reimbursed based on the approved map mileage of the most direct route, plus any costs of parking and tolls. The mileage reimbursement rate is set by the Controller’s Office by January 1 for each calendar year and posted on the Controller’s website.
REFERENCE: BPM 406 – Vehicles
In the event of an accident resulting in liability while driving a personally owned vehicle on University business, the University’s coverage is secondary to the coverage of the owner/employee. The University’s coverage will only become involved after the employee’s limits have been exhausted.
An exception will be made only in the circumstance of an employee driving a personally owned vehicle pursuant to University of Missouri Health Care’s policy for staff transport during severe winter weather, in which circumstance the University’s coverage will be primary.
The University recommends that employees using personally owned vehicles for business maintain personal automobile policies with a minimum of $300,000 combined single limit.
Physical Damage (Comp & Collision)
The University will not be responsible for damage to personally owned vehicles used in business and recommends that the employee arrange for physical damage insurance if desired.
An exception will be made only in the circumstance of an employee driving a personally owned vehicle pursuant to University of Missouri Health Care’s policy for staff transport during severe winter weather, in which circumstance the University will provide primary coverage.
PERSONALLY OWNED/RENTED AIRCRAFT (Piloted by employee)
Individuals authorized to use a personally owned or rented aircraft to be piloted by an employee for official business will be reimbursed at a rate set by the Controller’s Office by January 1 for each calendar year and will be posted on the Controller’s website. If a personal aircraft is used for official business, mileage (adding meals and lodging en route) will be reimbursed with the total not to exceed the rate of lowest available commercial air fare. No other expenses associated with use of personal aircraft will be reimbursed.
The University will not be responsible for damage to either personally owned or rented aircraft and recommends that the employee arrange for physical damage (hull coverage) insurance in all cases.
Authority to approve use of owned or rented aircraft is delegated to the dean/director level.
As a condition of authorization for use of a personally owned or rented aircraft, employees must file with the UM Office of Risk & Insurance Management a certificate of aviation insurance showing the Curators of the University of Missouri as an additional insured and with minimum limits of $2,000,000 per person, $2,000,000 per occurrence and $2,000,000 property damage.
Individuals using a University-owned vehicle will be reimbursed for all necessary operational expenses such as gas, oil, storage, parking, tolls, and repairs, not billed directly to the University.
CAR RENTAL SERVICES
Car rental services may be used when the cost is less than or equivalent to other means of transportation or when University business activities require it.
DISCOUNT RATE PROGRAMS AVAILABLE
The University has negotiated discounted corporate rate programs with major car rental companies which provide for significant savings over standard rates. These programs should be used whenever possible and practical. For a listing of rental agencies and current rates, consult Travel online at: www.umsystem.edu/ums/fa/procurement/travel-tr202
UNIVERSITY ONE CARD INSURANCE
The car rental should be charged to a University One Card which provides $50,000 of Collision Damage Waiver/Limited Damage Waiver coverage. Use of the One Card is encouraged since this shifts the initial burden of loss to the credit card company rather than the University’s self-funded program.
If the individual is unable to rent the vehicle using the University One Card, they will be reimbursed for the cost of daily rental and gas. Receipts are required for reimbursement on an Expense Report.
Reimbursement for car rental insurance will be made under limited circumstances identified below.
CAR RENTAL INSURANCE
There are three types of insurance that are typically offered by car rental companies: Personal Accident Insurance, Liability Insurance, and Collision Damage Waiver/Limited Damage Waiver. Under most circumstances, University employees and authorized guests are sufficiently covered by the University's self-funded program. Therefore, purchase of insurance from car rental companies is usually not recommended and will not be reimbursed by the University for U.S. and Canada rentals.
However, there are special circumstances which necessitate additional coverage. Employees and authorized guests should be aware of these exceptions and obtain the necessary and appropriate type of insurance which is identified below. Only in these cases, will the University reimburse employees and authorized guests for the expense of additional insurance.
Personal Accident Insurance (PAI)
Purchase of PAI is not necessary. There are no special circumstances which warrant its purchase, nor will it be reimbursed by the University.
PAI offered by car rental companies provides coverage to the renter for death or bodily injury caused by any accident occurring during the rental period. Passengers of the "insured" driver are also covered, but only for accidents occurring while occupying the rented vehicle. Employees killed or injured in an accident arising out of their employment have death and bodily injury coverage under the University's self-insured workers' compensation program.
Liability coverage should only be purchased when:
- The vehicle is to be driven outside the U.S. or Canada, or
- The driver or renter is not a U.S. or Canadian resident.
Under either of these circumstances, the renter should purchase liability coverage offered by the rental agency. Limits purchased should not exceed $1,000,000 combined single limit for bodily injury and property damage. These expenses will be reimbursed by the University.
For all other rentals, University employees and guests renting a vehicle for authorized University business purposes are covered under the University's self-insured auto/general liability program. Therefore, with the exception of those rentals listed above, the additional liability coverage offered by the rental company is not necessary and will not be reimbursed by the University.
Collision Damage Waiver/Limited Damage Waiver (CDW or LDW)
CDW/LDW coverage should only be purchased when:
- The vehicle is to be driven outside the U.S. or Canada, or
- The driver or renter is not a U.S. or Canadian resident, or
- The vehicle has a passenger capacity greater than eight (8), or
- Trucks or other similar vehicles are rented for the primary purpose of transporting any type of cargo or property, or
- Sports or utility vehicles are to be used off of maintained roads.
Under any of these circumstances, CDW/LDW coverage should be purchased (as offered by the rental agency) and the employee or authorized guest will be reimbursed by the University.
For all other rentals, CDW/LDW coverage is provided and additional coverage from car rental companies will not be reimbursed:
REFERENCE: BPM-803 Insured Coverages
REPORTING ACCIDENTS AND INJURIES
If an accident or injury occurs with a rented vehicle, the UM Risk and Insurance Management is to be notified immediately by telephone (573-882-8100), regardless of the amount of damage. For detailed information on reporting requirements see BPM-706 Accidents - Rented Vehicles.
All divisions or departments must adhere to the travel reimbursement policies contained herein and in other sections of the Business Policy Manual and may not establish lower limits, additional requirements or more restrictive policies unless required by an outside entity or third party.