What is a Privately Owned Vehicle (POV)?

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Though not a commonly-used term, a Privately Owned Vehicle, which is also referred to as a POV, is a vehicle that is privately owned, borrowed, or leased by a person who uses it in order to conduct business or duties for an organization or company. The driver, in using the vehicle, will receive monetary compensation in the form of a reimbursement for gas and other other expenses incurred while operating the vehicle for designated duties. An alternative to reimbursement is a per diem.


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How is Payment Reimbursement Calculated?

The most common way in which a person who is traveling in a POV is reimbursed is through the amount of mileage that they use. In paying per mile, or a similar calculation, the driver is being reimbursed for:

  • Wear and tear (if they own the vehicle)
  • Gas
  • Insurance coverage

Mileage Rates.

While mileage rates will vary, as an example, the U.S. General Services Administration has the following rates:

  • If there’s no government-owned vehicle available or the use of a POV is authorized, the rate is $0.56 per mile.
  • If a POV is used in spite of a government-owned vehicle being available, the rate is $0.235 per mile.
  • The use of a motorcycle as a POV is $0.53 per mile.

For more information, visit: http://www.gsa.gov/portal/category/21283

Usages That Aren’t Eligible for Reimbursement.

Most companies or organizations don’t allow for compensation to be given if the Privately Owned Vehicle is used recreationally, though permission can be granted on a case-by-case basis. This can entail:

  • Visiting relatives or friends
  • Going to places of entertainment or dining
  • Using it for personal matters
  • Traveling to places that aren’t part of official business

Depending on the organization, some might even only designate certain physical areas as being eligible for compensation.

Furthermore, if a driver chooses to drive to a location that is far away for official business, instead of flying, they may be compensated less per mileage than in other situations.

In most instances, companies or organizations will prefer for a company vehicle to be used instead of a POV. The reason is because their company vehicle will have a special insurance coverage in place.

Shipping a POV.

There are some situations in which a company or organization will pay for a Privately Owned Vehicle to be shipped. The most common circumstance is that of a military officer who receives his or her Permanent Change of Station (PCS) orders.

There may be size and weight restrictions, and if a car has a long-term lease on it that is at least 12 months, there must be a written letter provided by the leasing authority.

A-1 Auto has a considerable amount of experience in working with government organizations and companies in shipping Privately Owned Vehicles at affordable rates both domestically and internationally. Contact us today at 1-800-452-2880!

Joe Webster

Written by Joe Webster

Joe Webster began his journey in the auto transport field by attending the University of Southern California (USC), where he graduated with with a Bachelor of Business Marketing.

After college, he started his career in the auto transport industry from the bottom up and has done virtually every job there is to do at A-1 Auto Transport, Inc., including but not limited to: Truck Driver, Dispatch, Sales, PR, Bookkeeping, Transport Planner, Transport Manager, International Transport Manager, Brokering, Customer Service, and Marketing. Working with his mentor Tony Taylor, Joe Webster has learned the ins and outs of this industry which is largely misunderstood.

With over 30 years experience in the industry, we've been helping people ship their vehicles, motorcycles, RV's, heavy equipment, household goods and more across the country or overseas without a hitch. Ask us anything.

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