Data Report: Vehicle Reimbursements for Field Service

Executive Summary

This report presents the latest data on vehicle reimbursements for Field Service Technicians and Engineers, combining real-world mileage, reimbursement rates, and program design insights. It draws on recent, real-world reimbursement data on mileage, vehicle costs, and regional concentrations. For this study, we surveyed thousands of field service employees across 62 companies. 

The field service profession sees considerable driving for on-site installation, repair, maintenance, and technical support. Organizations use a range of Vehicle Reimbursement Programs (VRPs) such as FAVR (Fixed and Variable Rate) and Tax-Free Car Allowance (TFCA) to compensate employees accurately, while fleet solutions may be necessary for specialized vehicles.

Key points from the data:

• Companies Surveyed: 62
• Monthly Trips: 65.17 (average)
• Monthly Mileage: 1,106.36 (average)
• Monthly CPM (cents per mile): $0.23
• Monthly Fixed Rate: $458.77
• Average Monthly Reimbursement: $709.06
• Program Distribution:
  • 84% drivers in FAVR
  • 11% in TFCA
  • 5% in Canada
• Mileage Entry Preferences: 82% track automatically, 17% use manual logs, and 1% are daily commuter entries
• Geographic Reach: Drivers span numerous U.S. states, with the highest concentrations in select regions (e.g., Texas, California, etc.), and Canada

These findings demonstrate wide-ranging driving needs for field service and underscore how reimbursement structures must be tailored to local conditions and job requirements.

Introduction

Field service technicians and engineers perform on-site tasks that demand considerable travel, making vehicle reimbursements central to cost management and employee satisfaction. This report examines key metrics—mileage, trips per month, reimbursement costs, and program design—to guide finance, HR, and operations professionals in crafting effective VRPs. It also draws comparative insights from other recent Cardata industry reports:

• Food & Beverage: Food and Beverage Industry Report
• Chemicals: Chemical Industry Reimbursement Analysis
• Construction: Construction Industry Reimbursement Report

Field Service Profession Snapshot

Nature of Field Service Work

Field service technicians and engineers install, maintain, repair, and troubleshoot equipment at client sites. They perform technical installation and repair work in industries like HVAC, medical devices, industrial machinery, IT systems, and more. They perform preventive and maintenance tasks, diagnostic evaluations, compliance checks. Moreover, they set up new products, and integrate and calibrate systems.

The nature of field service work implies a high propensity for driving. It is no surprise, then, that field service technicians drive an average of 65.17 trips per month, a moderately high trip count. There is also a wide geographic spread, with technicians often covering multiple territories, from dense urban areas to rural sites.

Field service technicians have two kinds of vehicle needs: specialized and nonspecialized vehicles. Specialty vehicles are custom vehicles that have a specific purpose: for example, an electrical technician who needs to repair something in a cherry picker will not be able to get the job done in a sedan. However, for most field service tasks, passenger vehicles—cars and light trucks—are plenty for the job. 

Specialty vs. Non-specialty Vehicles | Cardata 

This implies the possibility of a blended mobility approach, leveraging fleet and vehicle reimbursement for field team enablement.

Vehicle Needs: Personal vehicles for general field visits or more specialized vans/trucks if bulky tools and parts are necessary.

Core Data Findings

The following are the data findings from the field service profession analysis. 

Note: These figures highlight moderately high travel demands for field service technicians/engineers. The “trips per day” value is an approximate average that can vary significantly based on specific scheduling and customer needs.

Note: The total monthly reimbursement includes both the fixed component (covering insurance, depreciation, etc.) and a per-mile rate for fuel, maintenance, and similar variable expenses.

The high adoption of FAVR (84%) indicates a strong preference for splitting costs into fixed and variable components, likely reflecting the diverse mileage demands of field service. The 11% who use TFCA shows that some teams still value simpler administration despite reduced precision. Lastly, 5% in the Canada Program highlights the cross-border presence of field service staff and a need for region-specific compliance.

The vast majority of drivers (82%) prefer automated tracking, underscoring a shift toward technology-driven mileage capture for accuracy and convenience. Meanwhile, 17% still rely on manual input, perhaps due to an aversion to GPS mileage tracking.

Industry Comparisons: F&B, Chemicals, Construction

Below are three comparison tables highlighting Monthly Mileage, Monthly Trips, and Average Monthly Reimbursement across four categories—Field Service, Food & Beverage, Chemicals, and Construction. Note that field service is a profession and not an industry, so field service data intersects with industry data. Indeed, some of the field service technicians surveyed for this present study work in F&B, chem, and construction.

Note:

Food & Beverage and Chemicals both exceed 1,400 miles/month on average, often driven by large territories or specialized deliveries.

Field Service sits in the mid-range (~1,100 miles), reflecting a balance between frequent but geographically moderate service calls.

Construction shows the widest variability, from ~600 to ~700 miles, depending on role segmentation (short local visits vs. longer site trips).

Food & Beverage stands out with the highest number of monthly trips, likely due to merchandise restocking and rapid-stop deliveries.

Field Service comes next at ~65 trips, indicating steady, ongoing service calls that demand mobility but also allow time for on-site repairs.

Chemicals ranks lowest in trip count at 53, but each trip typically covers longer distances—mirroring their higher mileage profile.

Construction hovers in the 62–67 range, reflecting projects of differing lengths and complexity.

Chemicals exhibits the highest reimbursement ($926.24), consistent with the longer distances and specialized nature of visits (e.g., regulatory or safety requirements).

Field Service at $709.06 lands in a middle tier, consistent with moderate monthly mileage and trip frequency.

Food & Beverage is slightly lower ($647.84), although some roles can be high-mileage if they involve frequent deliveries.

Construction presents a range ($621.93–$696.59), underscoring how different roles (short-run local sites vs. longer-travel inspection crews) significantly affect overall reimbursement.

Like in food & beverage, field service roles sometimes require specialized vehicles (e.g., a van with extra cargo space), but if heavy or refrigerated equipment is unnecessary, personal vehicles plus VRPs can significantly cut overhead. Meanwhile, the chemicals sector’s high mileage needs mirror the field service scenario for geographically dispersed service routes.

Fleet vs. Reimbursement for Field Service

When Fleets Are Essential

If technicians must leverage specialty vehicle-based gear, an upfitted company van or truck may be non-negotiable.

Some companies prefer branded, safety-equipped fleet vehicles if they’re operating in regulated industries.

When VRPs Are Advantageous

Technicians using personal vehicles to travel for general service calls, between short-distance appointments, can use their personal vehicles and be reimbursed.

Avoiding the administrative overhead of fleet maintenance, depreciation, and insurance, is a best practice for companies seeking cost efficiency.

Letting employees select and drive personal vehicles for work can be seen as a boon: employees like having their company offset the cost of owning a car they want to drive. Personal vehicles can be chosen by employees to suit personal and family needs, while at the same time reducing total corporate outlay. Companies generally pay for 71.4% of a vehicle’s total expenses.

Program Design Considerations

Selecting a program for your mobile team is a fine art. You can choose between FAVR, TFCA, and CPM. Here is a breakdown of the programs you can choose from:

FAVR (Fixed and Variable Rate)

FAVR is renowned for its accuracy. Regional cost adjustments for fuel and insurance, plus a monthly fixed portion for depreciation and other ownership costs, are available through FAVR.

There are stricter compliance requirements with FAVR. Companies must maintain five or more drivers on the plan, each driving at least 5,000 business miles/year. There are other tax compliance measures too, learn more here: FAVR Taxes Explained: A guide for program admins | Cardata.  

The benefit is considerable. FAVR is tax-free if structured correctly (i.e. meeting IRS guidelines), even over the IRS rate. FAVR is the only program that can exceed the IRS standard mileage rate, tax-free.

TFCA (Tax-Free Car Allowance)

TFCA allows you to pay a fixed monthly allowance to cover ownership costs without the compliance measures of FAVR. 

Its simplicity is appealing. There is easier administration than FAVR; it stays tax-free if under the IRS rate (70¢/mile for 2025) and documented properly. You just have to test your total allowance against the IRS rate to determine taxability, and only the delta is taxable.

Cents per Mile (CPM)

CPM is straightforward: it pays a flat rate per mile. However, without a fixed component, it may not reimburse full ownership costs or might overpay in high-mileage scenarios.

Technology & Administration

All of these programs are best administered with vehicle reimbursement technology. 

• Mileage Tracking Apps: Over 80% of drivers in this dataset use automated tracking, significantly reducing manual errors.
• Cloud Dashboards: Program admins can review trip logs, reimbursements, and ensure compliance quickly.
• Safety & Compliance: MVR checks, insurance verifications, and driver education are crucial—especially in industries like medical device or chemical, where on-site safety is paramount.

Cost and Trip Analysis

Field service drivers average $709.06 in monthly reimbursements, combining a $458.77 fixed rate and $0.23 CPM. This balance suggests:

1. Moderate Distances: 1,106 miles/month is substantial but less than the total driver pool (including sales reps, territory managers) in F&B or chemicals, where frequent or long distance deliveries drive up mileage.
2. Relatively Frequent Trips: 65.17 monthly trips place field service between construction (62–67) and F&B (89.5).
3. Efficient VRP Structures: The data implies that mixing a monthly allowance with a moderate per-mile rate helps account for both ownership and operating expenses.

Recommendations and Best Practices

The key to determining your mobility needs for field service technicians is to do an audit of your mobility needs, and to consider all your program and technology options. Steps could include:

Audit Role Requirements: Identify which field service roles truly need specialized fleet vehicles. Many may suit personal vehicles (reimbursed with FAVR/TFCA), saving up to 30% in overhead (similar to the F&B industry estimate).

Adopt Automated Mileage Tracking: Over four-fifths of these field service drivers rely on tracking apps, minimizing manual errors and ensuring IRS-compliant records.

Choose a VRP Wisely: 

1. FAVR for precision (regional cost variation, higher-mile drivers, maximum benefit). 
2. TFCA if your teams need ownership costs covered but want simpler administration.
3. CPM for occasional drivers. 

Also, you can have a blend of programs within your driver pool. You don’t need to pick just one!

Focus on Safety & Compliance: Conduct MVR checks at regular intervals. Ensure drivers carry adequate insurance for personal vehicles used in field work.Provide targeted driver training, especially if service work involves high-mile routes or inclement weather driving.

Review Regularly: Reimbursement rates should be revisited quarterly or semi-annually, especially given fluctuating fuel, insurance, and maintenance costs. Monitor usage patterns—if average mileage spikes significantly, re-evaluate whether FAVR or a higher CPM is needed.

Conclusion

Field Service Technicians and Engineers are a highly mobile workforce, averaging 65.17 trips and 1,106 miles per month in this dataset. These drivers often benefit from flexible Vehicle Reimbursement Programs (VRPs), which allow companies to avoid heavy fleet ownership costs while meeting the on-the-ground realities of customer site visits. FAVR and TFCA structures remain popular, with FAVR offering maximum precision and TFCA providing simpler administration.

Comparisons with the food & beverage, chemical, and construction industries show that field service often sits squarely in the midrange for monthly mileage and trips. Like its industrial peers, the field service profession must strike a balance between specialized vehicles (for heavy tools or advanced equipment) and reimbursing personal vehicle use (for more general tasks). Ongoing audits, accurate mileage tracking, and safety compliance are imperative to maintain cost efficiency and driver satisfaction.

By understanding these data-backed trends and tailoring vehicle reimbursement to field service demands, companies can optimize their programs, reduce administrative burdens, and support technicians with fair, compliant, and cost-effective compensation.

References and Further Reading

• Food & Beverage Industry Report
  
• Chemical Industry Reimbursement Analysis
  
• Construction Industry Reimbursement Report

For questions about FAVR, TFCA, or to implement a customized vehicle reimbursement program for your field service teams, visit Cardata.co.