Hired and Non-Owned Auto Insurance
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What is hired and non-owned auto insurance?

Hired and non-owned auto insurance icon
Hired and non-owned auto insurance

This policy provides liability coverage for accidents involving personal, leased, or rented vehicles used by your business.

Does your small business need hired and non-owned auto insurance?

It depends. If your business regularly uses vehicles that it doesn't own, you likely need hired and non-owned auto insurance (HNOA).

This policy covers vehicles that belong to you personally or to one of your employees. It also includes vehicles that your business rents or leases.

Small businesses often need this coverage without realizing it. You might not think it’s a big deal to occasionally ask employees to use their personal vehicles for work errands. But that can lead to auto liability issues.

For example, an employee might be involved in an accident while driving their car to meet a client. Because personal auto insurance doesn’t cover work driving, the other party could sue to recoup medical costs or other expenses.

Your business might also rent trucks or vans for deliveries. If you or an employee has an accident while driving a rented vehicle, HNOA covers the costs of any resulting lawsuits.

Why is hired and non-owned auto insurance important?

Hired and non-owned auto insurance keeps you and your employees from paying for auto liability lawsuits on your own. This type of lawsuit can be extremely expensive, especially if someone is injured.

Your insurance company most likely won’t allow you to use personal auto insurance for work-related accidents. That means you could be personally liable for non-owned auto liability lawsuits unless you have HNOA coverage.

What does hired and non-owned auto insurance cover?

Hired and non-owned auto insurance provides liability coverage, but it doesn’t cover damage to the vehicle that was being driven.

For example, say one of your employees drives to the bank to make a deposit for your business. If the employee gets into an accident, HNOA would pay for your business’s defense (since the employee was going to make a deposit on behalf of your business) but it would not pay for the damages to the employee’s car.

HNOA covers business owners and employees who use personal vehicles for deliveries, work trips, transporting clients, or other business purposes. It doesn’t cover accidents that occur while you’re commuting or running personal errands.

It also doesn’t cover vehicles owned by your business. The right policy for that is commercial auto insurance.

Woman on phone with car overheating.

HNOA provides coverage for:

  • Personal vehicles used for work
  • Employees driving for work errands
  • Car rentals for a business trip
  • Leased vehicles

Learn more about hired and non-owned auto insurance coverage.

How do you buy hired and non-owned auto insurance?

Many businesses add hired and non-owned auto coverage to their general liability insurance policy. You can also purchase HNOA separately, but sometimes buying the policies together can lower your insurance rates.

If your small business has higher than average non-owned auto liabilities, you can increase your coverage limit with commercial umbrella insurance. Umbrella insurance increases your maximum policy limit, meaning your insurance company can cover more expensive lawsuits.

To get started, fill out Insureon’s online application for small business insurance. Make sure to check boxes and answer questions related to hired and non-owned auto insurance to get quotes for this coverage.

How much does hired and non-owned auto insurance cost?

Man calculating cost of hired and non owned auto insurance.

Your cost is based on a few factors, including:

  • Number of vehicles
  • Vehicle value
  • Level of risk
  • Claims history
  • Employee driving records
  • Policy deductible and limits
View Hired and Non-Owned Auto Costs

What’s the difference between hired and non-owned auto and commercial auto insurance?

Hired and non-owned auto insurance covers vehicles that your business uses but doesn’t own. Commercial auto insurance covers business-owned vehicles.

A commercial auto policy is usually required by state law when your business owns a vehicle. This policy is typically more expensive, but it offers more coverage.

Commercial auto covers both auto liability (if you’re sued for bodily injury or property damage) and physical damage caused by accidents, theft, vandalism, and storms.

Learn the difference between HNOA and commercial auto insurance.

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