Hired and non-owned auto insurance (HNOA) covers vehicles that your business uses but does not own. The cost of the policy depends on several factors, including how many and the type of vehicles you use.
Because vehicles used for commercial purposes have higher liabilities, hired and non-owned auto insurance usually costs more than personal auto insurance and about the same as commercial auto insurance.
Though Insureon does not have exact figures for hired and non-owned auto insurance, you can use the cost information for commercial auto insurance for reference.
The number of vehicles you use, the value of the vehicles, the demographics of the drivers, and how often you use them all affect the cost of hired and non-owned auto insurance. Specific industry risks also affect how much you will pay for this policy.
For example, you’ll pay more if you use hired and non-owned vehicles to transport heavy machinery than you’ll pay if you use the vehicle for basic transportation needs. This policy would also cost more for companies that hire young employees with poor driving records, as opposed to older, more experienced drivers.
Find out more about the factors that affect the cost of hired and non-owned auto insurance premiums.
If you want auto insurance that pays for a wide range of damage, you will pay more for this policy. High coverage limits cost more than basic coverage. Among Insureon small business customers, the median limit is $1 million for auto insurance. Businesses with a large fleet of high-value vehicles might choose higher limits to cover potentially higher claims.
A small business can take several steps to reduce the cost of hired and non-owned auto insurance. For example:
Read "6 driving safety tips for businesses with employees" for more details on keeping your employees safe. Reducing accidents reduces your number of claims, which helps keep insurance costs low.
Getting the right auto insurance is also important. A cheaper policy won't do you any good if it doesn't provide coverage when you need it.
Insurance premiums vary based on the policies a business buys. See our small business insurance cost overview or explore costs for a specific policy.