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

Hired and non-owned auto insurance covers damages caused by vehicles that your business uses but does not own. That includes legal fees, medical bills, and property damage.

Hired and non-owned car insurance provides coverage for:

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Legal costs
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Medical bills
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Auto repairs
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Accidents involving uninsured motorists

Legal costs

Hired and non-owned auto insurance usually includes liability coverage, which covers the cost of lawsuits from other people involved in an accident. This coverage can pay for:

  • Repair costs for another person's damaged vehicle or property
  • Medical bills for other people involved in the accident
  • Legal costs if a person outside your business sues over the accident

Example: While transporting materials to a job site in his personal vehicle, a painter rear-ends another car. The accident is the painter’s fault, so the driver of the other car sues to recoup the cost of repairs and medical bills. The painter’s hired and non-owned auto insurance policy covers the cost of the lawsuit, as well as the settlement or judgment.

Medical bills

Hired and non-owned auto insurance policies usually includes medical payments coverage, which covers the cost of your medical bills. This coverage can pay for:

  • Your medical expenses if you're injured in a car accident
  • The medical expenses of passengers in your vehicle

This coverage is available regardless of who was at fault in the accident.

Example: On the way to a wedding reception, a caterer collides with another vehicle while driving the van she rented to deliver the food. No one is seriously injured, but the caterer and her waiters receive emergency medical treatment at a local hospital. The catering company’s hired and non-owned auto insurance policy steps in and pays the medical bills.

Auto repairs

Hired and non-owned auto insurance usually includes protection against vehicle theft and damage. This coverage can pay for damages caused by:

  • Collisions
  • Vandalism
  • Extreme weather

Example: A landscaper rents a pickup for business use, but a strong hailstorm puts dents in the truck's windshield. When the landscaper returns the van, the rental company asks him to pay for the damage to the vehicle. The landscaper’s hired and non-owned auto insurance policy kicks in and covers the cost of replacing the windshield.

Accidents involving uninsured motorists

Nearly one in eight drivers doesn’t have auto insurance [PDF]. If an uninsured driver collides with your vehicle, they may not be able to pay for the damage they cause. Hired and non-owned auto insurance ensures you won’t pay out of pocket if you’re involved in an accident with an uninsured motorist, according to the Insurance Research Council.

Example: A florist is making a delivery when a driver runs a red light and collides with her vehicle. The other driver forgot to renew his auto insurance policy, so there’s no way for the florist to recoup the cost of repairing her vehicle from him. Instead, her hired and non-owned auto policy ends up paying for the damage caused by the uninsured motorist.

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Hired and non-owned auto insurance does not cover:

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Business-owned vehicles
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Personal use of vehicles

Commercial auto insurance covers business-owned vehicles

Commercial auto insurance, not hired and non-owned auto insurance, helps pay for medical bills and property damage related to an accident in a business-owned vehicle. It also covers vehicle theft and other types of damage to a business-owned vehicle. Read more about commercial auto insurance coverage.

Personal auto insurance covers personal use of vehicles

Hired and non-owned auto insurance only covers accidents that take place while you’re using a personal or rented vehicle for work purposes. It doesn’t cover accidents that happen while you’re using the vehicle for personal reasons, which includes your commute to and from work.

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