Hired and Non-Owned Auto Insurance
Save money by comparing insurance quotes from multiple carriers.
What kind of work do you do?
Person behind the wheel of a vehicle.
Logos of Insureon's business insurance carrier partners
We partner with trusted A-rated insurance companies

Frequently asked questions about hired and non-owned auto insurance

Hired and non-owned auto insurance (HNOA) protects any personal, leased, or rented vehicles that you and your employees may use for business purposes. Find out what HNOA covers, how to obtain this coverage, and the answers to other frequently asked questions.

Hired and non-owned auto insurance requirements and coverage

Is auto insurance required by law?

Most states require insurance for any individual or business that owns vehicles, except for New Hampshire and Virginia. Even in the states where it is not required by law, drivers can still be held liable for damages. If your business owns vehicles, then you likely need commercial auto insurance.

How do I know if I need hired and non-owned auto insurance?

If you or your employees use rented, leased, or your own personal vehicles for work then you probably need HNOA insurance. Your personal auto insurance is unlikely to cover you if you’re at fault in an accident during a work-related errand.

Learn more about how to get the right auto insurance for your vehicle.

What does HNOA cover?

HNOA insurance covers damages to other people’s vehicles and property if you’re at fault in a work-related accident. It also covers any liability for leased or rented vehicles used for work.

If you were in a collision while visiting a client in your own vehicle, HNOA insurance would cover the damage to the other person’s vehicle, their medical bills, and any lawsuits that result. Without this coverage, you’d likely have to pay these costs out-of-pocket as your personal auto insurance would not cover a work-related accident.

What is the difference between "hired" and "non-owned" auto coverage?

Hired and non-owned auto insurance provides liability coverage for personal, leased, or rented vehicles.

"Hired" auto coverage offers protection for rented or leased cars that you or your employees may use to complete work errands. Whereas, "non-owned" coverage protects your own car or employees' personal cars that are used for work purposes.

Does hired and non-owned auto insurance offer primary coverage?

HNOA coverage is secondary coverage. Primary insurance coverage is provided by the owner of the vehicle, such as yourself, an employee, or a rental company. If you were in a work-related accident in your own vehicle, your personal auto insurance would be considered the primary coverage for any claims or lawsuits that result.

How does hired and non-owned auto coverage work?

An HNOA policy covers personal, rented and leased vehicles used by you and your employees for work-related errands. Your personal auto insurance covers you for accidents while driving to and from work, but not when you’re visiting clients, making deliveries, picking up supplies, or transporting equipment.

If you were at fault in a work-related accident in your own car, your personal auto insurance may cover any repairs to your own vehicle. Your HNOA insurance would cover any third-party liabilities, such as damage to another vehicle or property, injuries, lawsuits, and settlements.

Should self-employed or independent contractors get HNOA?

It depends on your situation. If you work from home and don’t use your personal car for work-related errands, then you might not need HNOA insurance.

On the other hand, if you’re working for a rideshare or delivery company as an independent contractor, you ought to make sure you’re covered in case of an accident. You could accomplish this with HNOA insurance, or your personal auto insurance might be willing to extend your coverage to address your work situation.

What is extended non-owned auto coverage?

Extended HNOA coverage is a way to insure your business-owned vehicle under your personal auto insurance coverage, for an added fee.

This is especially useful for business owners who use their company car for personal errands, which would not be covered under a commercial auto policy.

With extended HNOA insurance, you can avoid any potential gaps in your liability coverage that could happen when using a business vehicle for personal use. Just keep in mind that an extended HNOA policy typically doesn’t cover damage to the vehicle itself.

Can I add additional insured to my HNOA policy? 

Yes, you can add an additional insured endorsement to your HNOA policy. This allows you to extend your HNOA coverage to another individual or business.

How to buy hired and non-owned auto insurance with Insureon

How quickly can I get hired and non-owned auto insurance with Insureon?

Our online application for HNOA insurance takes just a few minutes to complete. The application requires some basic information about your business, including where it’s located, the number of employees, and estimated revenue for the upcoming year.

In most cases, we’ll deliver multiple quotes from top U.S. carriers as soon as you finish the application. Look them over and pick the policy that works best for you. A licensed Insureon agent is available to assist you throughout the process.

Once you purchase a policy, you can access your account and obtain proof of insurance. Typically, it takes between 24 and 48 hours to complete the process and gain insurance for your business.

What happens if I need to buy more insurance later?

It’s easy to add insurance at a later date. Your insurance agent can adjust the coverage amount on your policy and provide assistance if you need to purchase additional policies.

What happens if I cancel my policy?

If you cancel your policy early, you run the risk of paying more for coverage down the road. Insurance companies typically charge higher rates to businesses that start and stop coverage. You also leave your business exposed to potential risks if you cancel your coverage.

Compare hired and non-owned auto insurance with other policies

Commercial auto vs. hired and non-owned auto insurance

Commercial auto insurance is required in most states for businesses that own vehicles. It helps with paying medical bills, the cost of property damage, and legal expenses in case of an accident. It may also cover things like vehicle theft and vandalism.

HNOA insurance covers any personal, leased, or rented vehicles when used for work-related purposes, such as making deliveries and picking up supplies. This coverage is optional but is worth considering for the financial protection it offers.

Read more about how hired and non-owned auto insurance differs from commercial auto insurance

Personal auto vs. hired and non-owned 

Your personal auto insurance provides liability coverage in case you’re at fault in an accident and must pay for damages to another person. If you have comprehensive auto coverage, it will provide physical damage coverage to your own vehicle as well.

If you’re in an accident while driving to and from work, you’d be covered by your personal auto insurance.

If you’re in an accident on a work-related errand, such as making deliveries, picking up supplies, or meeting with clients, your personal auto insurance is unlikely to cover you.

With HNOA coverage, you’d be covered for work-related mishaps. Without it, you’d likely have to pay for any damages out of your own pocket.

Learn more about the difference between personal and commercial auto insurance and when each policy will protect you in an accident.

Updated: December 16, 2022
Compare free small business insurance quotes 
Save money by comparing insurance quotes from multiple carriers.