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Hired & Non-Owned Auto Insurance

Coverage for businesses that use rented or employee-owned vehicles for work

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Add hired and non-owned auto coverage when you purchase a commercial auto policy to get protection for:

Rental vehicles

You’ll know that you're covered whenever you use a rental for work.

Personal vehicles

You won’t have to worry about paying for all the damages if employees occasionally drive their personal car on the clock.

Property damage

Get help expenses if your rental or employee’s vehicle damages someone else’s property.

Legal defense

Safeguard your small business from lawsuits related to rental or employee-owned vehicle accidents.

Here’s everything you need to know about Hired & Non-Owned Auto insurance:

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What is Hired & Non-Owned Auto insurance?

It’s essential to make sure you and your employees are covered whenever you are behind the wheel. 

Add HNOA coverage when you purchase a commercial auto policy for coverage when you or your employees drive a rented vehicle. It can also provide protection if an employee sometimes uses a personal vehicle for work.

Depending on the policy you purchase, coverage can pay for expenses up to your policy limit:

  • If someone’s property is damaged
  • If someone other than you or an employee is injured
  • If you have to defend a lawsuit or pay a legal judgment

Who needs Hired & Non-Owned Auto insurance?

Any business owner or employee who uses rented vehicles or employees who occasionally use a personal vehicle for work purposes can benefit from HNOA coverage. Here are some real-world examples of how it works: 

Construction trades

Your employee is picking up a few random materials for a home remodel job using a personal vehicle. They accidentally back into your client’s garage door, and now it won’t open. Your HNOA insurance will help pay for repairs to the garage door after your employee’s personal auto policy reaches its limit.

 

Real estate professionals

You ask a part-time assistant to put up signs for an open house. While driving to the property, they get into an accident. When your assistant’s personal auto coverage reaches its limit, your HNOA insurance will help pay for damages to the other vehicle.

 

Consultant businesses

You rent a vehicle to visit a client’s office 50 miles away from your home office. On the way, you get into an accident and another driver is injured. HNOA insurance covers the damage to the other vehicle and the other driver’s medical expenses up to your policy limit (damage to your rental, however, is not covered by HNOA).

How is HNOA different from Commercial Auto insurance?

Commercial auto insurance is essential for vehicles used for work, and it’s required by law in most states. It can help pay for expenses not covered by personal auto insurance if you or an employee get in an accident while driving for work.

For example, if you have two trucks owned by your construction business and one is damaged after an employee accidentally backs into a cement wall, your commercial auto insurance could help pay for repairs. If someone is injured during the accident, your coverage could also pay for medical expenses up to your policy limit.

If that truck were a rental or a vehicle owned by one of your employees, commercial auto insurance typically wouldn’t cover the expenses. With hired and non-owned auto insurance, you expand your coverage to include rented vehicles and occasional use of employee-owned vehicles. 

What does HNOA cover?

Many businesses need to rent vehicles or have employees that occasionally use their personal vehicle for work. Because commercial auto insurance only goes so far, HNOA creates a financial safety net that protects your business if something goes wrong. 

HNOA insurance can help pay for expenses if someone’s property is damaged or if someone other than you or an employee is injured in an accident involving your rental or an employee’s personal vehicle while driving for business. It can also help cover expenses to defend a lawsuit or pay a legal judgment.

Rented vehicles

Many businesses need to rent vehicles to transport equipment, drive to clients or attend business events. Your HNOA insurance can help pay for medical expenses if someone else is injured or you damage someone’s property while you are driving a rental.

Non-owned car insurance vs. rental car insurance


Some rental companies offer liability coverage that is similar to non-owned car insurance. However, prices and coverage vary between different rental companies, and you’ll need to carefully read the fine print every time you rent a vehicle. One day of rental insurance could be close to the entire monthly cost of an HNOA policy.

With HNOA insurance, you’ll know exactly what you are paying for and how much you are paying for coverage every time you rent.

Use of a personal vehicle for work

We know that many businesses have employees that occasionally use their personal vehicle for work. With HNOA, you and your employees will have a financial safety net that is not always provided by personal auto insurance if there is an accident while driving for work.

For example, if your employee uses a personal vehicle to remove temporary signs for your business and there is an accident, your HNOA coverage can help pay expenses if someone other than your employee is injured or property is damaged.

It’s important to note that this coverage is offered on an “excess basis” — meaning it kicks in once the employee’s personal auto coverage reaches its limit or their insurance company denies coverage.

Defense costs and legal judgments

If an accident happens while driving a rented or personal vehicle, it can hopefully be resolved without legal action. Unfortunately, that is not always the case and you could find yourself defending a lawsuit if someone claims it was your fault.

Your HNOA policy can cover lawyer fees, and other legal expenses and judgments up to your policy limit.

What is not covered by HNOA?

Commercial auto insurance with hired and non-owned auto coverage is an important part of your business insurance package. However, there are some damages it does not cover, including:

  • Damage to the rented vehicle 
  • Damage to your employee’s vehicle 
  • Goods or equipment you are transporting
  • Accidents that happen during a commute to or from work

It’s also important to consider other business insurance coverage options to make sure you are protected from additional risks:

General Liability insurance

Most businesses purchase general liability insurance so they are protected from financial losses if someone other than an employee gets injured or there is damage to someone’s property in an accident that doesn’t involve driving. You can add tools and equipment insurance to this policy to help pay for repair and replacement costs if your gear is damaged, stolen or lost.

Workers’ Compensation

Workers’ compensation insurance can cover medical bills, lost wages and other expenses if you or an employee are injured on the job. Most states require it as soon as you hire your first employee.

Professional Liability insurance (a.k.a errors and omissions coverage)

Professional liability insurance, also known as errors and omissions insurance, can cover associated costs when a client claims you gave bad advice, made a mistake or missed a deadline and caused financial harm.

How much does it cost?

Hired and non-owned auto insurance is offered as an upgrade to your commercial auto insurance policy. Basic coverage can start at about $7 a month. 

A Pro policy starts as low as $8 a month or choose a Pro Plus policy for around $12 a month. Your quote might be slightly lower or higher depending on your business location and operation.

How do I get Commercial Auto insurance?

With Next Insurance, you can purchase commercial auto coverage online and get your certificate of insurance in less than 10 minutes. 

Start an instant quote to see options for your business. Here’s how the process works:

We’ll ask you some basic questions about your business and operations, including: 

  • Your industry
  • Where you do business
  • How many years you have owned the business
  • How many vehicles you need to insure
  • The number of drivers you need to cover
  • You driver’s license
  • Expected annual revenue
  • Recent insurance and claims history

After you share your information, you’ll have instant access to a customized online quote for commercial auto insurance and other recommended coverage. 

If you like what you see, you can adjust the package limits and make your purchase. Your insurance will begin immediately after payment, and you’ll have access to your certificate of insurance.

Start a free instant quote today.

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Let’s find the coverage you need for your business.

Business insurance is divided into different policies. We offer 7 types so it's easy to design the coverage that fits your business.

General Liability Insurance General Liability

Protect yourself from accidents that cause physical injury or damaged property.

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Professional Liability or Error and Omissions Insurance Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

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Workers' Compensation Insurance Workers' Compensation

Cover medical bills and lost wages if your employees have an accident at work.

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Commercial Auto Insurance Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

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Tools & Equipment Insurance Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

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Commercial Property Insurance Commercial Property

Keep your building, inventory and equipment protected from fire, flood or water damage.

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Business Owner’s Policy Insurance Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

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