What is hired and non-owned auto insurance?

Hired and non-owned auto (HNOA) insurance protects your business when you rent, lease, or borrow someone else's vehicle. It can also help when an employee uses their personal car for business. Standard commercial auto insurance from Progressive Commercial provides excellent protection when you take your business on the road. However, it generally only covers the vehicles your company owns.

Although hired and non-owned insurance are separate coverages, they can complement each other. Let's look at how you may benefit from having both.

What is hired auto insurance?

Hired auto coverage protects your business when you hire, lease, rent, or borrow a vehicle for work purposes. If that vehicle is involved in an accident that causes bodily injury or property damage to others, this coverage can help with liability costs. Examples include:

• Leasing a truck for a short-term work project
• Renting a van for an employee business trip
• Borrowing a vehicle from another company

What is non-owned auto insurance?

Non-owned auto insurance applies when employees, volunteers, or others use their personal vehicles for your business activities. If they cause an accident while doing work for you, your business could be held responsible even though you don't own the car. This coverage can protect against these third-party claims. Examples include accidents that happen when:

• A sales rep drives their car to a client meeting.
• Your employee uses their personal vehicle to deliver products.
• A volunteer transports supplies to a company-sponsored event in their SUV.

Can you have both hired and non-owned auto coverage?

Yes. Having both coverages can be helpful if you face liability risks from different types of vehicle use. At Progressive Commercial, hired auto insurance is usually only available to businesses that spend less than $5,000 annually on rental cars. Non-owned insurance may be an option if fewer than 10 employees use their own vehicles for work.

Who needs hired and non-owned auto liability insurance?

If you don't own business vehicles but still have potential auto liability risks, HNOA insurance coverage could be beneficial. You should consider these protections if:

• Your employees use personal cars for company work.
• You rent, lease, or borrow vehicles for business use.
• You operate your business without company-owned vehicles but still require transportation.

HNOA coverage is especially common for businesses like:

• Consultants
• Contractors
• Delivery and courier services
• Nonprofits

Personal auto policies usually exclude business use. If one of your employees gets into an accident while driving their car for business activities, their personal auto insurance may not cover it, and your business could be held liable.

What does hired and non-owned auto insurance cover?

Hired and non-owned auto coverage focuses on liability protection, such as:

• Third-party bodily injury and property damage: Covers court costs and settlements if your business is responsible for an accident.
• Legal defense costs: Pays for your defense even if you're not found liable for a collision.

What doesn't hired and non-owned auto insurance cover?

Hired and non-owned auto insurance offers important liability protection, but it doesn't cover every situation. Common exclusions include:

• Damage to the vehicle: Physical damage to the hired or non-owned vehicle isn't covered. You can extend protection with physical damage coverages, like comprehensive and collision insurance.
• Employee injuries: You'll need a separate workers' comp insurance policy to protect your employees for work-related injuries or illnesses.
• Personal use: HNOA doesn't apply when an employee uses their car for non-work driving, like commuting or personal errands. For that, they'd need personal auto insurance or a standard commercial auto policy, which covers both personal and commercial use.
• Property in the insured's care: This endorsement excludes damage to property in the insured's care, custody, or control, such as customer equipment.

Have questions about what hired and non-owned auto insurance does and doesn't cover? Progressive Commercial can help. Start a quote online or call us to explore your options and potential coverage gaps.

owned auto insurance does and doesn't cover? Progressive Commercial can help.

How HNOA insurance works

HNOA insurance can help cover injury and property damage claims when your business is held responsible in situations like:

• A pizza delivery driver crashes their personal car into a customer's mailbox while making a delivery.
• A sales representative uses their own vehicle to visit a client and accidentally rear-ends another car in traffic.
• You rent a truck for a trade show and hit another vehicle by mistake.

How to get HNOA insurance coverage

Hired and non-owned auto protection isn't automatically included in standard insurance policies, but you might be able to add it as an endorsement. To get HNOA coverage, you'll want to:

• Review how you use vehicles: This includes renting or borrowing vehicles for work, as well as employees driving their own cars for business purposes.
• Contact an insurance company: Call Progressive Commercial or get an online quote to add HNOA coverage to your commercial auto, general liability, or business owners policy (BOP).
• Review coverage details: Make sure you understand your insurance limits before finalizing a policy.

Why choose Progressive Commercial for HNOA insurance coverage

We're America's #1 commercial auto insurer,^* covering more than 2.2 million business vehicles nationwide. Our experts will help you choose auto insurance that meets your needs and fits your budget. We make it easy to get a quote online, chat with and insurance specialist, and make changes as your business grows.

Get complete auto protection with Progressive Commercial

Commercial auto insurance protects your business and partners. Get a quote from Progressive Commercial or call one of our expert agents to see how we can help.