The Difference Between Hired and Non Owned Coverage

hired and non owned auto insurance

Automobile insurance is a common and necessary type of insurance for any business which requires the transportation of people or goods with the use of vehicles. However, it’s important to note that most general auto insurances only cover any vehicle that is specifically owned by the company that is under the insurance policy. If you’re a business that makes use of vehicles that do not specifically belong to you, you’ll need to find a program which included hired and non owned auto insurance. Depending on a few factors, you may need one or both.

Hired Auto Insurance

If you plan to have your employees drive rented vehicles, then these cars would require hired auto insurance. This policy covers in cases where your business has hired out a vehicle that belongs to another company entirely. This may also be required for valet services.

Non-Owned Auto Insurance

Some businesses simply allow their employees to drive their own personal cars. However, even if the employee has their own auto insurance, it will not be able to cover the car in a case where an accident or problem occurs while doing work for your business. Instead, you’ll be expected to handle it with your own policy, requiring non owned auto insurance.

If you plan on using vehicles in similar ways to what is mentioned above, be sure to get hired and non owned auto insurance, whether for one particular situation or both.