Hired and Non-Owned Auto Insurance
Hired and non-owned auto insurance covers a business's liability when employees drive vehicles the business doesn't own, whether that's a rental car on a business trip (hired auto) or an employee's personal vehicle used for a work errand (non-owned auto). A standard commercial auto policy only covers vehicles the business actually owns, so without this coverage there's a real gap the moment an employee drives their own car to the bank or picks up a rental at a conference. The Allen Thomas Group adds HNOA coverage for clients whose employees regularly drive on company business without a company vehicle fleet.
Hired Auto vs. Non-Owned Auto
| Type | What It Covers |
|---|---|
| Hired Auto | Rented, leased, or borrowed vehicles used for business purposes |
| Non-Owned Auto | Employee-owned or third-party vehicles used occasionally for business tasks |
Who Actually Needs This
This coverage matters most for businesses with no company-owned vehicles at all, but whose employees run errands, make deliveries, visit client sites, or drive to the bank in their own cars during work hours. It's equally relevant for businesses that regularly rent vehicles for business trips, trade shows, or temporary staffing needs.
Why the Gap Is Bigger Than People Think
HNOA covers the business's liability exposure, not damage to the vehicle itself, and it doesn't replace an employee's personal auto policy. When an employee causes an accident while running a work errand in their own car, the employee's personal insurer is typically still primary, and HNOA sits excess, covering the business specifically for its own liability in that incident. Without it, the business can be named in a lawsuit with no policy responding on its behalf at all.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how hired and non-owned auto insurance affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
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