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Hired and Non-Owned Auto Insurance
Protect your tech company when using vehicles you don't own.
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Hired and non-owned auto insurance

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Hired and non-owned auto insurance

Hired and non-owned auto insurance (HNOA) provides liability protection for personal, rented, and leased vehicles that a company or freelancer uses for business purposes.

Does your tech company need hired and non-owned auto insurance?

State laws require commercial auto insurance for business-owned vehicles – but small tech companies often rely on vehicles they don't own. If your business uses personal, rented, or leased vehicles, hired and non-owned auto insurance (HNOA) can help.

HNOA protects against lawsuits from accidents involving personal, rented, and leased vehicles used for work purposes.

You can usually add it as an endorsement to your general liability insurance or business owner’s policy (BOP).

Hired and non-owned auto insurance provides liability protection

HNOA provides liability coverage when someone sues over an accident involving a personal, rented, or leased vehicle used by your business. This policy covers legal expenses related to:

  • Bodily injury liability
  • Property damage liability

In other words, you'll be protected if someone sues over injuries or other damages from the accident. However, this policy won't cover vehicle repairs.

Unlike commercial auto insurance, hired and non-owned auto insurance doesn't cover collision damage. You'll need a separate policy for collision.

Learn more about hired and non-owned auto insurance coverage.

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Tech companies that purchase hired and non-owned auto:

  • Rely on employees’ personal vehicles
  • Rent vehicles
  • Lease vehicles
  • Occasionally send employees on work errands

Personal auto policies don’t cover business use

You may think carrying personal auto insurance is enough. However, personal auto policies won't cover lawsuits related to business use.

If you get into an accident while driving your personal vehicle for work, your personal auto policy will cover the damage to your vehicle only. You could be sued and have to pay for damages and legal expenses out of pocket.

How much does hired and non-owned auto insurance cost?

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The cost of a HNOA policy is based on a few factors, including:

  • Number of vehicles
  • Vehicle value
  • Level of risk
  • Claims history
  • Employee driving records
  • Policy deductible and limits

Most states require commercial auto insurance for  business-owned vehicles

Vehicles registered to a business are required to carry commercial auto insurance in every state except New Hampshire and Virginia. State requirements set minimum liability coverage amounts for bodily injury and property damage, and in some instances, for uninsured motorist coverage.

Even if your business is located in one of the two exempt states, you are still liable for damages if your company vehicle is involved in an accident.

Updated: June 29, 2022