Hired and non-owned auto insurance (HNOA) protects vehicles that your business uses but does not own, including rented, leased and personal owned vehicles. The cost of the policy depends on many factors, including how many vehicles you use and the demographics of your drivers.
Because vehicles used for business purposes have higher liabilities, hired and non-owned auto insurance tends to be more expensive than your personal auto policy. It usually costs about the same as commercial auto insurance.
Although TechInsurance does not have exact figures for hired and non-owned auto insurance policies, you can use the cost information for commercial auto insurance for reference.
If you want liability protection that covers a wide range of risks (e.g. property damage, medical bills, bodily injury, legal expenses, etc.), then you will have to pay for a more expensive commercial auto policy. High coverage limits cost more than basic coverage.
Among TechInsurance small business customers, the median limit is $1 million for auto insurance. Policyholders with a large fleet of high-value vehicles might choose higher limits to cover potentially higher claims.
Hired and non-owned auto liability coverage protects your personal, leased, and rented vehicles that you use for business purposes.
Your coverage limits and types of vehicles are just a couple factors that will influence your HNOA insurance rates.
Your insurance provider will also look at:
It's simple: The more vehicles you own or rent, the more opportunities there are for a car accident to occur.
Even if you are an independent contractor or sole proprietor with one vehicle, it's still a good idea to carry hired auto coverage to protect yourself from the high costs associated with accidents, such as medical expenses from bodily injuries.
Without it, you will be responsible to pay for medical payments and other costs out-of-pocket as your personal auto insurance likely won't cover these expenses.
Any insurance claims you’ve made in the past on your HNOA insurance policy will likely result in higher premiums in the future.
Your employees' driving records will impact your cost of hired and non-owned auto insurance. An employee with a history of collisions and speeding tickets can mean higher premiums.
In addition, the demographics of your employees are another factor that insurance providers will consider. Having younger drivers will less experience may be more costly compared to older, more experienced drivers.
Policies with high deductibles cost less, but you’ll have to pay that amount before you can collect on a claim.
There are things you can do to keep your HNOA insurance policy costs low.
Some strategies include:
You can usually pay your premium in monthly or annual installments. While it might be tempting to pay monthly premiums, consider paying the full premium instead. Many insurers offer discounts for businesses who pay this way.
Choosing a higher deductible is an easy way to save on your premium, but make sure to choose a deductible you can still afford. If you can’t pay your premium, you won't be able to collect on a claim.
If your business has no claims history, you’ll likely pay lower insurance rates. An effective way to reduce claims is to create a comprehensive risk management plan.
For example, you might:
Liability claims can be a threat to your tech business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.
TechInsurance is a trusted insurance expert for small businesses, including contractors and consultants, with extensive knowledge of the IT sector. We help business owners compare quotes from top-rated insurance carriers, buy policies based on your business needs, and manage coverage online.
By completing TechInsurance's easy online application today, you can compare free quotes for HNOA insurance and other types of liability coverages from top-rated U.S. carriers. TechInsurance insurance agents are available to help answer any questions you may have.
Once you find the right policies for your small business, you can begin insurance coverage in less than 24 hours and get a certificate of insurance for your small business.
Insurance premiums vary based on the policies a business buys. View our small business insurance cost overview or find out the average costs for other common types of business insurance.