Hired and non-owned auto insurance (HNOA) protects vehicles that your business uses but does not own. 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.
Several factors affect the cost of hired and non-owned car insurance, including:
Specific industry risks also affect how much you will pay for this policy. For example, you’ll pay more if you use hired and non-owned vehicles to transport more expensive or heavy tech equipment than you’ll pay if you use the vehicle for basic transportation needs. This liability policy would also cost more for companies that hire young employees with poor driving records, as opposed to older, more experienced drivers.
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. Businesses with a large fleet of high-value vehicles might choose higher limits to cover potentially higher claims.
A small business can take several steps to reduce the cost of hired and non-owned auto coverage. For example:
The fewer commercial auto insurance claims your business makes, the less your insurance premiums will cost. Learn how to further reduce liability claims against your business.
View our small business insurance cost overview or find out how much you can expect to pay for common types of business insurance coverage.