What is Non-Owned Vehicle Liability Insurance or Hired Auto Insurance and why do you need it?

Non-Owned Vehicle Liability Insurance or Hired Auto Insurance

There are multiple ways to provide Liability coverage for non-owned vehicles based upon the needs of your business. These coverages are often times referred to as Hired Auto insurance and Non-Owned Auto insurance. You will also hear this coverage referred to as ISO 8 or 9. Our agency offers both Hired Auto insurance and Non-Owned Auto insurance.

What Insurance is available for Non-Owned Autos?

Most non-owned vehicles are covered by the commercial auto policy. As an example, if your vehicle is out of service due to a mechanical breakdown, then a temporary substitute car is automatically covered under certain circumstances. You could also purchase a variety of separate insurance coverages, including Hired Auto insurance and Employers' Non-Ownership insurance.

Employers' Non-Ownership Insurance

Employers Non-Ownership insurance provides liability protection when an employee has to drive their personally owned car for business purposes. This assumes that the car is not owned or registered in your name.

Hired Auto insurance




When you purchase hired auto insurance, your insurance company is providing you with liability insurance when you are driving a vehicle that is not registered to you. Also, if you rent a car for less than 30 days then your Hired Auto Insurance will extend liablity to the rental.

Who Needs Coverage for Non-Owned Autos?

Do you drive a vehicle for business that you do not own? If yes, then you need to consider picking up Non-Owned Auto Insurance.

Employers Non-Ownership insurance protects your business when employees use their own vehicles for a business purpose.
Hired Auto insurance protects you in situations when you drive a vehicle you don't own.

Non-Owned Auto Coverage Limits and Other Details

Both your Hired and Non-Owned auto coverage will typically use the same liability limits as what you have selected on your own liability.

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About the Author

Robert Woodard

Robert Woodard is President of Illini Community Insurance and specializes in Illinois Business Insurance