Many companies operate their daily operations with automobiles they don’t own. It covers both automobiles that are rented from them (hired) and those that they do not own (non-owned). These automobiles come with a typical automotive loss vulnerability that many business owners are unaware is endangering their company’s assets for cheap car insurance quotes. The dangers and potential insurance choices are mentioned below.
Hired cars are the ones your company is leasing, hiring, borrowing, or renting and utilizing while conducting business. The term ‘hired cars’ does not apply to any vehicles you lease, hire, rent, or borrow from your workers, partners, limited liability members, or family members.
If you rent a car for business use and get into an accident, hired vehicle insurance might assist in covering the costs if a claim is made against your company due to the accident.
Employee-owned automobiles utilized for work purposes are referred to as non-owned vehicles. The following are typical situations that result in claims for non-owned vehicles:
- Every week, an administrative assistant uses their car to conduct errands for the company, including traveling to the bank or the post office.
- Employees in sales or customer service are given money for personal transportation instead of company vehicles.
If a worker in one of the situations above were to be involved in an accident and determined to be at fault, non-owned auto insurance coverage would come into play. State laws differ, but generally speaking, your company is liable if you are at work when the accident happens and are at fault.
The employee must have enough car insurance liability coverage limits on their insurance since non-owned car liability insurance is used once the employee’s auto limit has been reached.
What Hired and Non-Owned Auto Insurance Covers?
Hired and non-owned insurance offer liability protection for physical harm and property damage suffered when you or your workers drive for work. It is how it goes:
- If your company is liable for carelessness due to a car accident, the insurance will apply.
- The hired or non-owned vehicle’s collision damages are not covered by it.
- You may often add hired and non-owned auto coverage to your general liability coverage and comprehensive insurance policy.
Why Do You Need This Protection?
You could be deemed negligent in the case of an accident for several reasons, including:
- The worker’s insurance is no longer valid.
- The amount of damages is more than this limit, even if the employee only carries the bare minimums mandated by the state.
- The employee’s car isn’t kept up to date.
- The employee has a subpar driving history.
There are no fleet controls or rules in place at your organization to deal with these problems with staff cars utilized for work.
Are Hired and Non-Owned Auto Coverage Needed?
Getting hired and non-owned auto coverage is crucial if your company leases or borrows vehicles for work or if your workers drive their vehicles for the company. It can assist in covering any damage to property that hired cars do while being utilized for business purposes. It also includes any company-owned automobiles that harm another driver’s body in a collision.
Any small business that can meet the underwriting criteria of an insurer is eligible for hired and non-owned vehicle insurance offering cheap car insurance quotes. These are determined by details including the size, credit standing, and history of vehicle insurance claims of a firm.
Who needs non-owned and rental car insurance?
Small companies are suitable candidates for hired and non-owned car insurance if they routinely rent automobiles for work trips, lease cars for lengthy periods, or allow staff to use their vehicles for company duties. The same goes for those that frequently rely on staff automobiles during busy business hours.
What is the price of HNOA Insurance?
As with every insurance policy, a few variables affect the price.
Non-owned coverage: The cost is influenced by your company’s personnel count and your geographic location. Because there are more chances of someone driving their car and getting into an accident, the premium increases as you hire more people.
Hired coverage: In this case, the premium is based on the yearly cost of renting cars. At the start of the insurance, you will often be asked to estimate your rental vehicle charges. Some insurers may ask you for your actual expenses at the end of the year and charge you (or give you a refund) for the difference.
Does a Business Need Commercial Auto Insurance?
Most likely, the rental vehicles for your business are not covered by your personal auto insurance policy. Additionally, if you have an accident while operating your car for work, it won’t assist in paying third-party claims.
A personal auto insurance policy with cheap car insurance quotes might collaborate with hired and non-owned coverage if a work-related accident damages another person’s property or medical expenses that exceed personal vehicle insurance coverage limitations.