Hired and Non-Owned Auto Insurance Cost

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While running a business, rarely do all your activities take place in the same location. Depending on your industry, you or your employees may have to drive to various locations to meet customers or vendors, and/or visit job sites. During a work day, you may end up spending a considerable amount of time in a personal vehicle; not including your commute. You may assume that individual personal car insurance will cover any accidents that happen under these scenarios, but you’d be wrong. Regular car insurance does not cover accidents that occur during work-related activities. If you or an employee gets into an accident and causes harm, your company will be responsible for the damages. Without insurance, you will have to pay for the legal costs and potential liabilities out of pocket. That’s why you need hired & non-owned auto insurance. 

With this guide, we aim to provide you with all the information you need to know about hired & non-owned auto insurance costs. After reading it, you should feel confident about your search for the right policy for your company.

We Cover in This Guide

  • How much does hired & non-owned auto insurance cost?

  • What is hired & non-owned auto insurance?

  • What does hired & non-owned auto insurance cover/not cover?

  • Benefits and risks

  • Tips for buying

  • Types of insurance you may need 

  • FAQ

  • Summary

How Much Does Hired & Non-Owned Auto Insurance Cost?

Hired & non-owned auto insurance costs range from $134 to $172 per month depending on your provider, number of vehicles, number of drivers, coverage, limits, risks, driving record, and claims history. Some providers will allow you to add this coverage to an existing commercial auto insurance policy for as little as an additional $10 per month. Once you have the main coverage, you can typically add extra drivers for around $100 per year.

What is Hired & Non-Owned Auto Insurance?

Depending on the nature of your business, you may not think about the risks involved as you and your employees travel to each of your destinations throughout the day. If you own company vehicles, transport expensive equipment, or make your living driving people or making deliveries, of course you need insurance. But simply meeting a client somewhere in the middle of the day? That is not a risky scenario. If you get into an accident and cause significant damage or even injury, however, you’ll quickly learn the importance of proper coverage. Hired & non-owned auto insurance is a policy designed for this potential liability and others involving conducting business activities in personal or rented vehicles. It is extremely important for all businesses to get proper coverage to protect them against these possible claims.

What Does Hired & Non-Owned Auto Insurance Cover/Not Cover?

Hired & non-owned auto insurance covers third-party harm, damage, and injuries that you or your employees may cause while driving personal, rented, or other non-company-owned vehicles. The following are some examples of scenarios covered by hired & non-owned auto insurance:

  • You rent a car on a company trip, get into an accident, and cause significant damage to another vehicle

  • An accident occurs while driving your personal vehicle to a client lunch meeting

  • Your boss asks you to deliver a gift to a client and you get into an accident

The biggest exclusions to common hired & non-owned auto insurance policies are the damage to the vehicle you or your employee is driving, your own assets, and personal injuries. To protect yourself from these potential liabilities, you will need separate coverage. Additionally, hired & non-owned auto insurance does not cover scenarios involving company-owned vehicles.

Benefits and Risks

Hired & non-owned auto insurance offers countless benefits to cover the risks of driving your own or a rented vehicle for company business The following are some examples:

  • Peace of mind: Sometimes something comes up that requires a trip outside the office. With this coverage, managers and subordinates will not have to think twice about getting in their car.

  • Protecting business assets: Even if you are not responsible, the cost of car accidents can potentially destroy your business. Hired & non-owned auto insurance will cover these liabilities.

  • Cover legal expenses: Lawsuits are time-consuming and costly. One claim can be extremely damaging to your firm. If a car accident results in someone suing you, your legal costs are covered, as is the damage if you are found responsible. 

Tips for Buying

Hired & non-owned auto insurance cost is not always easy to understand. The following are some tips you should consider before purchasing a policy.

  • Work with an independent agent: An independent insurance agent will help direct you toward providers with the best rates and the most experience covering the needs of your industry. 

  • Identify your risks: You should consider your number of employees, their driving record, and how they use their vehicles to identify potential risks. 

  • Compare quotes: Rates tend to vary between insurance providers. Take a look at three quotes to find the best rates and coverage.

Types of Insurance You May Need


- What is the difference between commercial auto and hired & non-owned auto insurance?

Commercial auto insurance covers liabilities involving accidents with company-owned vehicles. Hired & non-owned auto insurance covers third-party injury and property damage when employees use their personal or rented vehicles for business purposes.

- How can I cover injury to the employee driving the car and damage to the vehicle itself?

Having comprehensive workers’ compensation coverage will cover employee injury. Check with your provider to make sure that car accidents are included. To cover harm to the vehicle you or your employee is driving, you may have to add hired physical damage coverage.

- What are some suggestions for reducing cost?

See if your provider offers discounts for bundling policies. Insurance companies will often lower your rate if you combine certain coverage. One common way is to add hired & non-owned auto insurance to your existing commercial auto policy.


Hired & non-owned auto insurance is an essential coverage for most businesses. While car accidents may not be the first risk you think about for your company, you put yourself in danger every time you or your employee makes a delivery or simply meets a client. If you get into a serious accident, you will be thankful for the coverage.

After reading this guide, you now have all the necessary knowledge about hired & non-owned auto insurance costs to make a great decision. You should feel secure about your ability to protect your business against the liabilities it may face.

Typical cost is


Hired & non-owned auto insurance cost ranges from $134 to $172 per month depending on your provider, number of vehicles, number of drivers, coverage, limits, risks, driving record, and claims history.

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