Hired and non owned auto coverage: why small businesses need it
One of the lowest cost items on a commercial policy, and the one that protects you when an employee drives a rented truck or their own car for work.
- Hired and non owned auto coverage protects the business when someone drives a truck it does not own for work, such as a rented truck or an employee's own car.
- Your general liability policy does not cover auto claims. Without non owned auto coverage, the business is exposed directly when an employee causes a crash on a supply run.
- Ask every employee who drives for work to show proof of their own insurance once a year, and check their driving record first.
Hired and non owned auto coverage protects your business when a vehicle it does not own is used for work. It costs very little. It closes one of the most common gaps we see in South Texas businesses.
What each part covers
- Hired auto: vehicles the business rents, leases or borrows. The rental truck for a delivery, or the car rented for a trade show in San Antonio
- Non owned auto: cars your employees own and use for work errands. The office manager picking up supplies, a salesperson driving to a customer, an employee taking the deposit to the bank
Why the employee's own insurance is not enough
The employee's policy is primary, meaning it pays first. It is usually a personal policy with modest limits. Say your employee causes a serious crash on a work errand. The injured person will go after the employee's policy first, and your business second, because the business had the benefit of the trip.
Your general liability policy covers injuries and damage from your work. It does not cover auto claims. Without non owned auto coverage, the business is exposed directly. See when a business needs a commercial policy at all.
Who needs it most
- Any business whose workers run errands, make deliveries or visit customers
- Businesses that rent trucks for a season
- Contractors whose crews sometimes take their own trucks to a job
- Businesses with no trucks of their own at all. That is exactly the group that assumes it needs no auto policy
What it does not do
It does not pay for damage to the employee's own car. That stays with their policy. Hired auto physical damage can be added. It pays to repair a rented truck. It is worth having if you rent trucks with any regularity, because rental companies pursue damage aggressively.
Practical controls to pair with it
- Ask every employee who drives for work to show proof of their own insurance once a year
- Check motor vehicle records before you let anyone drive for work. That is the state's report of a person's driving history. See how underwriters read a driver list.
- Put a written rule in place about phone use and passengers on work trips
- Pay mileage, which documents the work use and keeps the records straight
It is inexpensive
On most small business policies this is one of the least expensive items on the page. Customers who ask for a certificate of insurance usually expect to see it listed. Ask us to price it on your renewal. Use the commercial quote form on this page, or call our McAllen office at (956) 687 3334. Se habla español.
Common follow-up questions
We have no company vehicles. Do we still need it?
Often yes. If any employee ever drives for work, including a supply run, the risk exists.
Does it cover the owner's personal car?
Usually not. Cars owned by the named insured, or by people in their household, are typically excluded. The named insured is the business or person the policy is written for. That is why owners' cars are usually listed on the policy directly.
Is this the same as a rental car waiver?
No. The waiver at the counter covers the rental company's vehicle. Hired auto liability covers the harm you cause to others while driving it. See how rental counter coverage works.
Commercial auto quote. Eight quick questions, then a licensed agent in McAllen calls you with the number.
What do you drive for work?
Pick the closest one. Your agent will sort out the details.
How many trucks?
Count every vehicle the business uses, including one you own personally.
What is the work?
Welder, landscaper, produce hauling, deliveries. A few words is enough.
Does a customer or general contractor need a certificate from you?
Many contracts ask for a one million dollar limit. If you have the requirement in writing, keep it handy for the call.
Do you have a USDOT number?
Needed for crossing state lines in a truck over 10,000 pounds. Not sure is a fine answer.
Who are we quoting?
So your agent knows who they are calling.
Where should we call you?
One call with your quote. No robocalls, no list selling.
Want a copy by email?
Optional. It means you have the numbers in writing after the call.
By pressing “Get my quote” you agree a licensed McAllen Insurance Group agent may contact you by phone, text or email at the details you provide, including by automated dialing. Consent is not required to buy. This is a request for a quote, not an application, and not an offer of coverage.
Getting your request to an agent
We have your request
An agent will call you with the quote. Have your registration and any contract requirements nearby. If you would rather not wait, call us now.
Call (956) 687 3334Monday to Friday, 9 AM to 6 PM. Se habla español.
Read next
Do I need commercial auto insurance?
Commercial Auto · 4 min read
Gerino Alejos
Licensed insurance agent · License 3128710 · NPN 18243381
Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.