Non-owned car insurance can cover your liability when one of your employees occasionally uses his or her personally-owned vehicle for your business. That said, you should include all vehicles either owned or used regularly by your business on your commercial auto policy.
Are you looking for Non-Owner Insurance?
Non-owner insurance is liability coverage for drivers who don't own a vehicle. Someone who doesn't own a vehicle might need this coverage if they frequently rent cars, or are required to carry liability insurance to keep their driver's license.
You'll want to contact a licensed personal auto agent if you need this coverage.
Non-owned insurance extends the liability coverage on your commercial policy to your employees’ vehicles, but only for occasional use. Coverage could only apply as long as the vehicle is not owned, registered or contracted in the business’s name or on its behalf.
Who needs non-owned auto coverage?
If your employees occasionally drive their personal vehicles for business-related tasks, such as delivering an invoice or driving to the hardware store, you probably need non-owned auto coverage. It could provide liability protection if one of those employees were involved in an accident.
You should list all employee-owned vehicles used regularly for your business on your commercial auto policy.
Employer's non-owned coverage example:
At a work site, you realize you're short on bolts. You send your employee, Joe, to the hardware store to get more.
On his way to the store, Joe rear ends a car. The other car's bumper is damaged, and the other driver’s wrist is sprained. The resulting expenses are as follows:
- $1,500 medical bill for the other driver's wrist X-ray
- $1,000 bill to replace the other car's bumper
Since Joe was driving for work, Joe's personal auto insurance might not apply. If you were carrying non-owned coverage with a $300,000 combined single limit, the above expenses likely would be covered by your insurance.
Non-owned insurance limits
Non-owned car insurance uses limits to describe the maximum amount your insurance company will pay. These limits are automatically the same limits as those you selected for your Liability insurance, which is required in order to carry non-owned auto coverage.
Non-owned insurance is available for multiple industries, but acceptability will ultimately depend on your specific business.
Additional specialty coverages
There are several other ways to protect yourself aside from non-owned car insurance depending on the needs of your business including:
Hired Auto coverage provides liability protection when you’re driving a hired, leased, rented or borrowed vehicle.
Any Auto coverage provides liability protection for all vehicles on a policy whether they are owned, non-owned, or hired, including vehicles that you purchase during your policy even if you forget to tell your insurance company.
You can typically carry Non-Owned coverage along with Hired Auto coverage. Any Auto coverage already includes Non-Owned coverage, so these two coverages can’t be purchased together.
Call us directly or talk to your agent if you have any questions about your individual needs.