Insuranks

Hired and Non-Owned Auto Liability Insurance: Cost & Quotes From $7/mo

HNOA (hired and non-owned auto liability) insurance is necessary for businesses.  Businesses can leverage this if a rented commercial vehicle gets involved in an accident. The policy also grants protection if employees or independent contractors get into trouble while using their vehicles on the employer’s behalf. 

Hired/non-owned auto insurance ensures that financial responsibilities regarding the accident are met.  The cost of this insurance can vary based on things like the size of the business, the industry it's in, the driver's record, the policy limits, and the deductibles.

In this article, we will explore about how much HNOA insurance costs and provide estimates from companies selling it. To help businesses choose a policy wisely, we will highlight a few elements that may impact the price of HNOA insurance. Understanding the price of HNOA insurance can help you safeguard your company and control risk, regardless of whether you own a small business or a larger enterprise.

What Does Hired and None-Owed Auto Liability Cover Mean?

Hired and non-owned auto liability insurance shields companies from financial liabilities in the event of collisions involving non-owned vehicles.

When an employee leases or rents a car for work, hired auto liability coverage protects them against liability. This coverage protects the business if a worker gets into an accident while driving a rented car. This coverage will pay for injuries and losses to third parties.

Hired and non-owned auto insurance protects the company from liability when employees use their cars for work-related tasks

For instance, this coverage will pay for injuries and damages to third parties if an employee uses their vehicle to make a delivery and gets into an accident.

Notably,  hired and non-owned auto coverage only covers liability for damages or injuries caused to third parties; they do not cover damage to the rented or non-owned vehicle. So, if a company wants to protect rented or borrowed cars from physical damage, it should think about getting extra insurance.


What is Extended Non-Owned Coverage?

An extended non-owned coverage is an add-on to personal auto insurance and commercial auto insurance. This grants the policyholder auto liability and medical payments coverage when an accident happens when driving another entity’s car. 


What is Named Non-Owners Policy?

Named non-owner policy is an add-on to personal auto insurance that grants liability protection to anyone who doesn’t own a car but is driving one through a rent or lease agreement. Medical payments/personal injury protection are excluded. 


Hired and Non-Owned Auto Coverage Explained: Defining the Terms Hired Auto Liability and Non-Owned Auto Liability 

Hired auto liability and non-owned auto liability are two components included in HNOA coverage. Here’s an overview of their difference:

  • When employees rent or lease a car for work-related purposes, firms are protected by their hired auto liability insurance. This non-owner driver insurance covers the company if an employee is involved in an accident while operating a leased or rented car. For instance, the Hired Vehicle Liability policy will pay for losses to third parties if an employee leases a car to get to a business conference and causes an accident. Often, companies that frequently rent or lease automobiles for commercial purposes may obtain this type of coverage

  • Non-owner liability insurance component safeguards businesses when employees use their vehicles for work-related purposes. This insurance protects the company if an employee gets into an accident while using his or her own car for work, like making deliveries or going to meetings. For instance, the non-owned liability policy will pay for losses to third parties if an employee causes an accident while driving their vehicle for work. Businesses with employees who frequently use their vehicles for work typically obtain this coverage


The type of vehicle covered is the primary distinction between hired car liability and non-owned liability coverage. Hired auto liability protects rented or leased vehicles, whereas non-owned liability protects personal vehicles used for work.

It is crucial to remember that while both types of coverage shield the company from liability lawsuits, they do not include coverage for harm to rental or non-owned vehicles. A business should consider purchasing supplementary coverage aside from employer non-owned auto insurance if it wants to protect rented or non-owned vehicles from physical damage.

Compare Cheap Car Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!