Non-Owned Car Insurance
Businesses sometimes need employees to use their own cars for work. But if an accident happens, your company could be held responsible. Non-owned car insurance helps cover liability costs in these situations, offering added confidence when work happens outside the office.
Progressive Commercial has decades of experience supporting small businesses as they manage real-world driving risks. You can explore your options and get an online quote in minutes, or chat with an insurance expert for help choosing non-owned car insurance that fits how you operate.
What is non-owned auto coverage?
Non-owned auto insurance extends liability coverage to your employees' vehicles when they're used occasionally for work. This can include tasks like running errands, making deliveries, or visiting clients on your business's behalf. It doesn't apply to vehicles your business owns, leases, or regularly uses. Those should be listed on your standard commercial auto insurance to ensure proper coverage.
You may be able to add hired and non-owned auto (HNOA) insurance to your commercial auto, general liability, or business owners policy (BOP). It helps cover liability costs when employees drive their own cars or when your business rents or hires a vehicle.
Are you looking for non-owner car insurance?
Non-owner car insurance provides liability coverage for people who don't own a personal vehicle. It's useful if you frequently rent cars, need proof of insurance to keep your driver's license, or want protection in case you're at fault for an accident while driving a vehicle you don't own.
Learn more about non-owner car insurance for personal auto.
What does non-owned car insurance cover?
Non-owned car insurance extends your commercial auto liability protection to your employee's vehicle. If an employee gets into an accident while running a work errand in their own car, it could help with a variety of damages, injuries, and lawsuits. More specifically, non-owned insurance covers the following third-party claims:
- Bodily injury: Pays for medical expenses along with legal costs, settlements, and judgments if the accident results in a lawsuit.
- Property damage: Covers the cost to repair or replace the other person's vehicle after an accident.
Depending on your state auto insurance requirements and policy details, coverages like uninsured/underinsured motorist, personal injury protection, and medical payments coverage may also apply to non-owned vehicles.
What doesn't non-owned auto insurance cover?
Non-owned auto insurance coverage is usually liability-only, which means it's designed to protect your business from costs related to injuries or property damage to others — not your vehicles or employees. That means it won't cover things like:
- Employee injuries: You'll need workers' compensation insurance to cover employee injuries.
- Damage to the employee's vehicle: Collision and comprehensive coverage don't apply to non-owned vehicles.
- Company vehicles: To get coverage, any vehicle owned or leased by your business should be listed on your commercial auto insurance policy.
Why do small businesses need non-owned car insurance?
Small businesses should consider non-owned car insurance when employees use their vehicles for work. Personal auto policies often exclude business use, which can leave your staff and your company exposed. The right policy could help with these common risks:
- Accidents during business errands: Liability costs for an accident can exceed a teammate's personal auto coverage, leaving your business responsible.
- Lawsuits for bodily injury or property damage: If someone outside your company is injured or their property is damaged, legal fees and settlements can add up quickly. Non-owned auto insurance could cover these costs.
- Reputation impact: Accidents involving employees on company time can hurt your image and business relationships. Having proper coverage shows that you're prepared and responsible.
Non-owned auto insurance gives businesses like yours a practical way to manage risks and keep operations running smoothly.
Who needs non-owned auto insurance?
If your employees sometimes drive their personal vehicles for work tasks, such as delivering an invoice or driving to the hardware store, non-owned auto coverage could be a good fit. The following professions can benefit from this protection:
Non-owned car insurance works for many industries, but whether you qualify depends on your specific business. If you get coverage, make sure you list all employee-owned vehicles used for work on your commercial auto policy. This helps protect you from unexpected costs, no matter what your business does.
Non-owned auto coverage example
You're at a job site and realize you're short on bolts. You ask your employee, Joe, to go to the hardware store to get more.
On the way, Joe rear-ends a car. The accident damages the other driver's bumper and sprains their wrist. The costs add up quickly:
- $1,500 for the driver's wrist X-ray
- $1,000 to replace the damaged bumper
Since Joe was driving for work, his personal auto insurance might not apply. With non-owned auto insurance coverage, your commercial policy could help close the gap and pay the expenses.
Non-owned car insurance limits
Non-owned car insurance comes with limits, which are the most your insurer will pay for a covered claim. These limits match your liability insurance policy, which you need to get non-owned auto coverage.
It's a good idea to review your coverage amount regularly to make sure it fits your business needs. Think about the size of your operations, the type of errands employees handle, and their driving history.
Additional specialty coverages
Depending on your business, you might want to consider other protections besides non-owned car insurance, such as:
Hired auto coverage
Hired auto coverage provides liability protection when you're driving a hired, leased, rented, or borrowed vehicle.
Any auto coverage
Any auto coverage provides liability protection for every vehicle on your policy, whether owned, non-owned, or hired. It also covers vehicles that you buy during your policy term, even if you forget to notify your insurer.
You can typically carry non-owned insurance along with hired auto coverage. Any auto coverage already includes non-owned protection, so you can't purchase these two protections together.
How to add non-owned car insurance to your policy
You can typically add non-owned car insurance to your commercial auto, general liability, or BOP. This step is known as the business auto endorsement process. To get started, you can get a quote online or call a Progressive Commercial expert for guidance. Here's what to expect:
- Contact your insurance agent or carrier: Your insurer can confirm which policy works best for adding non-owned coverage.
- Provide details on vehicle use: Be ready to share how often employees use personal vehicles for work and the types of tasks they handle.
- Review documentation and compliance requirements: Your insurer may ask for proof of existing liability limits or other business details to make sure your non-owned auto insurance matches your needs.
Why choose Progressive Commercial for non-owned car insurance
As the #1 commercial auto insurer in America,* we've been helping small businesses like yours find the right coverage for over 50 years. Business owners trust us to provide flexible options, competitive rates, and exceptional service. Start a quote for a commercial auto policy with non-owned auto coverage today. You can also contact our insurance experts to find the coverage you need.
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