Hired & Non-Owned Auto Liability: Do You Even Need It?

I never thought about it much, honestly.
Auto insurance that isn’t for your own car? Sounds strange at first—but let me tell you, it’s one of those things you don’t know you need until you’re knee-deep in a mess.

Okay, so here’s the deal. You got a business, yeah? Maybe it’s a team of ten. Maybe it’s just you and a guy named Mike who handles deliveries in his Toyota. Thing is, you don’t own a company car. Neither did I. Thought that meant I was safe from auto-related lawsuits. But turns out? Not quite.

Anyway, there’s this coverage called Hired and Non-Owned Auto Liability Insurance—HNOA for short (weird acronym, I know). If you or your employees ever rent cars, or use personal ones for work stuff, this coverage becomes pretty important.

What It Actually Covers (Sort Of a Big Deal)

If someone uses a rented vehicle, or their own, while running a work errand—and there’s an accident? Yeah, you might be on the hook.
See, HNOA don’t cover your car (because you don’t have one under the business), but it covers liability. Like, if someone gets hurt or their property gets damaged, and you’re responsible? That’s where it kicks in.

Happened to me once. Well, almost. One of my guys took his own car to drop off some documents. Rear-ended a Lexus. His personal insurance was about to say “nope” since it was a business errand. Thankfully, I had HNOA.

Note though: it don’t cover the car you rented or borrowed if it gets smashed up. That’s another add-on you’d need (some folks call it physical damage coverage for hired autos).

Hired vs. Non-Owned (Yeah, There’s a Difference)

Let’s break it down real quick:

• Hired = car you rented, leased, or borrowed

• Non-Owned = employee’s car used for work

The insurance industry loves their fine print, and so do courts. You gotta know what you’re covered for—before things get ugly.

Do I Really Need This?

You’d think, “I don’t run a delivery company, so this isn’t for me.”
But let me ask you: has an employee ever picked up lunch for a client in their own car? Driven to the bank? Delivered a proposal across town? If the answer’s yes (even once!), you need to listen up.

You see, if someone crashes while doing those errands? The lawsuit could land on your desk—yep, even if they were using their car.

And if your business rents a car for, say, a trade show or a jobsite visit? That counts too. Doesn’t matter if it’s once a year or once a week.

It’s Not the Same as Commercial Auto Insurance

People mix these up a lot. But they’re pretty different, so lemme clear that up.

Mine kicked in after the employee’s personal auto insurance tapped out. So it ain’t first in line—but it’s there when things get real.

Reasons I Got HNOA (and Why You Probably Should Too)

1. I got tired of hoping accidents wouldn’t happen

2. A contract with a government client required it

3. One policy = peace of mind

4. It cost me less than my cell phone bill, for real

Let’s be honest: lawsuits are expensive. So are settlements. HNOA covers the legal junk—attorney fees, court costs, and all that jazz—if your business is named in a claim.

What It Doesn’t Do (Because No Policy Covers Everything)

This ain’t no superhero cape. It has limits.

Nope—it won’t pay to fix your employee’s busted car.
Nope—it won’t cover injuries to your employee (that’s what workers’ comp is for).
And nope—it won’t help if the car was being used for personal stuff, not business.

Just being straight with you.

How Much Is This Gonna Run Me?

Price varies, but mine was around $250 a year. Seriously.

That’s the cost of a week of coffee runs or one client lunch. Totally worth it when I consider what I could lose otherwise.

Cost depends on things like:

• Type of work you do

• How often people drive for work

• Where you’re located

• Claims history (yours or the industry)

InsureDirect.com gave me a straight deal. Talked to someone there who actually explained stuff without all the jargon.

Wanna Get It? Here’s What I Did

1. Called up InsureDirect.com – They’re good folks

2. Spoke to a rep at: (800) 807-0762 ext. 602

3. Sent some basic info to: contact@insuredirect.com

4. Boom—policy done in less than a day

You can also swing by their office at 618 South Broad Street, Lansdale, PA 19446 if you’re local. They got great coffee. (No joke.)

Tips I Wish I Knew Earlier

• Keep a record of who’s driving what (and why)

• Ask for a copy of your employees’ insurance info

• Make sure they got valid licenses (obviously)

• Educate your team on when not to use their car for work

Most people assume, “Hey, I got personal car insurance, I’m covered.” Not always true. Business use can void personal policies faster than you think.

Wrap It Up: So… Do You Need It?

Look, I ain’t trying to scare you. But I’ve seen enough close calls—and heard horror stories from other business owners—to know better now. If you ever use a car that ain’t owned by your business for anything work-related…

Yes. You need it. Simple.

Got Questions?

Visit 👉 InsureDirect.com
📍 618 South Broad Street, Lansdale, PA 19446
📞 (800) 807-0762 ext. 602
📩 contact@insuredirect.com

They’ll break it down in plain English. No pressure. No fluff. Just facts.