Owning a business has a lot of expenses, and hired non owned auto insurance is probably one of them. If you don’t frequently ask your employees to run errands for you using their vehicles, you may think that the insurance is a superfluous expense. However, without it, expenses can be drastically greater should an accident occur during one of these errands. If you are sued for an auto accident, your insurance will pay for defense costs, such as police reports and fees for lawyers and witnesses, as well as other costs related to the suit. The employee’s personal auto insurance will pay for whatever medical expenses are incurred up to a certain point, and your insurance will probably pay for most of the excess costs in this area.
What isn’t covered?
Hired non owned auto insurance generally does not pay for damages occurring to the vehicle. These expenses would be covered by the employee’s own automobile insurance.
Who should purchase it?
You should consider this type of insurance if you rent cars on a regular basis or if you are a business owner for whom it may be necessary to borrow cars for business trips or have employees use their own vehicles to run errands. Hired non owned auto insurance is often less expensive than rental car insurance if you borrow a car for more than ten days in a single year.