Hired & non-owned auto: the gap most businesses miss
When an employee runs a work errand in their own car and hits someone, YOUR business gets sued — and neither their personal policy (insufficient limits) nor your commercial auto (doesn't cover unlisted vehicles) fully responds. Hired & non-owned auto (HNOA) coverage costs a few hundred dollars a year and closes that gap. Any business with employees driving personal cars for work needs it.
- • Pull MVRs annually — one bad driver can reprice the whole fleet.
- • Telematics programs now cut 5–15% for clean fleet data.
- • Any vehicle over 10,001 lbs GVW in interstate commerce triggers DOT filing requirements.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
FAQ
How much is commercial auto insurance per vehicle?
Cars and pickups used for sales/service: $1,000–1,500/year. Contractor vans: $1,400–2,200. Box trucks: $3,500–8,000. For-hire delivery and long-radius operations price highest. $1M liability is the de facto commercial standard.
Can I use personal auto insurance for my business vehicle?
Risky. Personal policies exclude many business uses — delivery, transporting tools/goods for pay, and often any regular business driving. A claim can be denied at the worst possible moment. A business-use endorsement or commercial policy is the correct fix.
What is hired and non-owned auto coverage?
Liability coverage for vehicles your business uses but doesn't own — employees' personal cars on errands, and rented vehicles. It's cheap (often $200–600/year) and covers a gap that produces some of the most common uncovered business claims.
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