What is Hired Autos?
Hired auto coverage protects a business when it uses vehicles it doesn't own — for example, rented cars, borrowed vehicles, or rented trucks used temporarily for operations. It helps cover physical damage and liability exposures that arise while the business is responsible for a vehicle but does not own it. This is distinct from non-owned auto coverage, which applies when employees use their personal vehicles for business tasks.
Who needs it
Organizations that regularly rent or borrow vehicles often need hired auto protection. Typical buyers include clubs and associations, event organizers, contractors who rent trucks, retailers using rental vans for deliveries, and staffing firms that place drivers. Industries with high commercial auto exposure or frequent vehicle rentals should evaluate this coverage alongside commercial liability and property coverage.
What it typically covers
Hired auto policies usually include:
- Physical damage to the rented or hired vehicle (collision and comprehensive).
- Liability for third‑party bodily injury and property damage while using the vehicle.
- Medical payments or personal injury protection in some states.
Some programs bundle hired auto with broader protections such as participant accident coverage or event liability for short‑term operations. For details about damage-only options, see Hired Auto Physical Damage Insurance at https://completemarkets.com/Hired-Auto-Physical-Damage-Insurance/Storefronts/.
Common exclusions or limitations
Typical exclusions include damage caused by drivers not approved under the rental agreement, use for unauthorized purposes (e.g., racing), wear and tear, and items not specified on the policy. Many policies limit coverage for certain vehicle types (heavy haulers, specialized equipment) or for international travel. Read endorsements closely to understand deductibles, sublimits, and whether loss-of-use or diminution in value is covered.
Factors that influence cost
Premiums and terms depend on underwriting factors such as the types of rented vehicles, driver experience and driving records, average rental duration, mileage, geographic area of operation, and the industry’s loss history. Risk management measures — driver training, vehicle inspection programs, and documented rental policies — can reduce rates. For staffing firms and temporary drivers, tailored options may be available; see Hired and Non-Owned Auto (HNOA) Insurance for Temporary Staffing at https://completemarkets.com/Temporary-Staffing-Hired-and-Non-Owned-Auto-Insurance/Storefronts/.
Proof of insurance & compliance
Renters and contractors often must show proof of insurance to rental vendors or clients. Certificates of insurance can list rented vehicles and show required limits. Some industries also request written evidence of hired auto coverage as part of contractual compliance or to satisfy client insurance requirements.
How to get a quote
To get a meaningful quote, assemble details about vehicle types, estimated rental days, driver lists, and any current loss history. If you prefer, you can ask your agent for help gathering the right information and comparing hired and non‑owned options. Specialty programs also exist; see the Hired & Non‑Owned Auto Insurance Program at https://completemarkets.com/company/cochrane-and-company/hired-and-non-owned-auto-insurance/ for examples of structured solutions.
Risk scenario: a catering company rents a van for a weekend delivery and needs hired auto physical damage and liability protection in case of an accident during the event.
Frequently Asked Questions
Does hired auto replace the rental company’s insurance?
No. Hired auto coverage supplements or replaces the rental company’s optional coverage for the business named on the policy; always compare terms before declining rental insurer options.
Is non‑owned coverage the same as hired auto?
They are related but different: non‑owned covers employee use of personal vehicles for business, while hired auto covers vehicles the business rents or hires.
Are drivers required to be added to the policy?
Insurers typically require details on regular drivers and may ask for exclusions or endorsements for high‑risk operators; underwriting varies by carrier.
Still have questions? Talk to a local insurance expert.