Business Insurance
Hired and Non-Owned Auto Insurance
Hired and non-owned auto (HNOA) coverage protects a business from liability claims when employees use their personal or rented vehicles for company business.
Last reviewed: May 2026 · Editorial methodology
Definition
Hired and non-owned auto insurance (HNOA) covers the business's legal liability — not physical damage to the vehicle — when an employee causes an accident while driving a personal or rented vehicle on company business. It fills a critical gap because personal auto policies often exclude coverage when the vehicle is being used for work, leaving the employer exposed to vicarious liability. Small businesses that don't own any vehicles but send staff on errands can add HNOA to their general liability policy for as little as $150–$500/year. Companies with dozens of employees regularly using personal cars for client visits or deliveries may pay $1,000–$5,000/year for standalone HNOA coverage. HNOA does not pay for damage to the employee's personal vehicle — that remains under their personal policy's collision and comprehensive coverage. Businesses should also have a formal vehicle use policy that prohibits employees with poor driving records from using personal vehicles for company purposes, as HNOA underwriters can audit driver histories.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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