Hired & Non-Owned Auto Insurance

Quick Answer

Hired & Non-Owned Auto Insurance

Hired & non-owned auto (HNOA) insurance protects transportation companies when employees or subcontractors drive vehicles the company doesn't own — rental vehicles, subcontracted drivers' personal cars, or affiliate fleet units dispatched under your operating authority.

What Does Hired & Non-Owned Auto Cover?

Hired auto covers vehicles you rent, lease, or borrow for business use — including rental cars used during fleet vehicle repairs. Non-owned auto covers vehicles you don't own but that are used on your behalf, such as an employee's personal car or a subcontracted driver's vehicle dispatched under your operating authority.

Why Transportation Operators Need HNOA Coverage

If you dispatch affiliate vehicles, use owner-operators, or rent vehicles during breakdowns, your primary commercial auto policy typically excludes those vehicles. Airport authorities and corporate accounts frequently require proof of HNOA coverage before approving affiliate or subcontracted drivers.

How Much HNOA Coverage Do I Need?

Most contracts and affiliate agreements require

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M in HNOA liability, matching your primary auto liability limit. Some airport and hotel contracts require $2M–$5M for affiliate dispatch arrangements. HNOA is excess over any coverage the vehicle's owner carries.

Frequently Asked Questions

Do I need hired & non-owned auto insurance if I use affiliate vehicles?

Yes. If you dispatch trips to affiliate or subcontracted vehicles you don't own, your primary auto policy won't cover them. HNOA fills that gap and is typically required by airport and corporate contracts.

Does HNOA cover a subcontracted driver's own insurance limits?

No. HNOA is excess coverage that responds after the vehicle owner's personal or commercial policy is exhausted — it doesn't replace the underlying driver's own insurance.

How much does hired & non-owned auto insurance cost?

HNOA is typically added as an endorsement for $500–$2,500 per year depending on the number of affiliate vehicles and dispatch volume, rather than priced per vehicle like owned-auto coverage.

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