Your car insurance policy will protect you from damage caused by other drivers or pedestrians, as well as your own driving mistakes.
But what happens when someone crashes into your car when it’s parked? That’s where hired and non owned auto liability insurance comes in handy—these coverages can help pay for repairs even when your vehicle wasn’t being driven by you or one of your family members.
Here are seven benefits of hiring and non owned auto liability coverage if you own a car.
1) Protection for your business
The best way to protect your business is by hiring a company that provides hired and non owned auto liability insurance.
This will protect you from any future lawsuits, injuries, or damages that may occur.
Plus, it is one less thing for you to worry about as a business owner. When the time comes for an accident, the lawyers at this company can take care of all of the paperwork with the police department and provide expert legal counsel.
To make sure you are protected under this policy, always ask to see their certificates from state authorities before signing anything.
Make sure they have coverage in place before agreeing to work with them so that if anything does happen, your business will be safe!
2) Protection for your employees
Hired and non owned auto liability insurance offer protection for your employees. For example, if an employee is driving someone else’s car for work purposes, hired or non owned auto liability will provide coverage in the event that the employee gets into an accident with another driver who doesn’t have coverage.
This type of insurance also provides protection for non owned autos that may be used by employees in the course of their employment.
Even if you’re not paying to use a vehicle, you could still be protected from any accidents. If you’re renting a vehicle for personal use, this coverage would apply too!
3) Protection for your customers
Hired and non owned auto liability insurance is a type of liability coverage that protects your customers when your vehicle is being used for commercial purposes.
This can give you peace of mind, knowing that any damages or injuries that occur to your customers while in the vehicle are covered under an auto policy.
There’s also the option to bundle these types of policies with other types of commercial coverage, such as property damage insurance, which can help lower the total cost. and non fleet.
The latter offers similar benefits to fleet policies but can be purchased by small businesses on their own.
4) Peace of mind
You can get peace of mind by hiring a company to take care of your auto liability insurance. You won’t have to worry about what might happen if an accident happens with someone you don’t know.
Plus, the rates for non owned insurance tend to be lower than those for owned coverage. It is a good idea to call around for quotes from different companies to find the best deal.
If you are looking into hiring a car without buying one, then it is important that you check out the insurance policy before committing because some policies will not cover rented vehicles in any circumstance while others may only offer liability coverage.
In this case, you would need to make sure that the renter carries their own coverage on their vehicle.
You should also note whether or not there is a limit on how much money they pay per incident.
The cheapest rates often come with higher limits which means that they could go over faster if there is more than one driver involved in an incident or other driver has a claim against them.
Auto liability insurance is one of the most important pieces of protection for any driver. It covers the driver’s legal responsibility to others if they are at fault in a car accident.
If you own your vehicle, then your car insurance policy should provide this coverage.
However, many drivers rent or borrow vehicles that are not insured by their personal auto policy either because they don’t want to be liable for the rental or they’re borrowing someone else’s vehicle temporarily.
In these cases, there are two choices: take out an additional rental auto insurance policy or buy non owned auto liability coverage.
Taking out an additional auto insurance policy can be expensive, especially when considering the potential time period that it would cover;
plus it could cancel out any other current policies you have. The advantage of buying non owned auto liability coverage is that it will cover your legal responsibility for damages to others during those times when you are driving a rented or borrowed vehicle but it does not cover damages caused by collision or theft of the rented/borrowed vehicle.
Hired or non owned auto liability coverage is not typically required by law. However, it is a wise decision if you don’t want to be personally responsible for damage or injury that you cause in an accident.
✓) Personal Injury Protection: Paid by the person in an accident, this type of insurance pays for medical costs and lost wages up to a certain limit.
✓) Medical Payments: This covers medical bills regardless of who caused the accident, but not lost wages or pain and suffering.
✓) Uninsured/Underinsured Motorist Coverage: Pays when you’re hit by a driver without proper coverage, even if they have no assets to pay your damages with.
✓) Collision Coverage: Covers repair or replacement cost after an accident with another vehicle
✓) Comprehensive Coverage: Covers all other accidents and theft not involving another vehicle.
7) Easy to set up
Hired or non owned auto liability insurance is one of the easiest types to set up. You have the option to either pay a monthly premium with an annual deductible, or you can opt for paying a lump sum premium with no deductible.
Either way, it’s easy to find good coverage on this type of insurance. The key is making sure that your car is properly insured in case someone else damages it.
You also want to make sure you are getting collision and comprehensive coverages as well. These will take care of damage done to your vehicle by other drivers.
If you don’t purchase these optional coverages, then any accidents will be taken care of by your hired or non owned auto liability insurance policy instead.
If you do not have collision and comprehensive coverages then there would be two options available: You could claim any loss under the at fault driver’s personal injury protection (PIP) coverage or file a claim against their own personal automobile insurer if they were at fault.