If you or one of your employees needs to rent a vehicle to complete business tasks, you may need hired auto coverage. For instance, if you run a handyman business and you rent a van to transport equipment to a job site, this type of vehicle insurance may apply to you.
Hired auto coverage is a type of insurance that helps pay for damages to third parties when you or an employee causes a covered accident while using a rented or leased vehicle for business purposes.
What is hired auto coverage used for?
Business owners can buy hired auto coverage when they or their employers need to use a vehicle not owned by the company. To get hired auto coverage, you can speak to a trusted insurance agent and ask whether your carrier offers it.
Here are some examples of when hired auto coverage may apply:
Example: You rent a vehicle to use for your catering business. You drive to deliver food for a wedding, and when you arrive, you accidentally hit and break the client’s fence. Hired auto coverage may apply to cover the client’s property damage.
Example: Your business leases a vehicle and your employee drives it for a business trip. The employee accidentally rear-ends a car. This coverage may help pay for the other vehicle’s repairs and the other driver’s injuries.
It’s important to note that hired auto coverage doesn’t apply to vehicles rented for personal use (such as a road trip) or when you borrow a vehicle from an employee. To use an employee-owned vehicle for business purposes, you may need non-owned auto insurance.
When to ask about hired auto coverage
If your business needs to rent or lease vehicles, it’s a good idea to consult with your preferred auto insurance agency and ask about hired auto coverage.
Your personal auto insurance or commercial vehicle policy may not apply to rented or leased vehicles used for business purposes. Whether this coverage is available to you depends on your insurance provider, policy, and how you plan to use the vehicle.
Key considerations
Coverage limits: Hired auto coverage can help pay for covered losses up to the limits included in your policy.
Exclusions: Hired auto coverage may exclude luxury vehicles. It doesn’t cover damages to the rented vehicle. Policies regularly exclude reckless driving or driving under the influence.
Contact Infinity Auto Insurance Agency, Inc. for more help
Does your small business need to rent or lease a vehicle to handle work tasks? An IIA agent can help you find the coverage you need. IIA works with multiple insurance companies, so you can compare coverage options and choose one that fits your needs.
To speak with a Spanish-bilingual agent about commercial auto insurance options, call 1-855-478-3705 or get an estimate with IIA’s commercial auto insurance calculator.