Top Reasons To Buy Hired Auto Insurance

Hired auto insurance―also known as non owned or non owner liability insurance―is a kind of car insurance coverage that protects you when you are driving a vehicle not registered in your name.

For example, if you borrow a vehicle that doesn’t belong to you and you are involved in an auto accident, your non owner liability policy will cover the repair expenses for damages done to another persons property, and for medical expenses for injuries suffered by another person.

 

Who Needs Hired Liability Insurance

You might want to consider purchasing hired liability insurance if:

• You often borrow cars for transportation purposes.

• You often rent vehicles for transportation purposes. If you rent a vehicle for more than 10 days per year, hired liability insurance is typically cheaper than rental car insurance.

• You drive a vehicle that you do not own for business purposes.

• You own a business that requires your employees to drive their own vehicles for business purposes.

 

What Non Owned Vehicle Liability Insurance Covers

Non owner liability insurance is comprised of the following:

• Property damage (PD) protection.

• Bodily Injury (BI) protection.

Property damage protection covers repair expenses for damages to another person’s property. This usually a person’s vehicle, but it can also be a mailbox, a bicycle, or even a portion of a person’s house. Bodily injury protection, on the other hand, covers medical expenses for injuries suffered by another person in the event of an accident.

 

The Cost of Hired Liability Insurance

The actual cost of hired liability insurance depends on the amount of liability insurance the policy includes, in addition to the deductible, i.e. the amount you agree to pay out of pocket in the event of an accident. You can compare hired liability insurance rates online, or by contacting the Insurance Department in your state.

 

State Liability Insurance Requirements

Your policy must meet your state's liability insurance requirements, but it is advisable to purchase more than the minimum. For example, while most states require $5,000 to $25,000 in property damage coverage, insurance professionals typically recommend carrying at least $50,000 in PD coverage. This is because property damage expenses often exceed the minimum required.

Contact your auto insurance provider directly to discuss the details of your situation, and then to determine the amount of liability insurance you need.