What is Non-Owned Auto Insurance?

Non-owned auto insurance, also known as hired auto insurance, is a type of coverage that provides liability protection for vehicles that are not owned by the policyholder. This type of insurance is important for businesses that allow their employees to use their own vehicles for company business or use a rental car while travelling. Non-owned auto insurance is usually an add-on to a business auto policy or a commercial general liability policy, and it covers all types of motor vehicles, including cars, trucks, vans and motorcycles.

When an employee of a business uses their own vehicle for company business, they may be held personally liable for any damages that occur as a result of their actions. Non-owned auto insurance helps protect the employee from this liability by covering the cost of any damage that is caused by the employee while operating the vehicle. This coverage can also be extended to other drivers, such as family members or friends, who may be driving the employee’s vehicle for company business.

In addition to providing liability coverage, non-owned auto insurance may also cover the cost of any physical damage that is done to the vehicle. This type of coverage is typically limited to an amount that is equal to the actual cash value of the vehicle. This means that if the vehicle is totaled in an accident, the policyholder would only be able to collect up to the actual cash value of the vehicle.

Non-Owned Auto Insurance in New York

Non-owned auto insurance is required by law in the state of New York. Any business that allows employees to use their own vehicles for company business must carry this type of coverage in order to protect their employees from personal liability. Non-owned auto insurance is also required for businesses that rent vehicles for company business. This coverage is typically included in the cost of the rental and is required by law in the state of New York.

The minimum amount of coverage required for non-owned auto insurance in New York is $25,000 per person and $50,000 per occurrence. This means that the policyholder would be covered up to $25,000 per person and $50,000 per occurrence in the event of an accident. This coverage is usually included in a business auto policy or a commercial general liability policy.

In Summary

Non-owned auto insurance is an important type of coverage for businesses that allow their employees to use their own vehicles for company business or use a rental car while travelling. This type of coverage provides liability protection for individuals who are using the vehicles for company business and can also provide coverage for physical damages to the vehicle. Non-owned auto insurance is required by law in the state of New York and the minimum required coverage is $25,000 per person and $50,000 per occurrence.