What Is Hired and Non-Owned Auto Insurance?
HNOA is coverage for a business’s liability exposure when vehicles it does not own are used for work. It generally does not insure those vehicles for physical damage.
“Hired” commonly refers to autos the business rents, leases, or borrows; “non-owned” often refers to employee-owned vehicles used on company business. The California commercial guide identifies hired and non-owned autos as possible parts of a Business Auto Policy. The exact definitions and eligibility come from the policy or endorsement, not from the shorthand label.
This coverage is usually relevant when an employee drives their own car to a work errand or a company rents a vehicle. It does not automatically replace the driver’s personal auto insurance, and it does not necessarily pay to repair the rented or employee-owned vehicle. Physical damage and liability are separate coverages.
Ask for the actual endorsement and confirm the named insured, covered uses, employees or other drivers included, limits, exclusions, and whether hired-auto physical damage is available. Check any employee reimbursement or rental procedures against those terms.
Related Coverage
Sources
- Commercial Insurance Guide. California Department of Insurance; Commercial Automobile: Coverage, Classification and Limits of Insurance; How Are Commercial Policies Rated. Accessed 2026-09-25.
- Business Vehicle Insurance. Insurance Information Institute; Will My Personal Auto Policy Cover Business Use?; What Vehicles Are Covered?; What Coverage Do I Need if Employees Drive Their Personal Vehicles for Business?; Does a Business Umbrella Cover Autos?; Do I Need a Business Auto Policy?; Be Sure the Right Insured Is on the Policy. Accessed 2026-09-25.
- Business Auto Coverage Form (CA 00 01 10 13). Insurance Services Office, Inc.; hosted by National General; Section I.A and I.C, printed pages 1–2; Section II.A.1, printed pages 2–3; Section III, printed pages 4–6. Accessed 2026-09-25.
- Non-Owned Auto Liability Insurance. Hiscox; Non-Owned Vehicle Liability Insurance Details; What Is Covered?; What Is Not Covered?; Who Is Covered; What the Policy Doesn’t Cover. Accessed 2026-09-25.
