Hired and Non-Owned Auto Insurance (HNOA)
The critical coverage gap that protects your business when employees use personal cars for work or when you rent vehicles. Most businesses need it and do not have it.
TL;DR: Hired and non-owned auto insurance (HNOA) protects your business when employees use personal vehicles for work or when you rent vehicles for business. It costs $200-$600/year and fills a critical liability gap. Without HNOA, your business has zero coverage when employees drive their own cars for errands, deliveries, or client visits.
Last updated: April 2026 · Written by the First Heritage Insurance Agency (FHIA) Commercial Insurance Team
What Is Hired and Non-Owned Auto Insurance?
HNOA covers vehicles your business uses but does not own. It fills two critical gaps in your commercial auto policy:
- Hired Auto covers vehicles you rent, lease, or borrow for business use. If an employee rents a car for a business trip and causes an accident, HNOA pays the liability claim.
- Non-Owned Auto covers employees driving their personal vehicles for work purposes. If a salesperson uses their own car to visit a client and causes an accident, your business is liable. HNOA protects you.
Why Most Businesses Need HNOA
If any employee ever uses a personal car for work -- even once -- your business is exposed. Under the legal doctrine of respondeat superior, employers are liable for employees' actions during work activities, including driving. Without HNOA, a single accident during a lunch errand or client visit could result in a lawsuit against your business with zero coverage.
Common scenarios where HNOA saves businesses:
- Employee drives their own car to a client meeting
- Sales rep uses their personal vehicle for territory coverage
- Manager rents a car for an out-of-town business trip
- Employee runs to the supply store for job materials
- Subcontractor uses their own vehicle on your job site
- Employee picks up catering for a company event
What HNOA Covers vs What It Does Not
| Covered | Not Covered |
|---|---|
| Liability for bodily injury caused by employee in personal/rented car | Damage to the employee's own vehicle (that is their personal auto policy) |
| Liability for property damage caused during business use | Vehicles you own or lease long-term (those go on your commercial auto policy) |
| Legal defense costs from covered accidents | Intentional acts or criminal activity |
| Rented/borrowed vehicles for temporary business use | Vehicles used for livery or delivery services (need commercial auto) |
HNOA vs Commercial Auto Insurance
| Feature | Commercial Auto | HNOA |
|---|---|---|
| Covers vehicles you own | Yes | No |
| Covers rented vehicles | Only if scheduled | Yes (any rental) |
| Covers employee personal cars for work | No | Yes |
| Physical damage to the vehicle | Yes (collision/comp) | No (liability only) |
| Typical cost | $1,800-$18,000/vehicle/year | $200-$600/year total |
| Required for DOT/FMCSA | Yes | No |
How Much Does HNOA Cost?
$200-$600 per year for most small businesses. HNOA is one of the cheapest and most valuable coverages available. It is typically added as an endorsement to your general liability or commercial auto policy -- not a standalone policy. The cost depends on number of employees, how frequently they drive for work, and your industry.
Do I Need HNOA If I Already Have Commercial Auto?
Yes. Your commercial auto policy only covers vehicles listed on the policy (scheduled vehicles). If an employee uses their personal car for any work activity, your commercial auto does not cover that trip. HNOA fills this specific gap. Think of it this way:
- Commercial auto = covers your business-owned vehicles
- HNOA = covers everyone else's vehicles when used for your business
- Together = complete coverage for all vehicles used in your operations
Industries That Need HNOA Most
- Consulting and professional services -- employees drive to client sites
- Real estate -- agents use personal cars for showings
- Construction contractors -- workers drive personal trucks to job sites
- Sales organizations -- reps drive territories in personal vehicles
- Nonprofits -- volunteers use personal cars for organizational activities
- Any business with 1099 contractors -- independent contractors use their own vehicles
How to Get HNOA Coverage
First Heritage Insurance Agency (FHIA) adds HNOA endorsements to your existing commercial auto or general liability policy. As an independent broker, we compare options across 50+ carriers to find the best combination of coverage and price. Most HNOA endorsements can be added same-day.
Get a quote with HNOA coverage or call (631) 659-0189.
Looking for more commercial auto coverage options? Visit our Commercial Auto Insurance hub page to explore coverage by vehicle type, industry, and location. Or request a free quote from FHIA.
Not Sure If Your Business Qualifies?
Our commercial auto specialists can review your fleet, drivers, and operations to find the right coverage at the best rate. No obligation, no pressure.
Most businesses get a quote within 24 hours
What Our Clients Say
"After getting non-renewed by our carrier, First Heritage placed our entire fleet within a week. Professional, responsive, and they actually understand the insurance needs of New York businesses. Cannot recommend them enough."
Jennifer M. - Google Review
"Got dropped by my insurance company and had to search for new insurance. Tiffany helped me beyond expectations and even after hours since my insurance was expiring the next day. Highly recommend First Heritage for anyone in a tough spot."
Murad S. - Google Review
"I have had First Heritage for over 2 and a half years. They were recommended to me when I was purchasing my house and I cannot express enough how incredible they are. Friendly, responsive, and always looking out for my best interest."
Ashley L. - Google Review
"First Heritage saved our construction company over $12,000 on our fleet policy. They found carriers that actually understood our business instead of treating us like a number. Best decision we made for our commercial auto coverage."
Mike R. - Google Review
Why Choose FHIA for Commercial Auto Insurance
We are not a call center or a quoting platform. First Heritage is an independent brokerage where your policy is personally underwritten by our founders.
Exclusive & Direct Access
No brokers involved. You work directly with our underwriting team from quote to policy.
Flexible, Common-Sense Underwriting
We look at the full picture of your business, not just a risk score. Real underwriting by real people.
Tailored for Commercial Auto Insurance
Custom coverage solutions built specifically for your operation, not cookie-cutter packages.
Faster Turnaround
We control the process from start to finish. Most quotes delivered same day, COIs within 24 hours.
Program Coverage & Capabilities
Frequently Asked Questions
What is hired and non-owned auto insurance (HNOA)?
Coverage for vehicles your business uses but does not own. "Hired" covers rented or leased vehicles used for work. "Non-owned" covers employees using their personal cars for business activities. Without HNOA, your business has zero liability coverage when employees drive their own cars for work errands, deliveries, or client visits.
How much does HNOA cost?
$200-$600 per year for most small businesses. It is typically added as an endorsement to your general liability or commercial auto policy, not a standalone policy. HNOA is one of the cheapest coverages available relative to the risk it eliminates. Cost depends on employee count, driving frequency, and industry.
Does HNOA cover damage to the employee's car?
No. HNOA is liability-only coverage. It pays for injuries and property damage your employee causes to others while driving for work. Damage to the employee's own vehicle is covered by their personal auto collision coverage. HNOA protects your business from lawsuits, not the vehicle itself.
Do I need HNOA if employees only drive their own cars occasionally?
Yes. Even one trip creates liability for your business. Under respondeat superior, employers are liable for employees' actions during work. If an employee causes an accident driving to pick up office supplies, your business can be sued. HNOA costs $200-$600/year total and eliminates this risk.
Is HNOA the same as a Drive Other Car (DOC) endorsement?
No. HNOA covers your business's liability when employees use non-owned vehicles. A DOC endorsement covers a specific individual (usually a business owner) when they drive vehicles not on their commercial policy. DOC is personal coverage for the named individual; HNOA is business coverage for the company.
Do 1099 contractors need their own insurance if I have HNOA?
Yes. HNOA may not cover independent contractors depending on your policy terms. Most insurers define "insured" as W-2 employees only. Require 1099 contractors to carry their own commercial auto and provide certificates of insurance. Your HNOA may serve as excess coverage but should not be their primary policy.