Non-owned auto insurance is a type of liability coverage that provides protection for individuals or businesses who have a risk of being sued in the event of an accident involving a vehicle they don’t own. This coverage is typically purchased by businesses that have employees who drive their personal vehicles for work-related activities, such as running errands or attending meetings.
While most personal auto insurance policies provide coverage for the policyholder and their vehicle, they generally don’t cover non-owned vehicles. This means that if your employee gets into an accident while driving their personal car for work-related purposes, they may not be covered by their personal auto insurance policy. In this case, non-owned auto insurance would provide liability coverage for the business if they are named in a lawsuit.
Non-owned auto insurance can also be beneficial for individuals who frequently rent or borrow vehicles for personal use. For example, if you rent a car while on vacation and get into an accident, your personal auto insurance policy may not provide coverage for the damage you caused to the rental car. Non-owned auto insurance can provide coverage for this scenario.
It’s important to note that non-owned auto insurance only covers liability. It does not provide coverage for physical damage to the vehicle or injuries sustained by the driver or passengers. For this reason, it’s important to always read and understand the terms and limitations of any insurance policy before purchasing it.
Non-owned auto insurance is an important coverage to consider for businesses and individuals who have a risk of being involved in accidents while driving a vehicle they don’t own. By having this coverage, you can protect yourself and your business from potentially costly legal fees and damages. Contact an insurance professional today to learn more about non-owned auto insurance and how it can benefit you.