How much does hired and non-owned auto insurance cost?

Because vehicles used for business purposes have higher liabilities, hired and non-owned auto insurance tends to be more expensive than your personal auto policy. It usually costs about the same as commercial auto insurance.

TechInsurance does not have exact policy figures for our clients' hired and non-owned auto insurance policies, but you can use commercial auto insurance premiums for reference.

The average cost of commercial auto insurance is $245 per month. We calculate our figures using the average cost of policies sold by leading insurance companies to TechInsurance's small business customers.

The cost of your HNOA policy depends on the vehicles' value, how often they are driven, and the amount of coverage you choose.

Hired and non-owned auto insurance protects hired vehicles, such as rental cars, leased automobiles, and personal vehicles used for business purposes. It covers accident costs, such as property damage liability, bodily injury liability, attorney fees, and other legal defense costs.

HNOA can be added as an endorsement to your general liability insurance policy or your business owner's policy (BOP).

Hired and non-owned auto liability coverage protects your personal, leased, and rented vehicles that you use for business purposes.

Your insurance providers will look at several factors when determining your HNOA insurance rates:

• Policy limits
• Industry
• Number of vehicles
• Type of vehicles
• Location
• Claims history
• Employees' driving records and demographics
• Driving frequency
• Deductible

If you want liability protection that covers a wide range of risks (e.g. property damage, medical bills, bodily injury, legal expenses, etc.), then you will have to pay for a more expensive commercial auto policy. High coverage limits cost more than basic coverage.

Among TechInsurance small business customers, the average limit is $1 million for auto insurance. Policyholders with a large fleet of high-value vehicles might choose higher limits to cover potentially higher claims.

If you work in an industry that requires you to be on the road a lot or face higher risks, you'll likely have to pay more for hired and non-owned vehicle coverage.

As an example, you will probably need to pay more to insure vehicles that are used to transport heavy machinery as a general contractor than vehicles used to go back and forth for appointments as a consultant.

Generally speaking, delivery, construction, and courier services pay significantly more than low-risk office-based workers or consulting professionals.

It's simple: The more vehicles you own or rent, the more opportunities there are for a car accident to occur.

Even if you are an independent contractor or sole proprietor with one vehicle, it's still a good idea to carry hired auto coverage to protect yourself from the high costs associated with accidents, such as medical expenses from bodily injuries.

Without it, you will be responsible for paying for medical payments and other costs out of pocket, as your personal auto insurance likely won't cover business-related driving incidents.

The type of vehicle you and your employees drive will impact the cost of HNOA coverage.

Higher-value vehicles (e.g., a luxury personal car or a rented truck) will have a higher premium than lower-value vehicles.

Insurance companies also consider how much damage your car, van, or truck could cause in an accident.

The city or state where your business operates can impact your auto insurance coverage costs. State laws and local regulations can determine the amount of coverage your business needs, which also impacts cost.

Areas with a higher population density often bring greater risk of vehicle accidents, physical damage, and other incidents, which can lead to costly legal fees and repair costs.

For example, a New York small business will likely pay higher rates than an Oklahoma business for the same liability insurance.

Businesses in states with fewer regulations or overall lower claim activity often benefit from more affordable HNOA rates.

Any insurance claims you’ve made in the past on your HNOA insurance policy will likely result in higher premiums in the future.

The fewer claims your business has made, the lower your premiums will be.

Your employees' driving records will impact your cost of hired and non-owned auto insurance. An employee with a history of collisions and speeding tickets can mean higher premiums.

In addition, insurance providers also consider your employees' demographics. Younger drivers with less experience may be more costly than older, more experienced drivers.

How often you and your employees drive can affect your overall insurance coverage rates. This includes how much you spend annually on vehicle rentals, which also impacts your HNOA costs.

Longer distances and more frequent driving can increase rates compared to businesses that drive only minimally. An increase in projected driving frequency and rental spending can increase your premiums.

Policies with high deductibles cost less, but you’ll have to pay that amount before you can collect on a claim.

There are things you can do to keep your HNOA insurance policy costs low.

Some strategies include:

Premiums can vary widely between insurers, so it pays to get and compare quotes from TechInsurance's top insurance providers.

Evaluating insurance options helps ensure you get the best protection at a competitive price.

You can usually pay your premium in monthly or annual installments. While paying monthly premiums may be tempting, consider paying the full premium instead. Many insurers offer discounts for businesses that pay this way.

Choosing a higher deductible is an easy way to save on your premium, but make sure to choose a deductible you can still afford. If you can’t pay your deductible, you won't be able to collect on a claim.

TechInsurance is a trusted insurance expert for small businesses, including contractors and consultants, with extensive knowledge of the IT sector. We help business owners compare quotes from top-rated insurance carriers, buy policies based on your business needs, and manage coverage online.

By completing TechInsurance's easy online application today, you can compare free quotes for HNOA insurance and other types of liability coverages from top-rated U.S. carriers. TechInsurance insurance agents are available to help answer any questions you may have.

Once you find the right policies for your small business, you can begin insurance coverage in less than 24 hours and get a certificate of insurance for your small business.

Insurance premiums vary based on the policies a business buys. View our small business insurance cost overview or find out the average costs for other common types of business insurance.