non owned automobile insurance

Are you running a business which requires the use of vehicles to transport goods or people? Many businesses big and small need to drive something around, and even if it’s only for a short distance, there is always a risk of an accident occurring. Even the safest drivers can make a mistake once in a while. This is why you should look into acquiring automobile insurance.

However, you may notice that there are a few different types of auto coverage, but don’t get discouraged! Once you understand the basic policies and the separate reasons they exist, it’ll all make sense. This article will explain the two opposite programs: commercial and non owned automobile insurance.

Commercial Auto Insurance

As the name describes, this type of policy covers commercially owned vehicles. This is also what is usually included in general auto insurance, as most programs are limited to what is owned by the policyholder. If you plan on using company cars, this is the type of insurance you want.

Non-Owned Auto Insurance

Contrariwise, non owned automobile insurance is specifically made for businesses needing to cover the cars of the employees. Businesses, especially smaller ones, often allow the employees to drive their own personal vehicles for basic transportation. If an accident happens while doing work for your company, you’ll be responsible for the insurance. Similarly, hired automobile insurance is required for rented vehicles.