Non-owned auto insurance is a special type of vehicle liability insurance that specifically covers cars being operated by a driver who does not own them. There are many instances where you might drive a car that isn’t yours, but not all of them require a special insurance policy. In many circumstances, a regular auto insurance policy is sufficient coverage. However, these are some instances where non-owned auto insurance may be necessary.
Vehicles belonging to an employer
Employers that maintain a fleet of vehicles that they require employees to use should have non-owned vehicle insurance for their drivers. Some examples of these are delivery services, taxi companies, and maid or cleaning services. Non-owned vehicle insurance covers the cars if they are damaged while being driven by an employee.
Staffing agency employees
When a staffing or employment agency supplies a contract employee from their pool of workers, the agency is often the one responsible for damage to a client vehicle that was driven by the employee. Non-owned vehicle insurance covers damage to a clients vehicle, as well as to the employee’s vehicle if he or she was operating it in the course of the work day’s duties, for example running an errand for the client.
Laws about non-owned auto insurance differ from area to area, so consult with your agent to see if your business needs a policy.