What is extended non-owned coverage? This question is about Car Insurance

What is extended non-owned coverage?

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This question is about Car Insurance

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@WalletHub • 01/04/21 This answer was first published on 01/04/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Extended non-owned coverage is an add-on to a driver’s personal car insurance policy that extends liability and medical payments insurance to a company car. Since many personal car insurance policies exclude the use of employer-provided vehicles, this extension can help a driver avoid gaps in coverage. Having extended non-owned coverage also is important because a company car’s insurance policy may not apply when you drive the car for personal use. Extended non-owned coverage generally does not cover damage to the car itself, however.

On the other hand, drivers who need coverage for personal use of a company-owned vehicle but do not have a personal insurance policy should purchase a non-owner insurance policy. Non-owner insurance is designed for drivers who frequently use cars they do not own, so it will cover you when you use your company-owned car for non-business purposes. However, you cannot purchase non-owner coverage if you or someone in your household owns a car.

If you choose to purchase extended non-owned coverage, it will only add about $50 to your annual premium. Any family members who might drive the car should also be named on the endorsement. But if you need to get an entirely separate non-owner insurance policy, you should expect to pay between $200 and $500 annually.

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Can I insure a car that I don't own?

You can insure a car that you don’t own in most states if you can prove insurable interest. This means you have a financial stake in the vehicle and will suffer a loss if anything happens to it, which reduces the risk of you committing insurance fraud.

For example, even though you don’t fully own a vehicle that’s leased or financed, you have money invested in the car’s wellbeing. Just keep in mind that...

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What is hired and non-owned auto coverage?

Hired and non-owned auto insurance (HNOA) is liability coverage for cars that are rented by a company or cars owned by company employees and used for work. HNOA acts as standard liability coverage, meaning it covers bodily injury and property damage liability claims against employees.

Traditional liability car insurance does not cover work-related incidents, leaving employees or the company itself open to lawsuits if they cause an accident.

HNOA is not for taxi...

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