Non-owned Automobile Insurance

What Does Non-owned Automobile Insurance Mean?

Non-owned automobile insurance is a type of automobile coverage for vehicles the policyholder does not own, hire, lease, rent, or borrow. Companies often purchase this policy for employees who use their personal cars for company business. It protects the company from liability for losses incurred while an employee drives a non-owned vehicle for work-related purposes.

Insuranceopedia Explains Non-owned Automobile Insurance

Many businesses rely on employees using their personal vehicles for company tasks. For example, pizza shops and other delivery-based businesses often have employees deliver products using their own cars. If an employee causes an accident while performing company duties, the company may face a lawsuit. Without non-owned automobile insurance, such incidents could result in significant financial losses for the company. However, this type of insurance provides protection against such liabilities, safeguarding the company from potential claims.