Short answer
Hired auto coverage protects your company when a vehicle you lease, hire, rent, or borrow causes an accident. Non-owned auto coverage protects you when a vehicle you do not own, lease, or rent is used for your business, typically an employee's own car. On ISO motor carrier and truckers forms, non-owned auto applies only to private passenger type vehicles, and an employee's own truck is treated as a hired auto.
- For trucking companies, this mostly matters for rental trucks, borrowed units, and office staff running errands in their own cars.
Hired autos
IRMI describes "hired autos" as autos the named insured leases, hires, rents, or borrows. On a trucking policy that can include a rented tractor while yours is in the shop, a short-term trailer rental, or a unit borrowed from another company.
The details matter. Long-term leased equipment, such as an owner-operator's tractor leased to your authority, is usually handled through the policy's leased auto provisions and scheduling, not a general hired auto clause. See who insures a leased owner-operator and scheduled auto vs any auto.
Non-owned autos
IRMI defines a non-owned auto as one used in connection with your business that you do not own, lease, hire, rent, or borrow. On a business auto policy, that classically means employees' personal cars used for work. On truckers and motor carrier forms, IRMI notes, the term applies only to private passenger type autos; employee-owned vehicles that are not private passenger type are classified as hired autos instead.
Typical trucking examples: a dispatcher driving to the bank, a safety manager driving to a crash scene, a mechanic picking up parts in a personal pickup. The employee's own insurance usually responds first, and your coverage protects the company if it is pulled into the claim.
When contracts ask for it
Shipper and some broker agreements list "owned, hired, and non-owned" or "any auto" as the required auto liability. If your policy only covers scheduled trucks, that can be a gap a reviewer flags. Check broker-carrier agreement requirements and shipper contract requirements against your declarations page.
Common questions
Does hired auto cover physical damage to a rented truck?
Not automatically. Hired auto liability covers your liability to others. Damage to the rented unit itself needs hired auto physical damage coverage or the rental company's damage waiver.
Is a trailer I pick up under an interchange agreement a hired auto?
Interchanged trailers are usually addressed through trailer interchange coverage. See trailer interchange vs non-owned trailer.
Do I need non-owned auto if my drivers never use personal cars?
Office staff, owners, and mechanics often do. If anyone uses a personal vehicle for company business, the exposure exists.
Sources
- IRMI glossary: hired automobile. Hired autos in ISO business auto, garage, and motor carrier forms.
- IRMI glossary: nonowned automobile. Non-owned autos; private passenger limitation in truckers and motor carrier policies.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.
Keep reading
Coverage
Primary truck liability: what it covers, what the law requires, and where it breaks
Questions
What is the difference between scheduled auto and any auto?
Questions
What is the difference between trailer interchange and non-owned trailer coverage?
Questions
Who insures a leased owner-operator?
Contracts and deadlines
A shipper wants us to sign a transportation agreement. Can our insurance meet it?