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Non-Owned vs. Hired Auto Coverage: What Are the Differences?

Did you know that, on average, six million motor vehicle crashes occur yearly in the United States? These incidents result in at least three million people sustaining injuries. Nearly three in four collisions also cause property damage.

All that makes having auto insurance necessary if you use vehicles for your business. Without it, you can face high costs, even litigation, if you or your employees cause a car crash.

The types of car insurance you need depend on who owns the vehicles you use for your business. You may need non-owned or hired auto coverage if your company borrows or rents cars or trucks.

This guide discusses both types of coverage, what sets them apart, and which one you should get, so read on.

What Is Non-Owned Coverage?

Non-owned auto coverage is for vehicles your company doesn’t own, lease, or hire. An example is a personal car one of your employees owns and uses for your business.

Non-owned auto insurance provides liability coverage. It kicks in if the vehicle you don’t own but use for business gets involved in an accident.

For example, an employee uses their car to drive and meet your business’s clients. Along the way, they accidentally rear-ended another vehicle.

Non-owned insurance can help cover the damages sustained by the other vehicle. It can also help pay for the other driver’s medical costs.

However, your employee must exhaust the limits of their auto coverage first. Only after this will the benefits of a non-owned insurance policy kick in.

Non-owned insurance also often provides coverage for litigation costs. For example, the owner of the vehicle your employee crashed into decides to sue your business. In this case, your coverage can help pay for your company’s legal costs.

What About Hired Auto Coverage?

Does your business hire, lease, or rent cars or trucks? If so, you need a hired auto insurance policy. It can cover you or your employees who may get involved in an accident while driving such vehicles.

Suppose you’re driving a rental and crash into another person’s vehicle. This led to the other car sustaining damage or the other driver getting injured.

If you have hired auto coverage, it can pay for the other person’s medical expenses. Likewise, it can help pay for the needed repairs to the other party’s vehicle. It can also cover your company’s legal costs if the other driver sues your business.

Please note that you can only get this auto insurance for vehicles you hire, lease, or rent from a third party. You can’t do the same for those owned by employees, business partners, or family members.

What Sets the Two Apart?

The primary difference between the two has something to do with who owns the vehicles they cover.

Non-owned auto coverage is for vehicles your business uses but doesn’t own, rent, or lease. These include cars your employees own and use to perform jobs for you. The same applies to cars or trucks you borrow from family members or friends to conduct work.

Hired auto coverage is for cars or trucks your company rents or leases and uses for business. In this case, their owner is a third party, such as a vehicle rental company.

When Should You Get Which?

Most insurers bundle hired and non-owned auto (HNOA) insurance policies together. This is your best bet if your company uses rental cars and your employees also use their vehicles for work. Typically, these bundles come with discounts or lower insurance rates.

However, you can buy hired auto coverage separately from non-owned auto insurance. You can opt for this route if your business has no employees who use a car to conduct work. You can also do the same if your company only uses rental or leased vehicles.

What Do HNOA Policies Exclude?

Please be careful not to confuse non-owner car insurance with non-owned coverage. Non-owner policies are for those who don’t own a car but often drive borrowed or rented vehicles. It covers the policyholder and the car’s owner in case of an accident.

Neither non-owned nor hired auto insurance provides coverage for the policyholder. They don’t cover you, your employees, or the non-owned, rented, or leased vehicles you or your workers use.

Let’s say one of your employees crashes their car while on the way to perform a work errand. In this case, your non-owned auto coverage won’t pay for the following:

  • The property damage sustained by your employee’s car
  • Your employees’ medical bills if they got hurt in the crash

Also, remember that hired or non-owned auto policies only apply to work-related incidents. So, if you get into a crash while using a rental for personal reasons, your hired auto coverage won’t kick in. A non-owned policy won’t cover an employee who uses their car for personal reasons, either.

Hired and non-owned auto policies also have strict rules regarding negligence. They typically don’t provide coverage for crashes due to:

  • Driving while under the influence of drugs or alcohol
  • Vehicle defects caused by a lack of maintenance
  • Substandard driver record

So, if you or your employees meet any of those, expect your policy not to provide coverage.

What Policies Cover What HNOA Insurance Doesn’t?

Collision and comprehensive coverage can help cover damage to non-owned vehicles. They can help with the costs of fixing or replacing the insured car.

Worker’s compensation covers injuries sustained by employees at work. FYI, over 2 million non-fatal job injuries occurred in the U.S. in 2021 alone.

Many of those job-related injuries result from motor vehicle collisions.

Fortunately, worker’s comp applies to such incidents. As long as the injured employee was on the job while driving, it should kick in.

Never Go Without Proper, Adequate Insurance

Remember: You need non-owned insurance if your business uses a vehicle it doesn’t own, rent, or lease. Conversely, you need hired auto coverage if your company rents or leases cars or trucks.

Regardless of which you need, please purchase them ASAP. Otherwise, you’re at risk of liabilities if you or your employees get into a crash in a non-owned or hired car.

Ready for more helpful articles like this? Then check out our recent business and finance guides!

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Self Storage Units: Revolutionizing Auto Industry Storage Solutions

In the dynamic world of the automotive industry, the efficient storage of auto parts becomes a critical aspect of ensuring smooth operations. Whether you’re an auto enthusiast with a collection of vintage car parts or a mechanic with a bustling garage, space often becomes a premium. As the demand for automobiles continues to grow, the parts associated with them follow suit. Thus, the sheer volume of components, from engines to tiny screws, can be overwhelming. The answer? Leveraging self storage units. They provide an excellent solution by offering secure, accessible, and often climate-controlled spaces tailored for this purpose. By understanding the importance of such storage solutions, auto businesses and enthusiasts can optimize their space, manage their inventory better, and ensure that every component is in its prime condition, ready for use or sale.

Why Secure Storage Matters for Auto Parts

For any individual or business handling auto parts, the safety of these items is paramount. Picture this: you’ve got a rare vehicle component, perhaps for a vintage car, and its value isn’t just monetary but sentimental as well. Protecting such invaluable items becomes a top priority. In steps solutions like the Moove In Self Secure Storage, designed with the specific needs of auto parts in mind. These storage facilities offer advanced security features, ensuring that your valuable parts are safe from theft, damage, and environmental factors. 

Additionally, having a secure place means easy access whenever required, without the worry of misplacement or damage. So, whether it’s a set of classic car rims or state-of-the-art engine components, knowing they’re in a trusted facility brings peace of mind. In the auto world, where precision and quality reign supreme, the assurance of safety provided by reliable storage solutions can make all the difference in operations, sales, and personal projects.

The Benefits of Using Storage for Automotive Needs

The automotive industry is vast, with numerous facets from manufacturing to repairs. For those deeply involved, be it through business or as an enthusiast, the advantages of utilizing self-storage for automotive needs are manifold. 

Let’s delve into some pivotal reasons why investing in a storage unit can be a game-changer:

  • Organization: Maintain an uncluttered workspace by storing lesser-used parts or tools.
  • Preservation: Protect vintage or high-value parts from harmful environmental conditions.
  • Flexibility: Easily scale up or down based on inventory needs without committing to long-term real estate.
  • Accessibility: Benefit from 24/7 access to parts and tools, ensuring operations aren’t hampered.
  • Security: Enhanced surveillance and restricted access ensure your automotive assets remain safe.

Between these points, it becomes evident that self-storage isn’t just about extra space; it’s about enhancing operational efficiency and safeguarding valuable assets. According to a report by the U.S. Department of Commerce, the automotive industry is a significant contributor to the nation’s economy. 

With such high stakes, businesses and individuals alike need to implement best practices. Incorporating secure storage facilities into these practices provides not only practicality but an additional layer of professionalism, reinforcing the industry’s commitment to quality and reliability.

Maximizing Storage for Auto Business Expansion

In the realm of automotive business, growth is often synonymous with increasing inventory, parts, tools, and sometimes even vehicles. This accumulation can quickly result in a cluttered workspace, leading to inefficiencies and potential hazards. The ingenious solution? Turning to self-storage units to offload excess. By transferring surplus items into a storage facility, businesses can reclaim essential workspace, optimize operations, and drive productivity.

Furthermore, for businesses in high-rent areas, renting or buying larger premises can be prohibitively expensive. In such situations, storage units offer a cost-effective solution. Not just a space to dump excess inventory, these units can be thought of as auxiliary extensions of the main business. They allow businesses to scale operations without making heavy real estate investments.

In essence, a storage unit isn’t just a space—it’s a strategic tool. By embracing this approach, automotive businesses can experience streamlined operations, better inventory management, and the flexibility to expand without unnecessary overheads. In a fiercely competitive market, these advantages can provide the edge that sets a business apart from its counterparts.

Strategic Benefits of Storage Units in Automotive Ventures

As the automotive industry evolves, businesses are constantly seeking ways to gain a competitive edge. Leveraging storage units, especially for those in the auto industry, can result in several strategic benefits:

  1. Inventory Management: Store excess inventory or seasonal items, allowing for a more organized workspace and efficient stock rotation.
  2. Document Storage: Archive important documents, schematics, or client records in a secure location, ensuring easy retrieval and compliance with retention requirements.
  3. Vehicle Storage: Some units are large enough to store vehicles, be it unsold inventory or vehicles under restoration.

Incorporating self-storage units as a part of the operational strategy can drive growth and sustainability for automotive businesses. Notably, the U.S. Small Business Administration often underscores the importance of efficient space utilization as a key determinant of business success. Embracing this strategic approach not only aids in better space utilization but also enhances operational flexibility, positioning businesses for long-term success in the ever-dynamic automotive landscape.

The Interplay Between Quality Parts and Storage Solutions

In the auto industry, the quality of parts is paramount, especially when dealing with repairs after accidents. Using high-quality painted auto parts can significantly elevate the overall appearance and function of a vehicle. Yet, beyond the immediate need, businesses need to think about storage solutions for these premium components. Proper storage ensures the maintenance of the parts’ quality and longevity. 

Ambient factors like temperature, humidity, and exposure to elements can adversely affect the paint and material of auto parts. By choosing a self storage solution, businesses can mitigate these risks, preserving the integrity of the components. This dual focus on quality parts and proper storage guarantees optimal results for businesses and satisfaction for their clientele, fostering trust and enhancing brand reputation in the competitive automotive market.

A Forward-Thinking Approach to Auto Storage

As the auto industry evolves, the methods employed for storage must advance in tandem. Ensuring that valuable parts, especially those critical for repairs, are kept in pristine condition is not a mere afterthought—it’s a necessity. Employing the right self storage solutions safeguards not just the material investment but also a business’s reputation. For those in the automotive sector, committing to such storage measures is a step toward future-proofing operations and meeting consumer expectations head-on.