Hired and Non-Owned Auto Insurance protects your business whenever employees drive vehicles your company doesn’t own. This includes personal cars, rental cars, borrowed vehicles, and hired transportation used for work. Even a quick errand or a short client visit can shift auto liability to the business, which is why HNOA plays an important role in many small and midsize insurance programs.

The cost of HNOA depends on how often your team drives, where they’re traveling, and how much protection your business needs. In this guide, we explain the main factors that shape pricing, how insurers evaluate driving exposure, and how coverage limits influence cost. You’ll also learn how Vouch helps you choose the right level of protection without added friction or confusion.

Key Takeaways

• HNOA pricing is based on your company’s driving exposure, including how often employees drive and what those trips look like.
• Insurers consider industry activity, geography, claims history, and whether employees transport passengers.
• Higher limits increase premiums, but they may be required by contracts or needed to align with broader liability coverage.
• Companies with occasional driving usually pay less, while those with regular or higher risk driving pay more.

What Factors Influence the Cost of Hired and Non-Owned Auto Insurance?

HNOA pricing reflects how and where your employees drive. Insurers look at how often they travel, what types of trips they take, and the environments they operate in. They also consider the company’s industry, operational patterns, and any history of auto-related claims.

Employee Driving Habits

Insurers want a clear picture of how much driving your team does and how that affects risk. They review:

• How frequently employees drive
• How far they travel
• Whether the driving involves heavy traffic, difficult road conditions, or unfamiliar areas

More driving creates more opportunities for accidents, which can increase cost.

Frequency and Distance of Business Travel

Time on the road is one of the strongest predictors of pricing. Companies whose teams frequently visit client sites, make deliveries, or drive long distances typically pay more than businesses with light or local-only driving exposure.

Number of Employees Who May Drive

The more people who can drive for business reasons, the higher the exposure. Insurers look at how many employees run errands, attend offsite meetings, travel to events, or visit partner locations.

Industry and Operational Exposure

Some industries naturally involve more travel. For example:

• Sales teams with frequent client visits
• Field service operations
• Firms with in-person customer engagement
• Companies that regularly attend events or conferences

Businesses with minimal travel, such as many software or research teams, usually fall into lower exposure categories.

Geography and Legal Environment

Driving risks vary widely by location. Dense urban areas, regions with heavy traffic, and states with high legal severity often see more claims and larger settlements. Insurers factor in:

• Accident frequency in the region
• Local weather patterns
• Road conditions
• Litigation trends

Your pricing may shift based on where employees drive.

Claims History and Driving Record Patterns

A history of auto-related claims can influence premiums, even if the incidents occurred under personal auto policies. Insurers are looking for patterns in overall claims activity, not only accidents involving business driving.

Transporting Passengers or Clients

Carrying passengers increases risk and can lead to more severe injuries in an accident. Companies that regularly drive with clients, partners, or other non-employees often need higher limits and may pay more for coverage.

How Coverage Limits Impact the Cost of Hired and Non-Owned Auto Insurance 

Coverage limits play a major role in determining cost. Higher limits create more protection, but they also increase the insurer’s financial responsibility.

• Per occurrence limits: This is the maximum amount the insurer will pay for a single claim. Higher per occurrence limits increase premiums because they expose the insurer to larger potential losses.
• Aggregate limits: This is the total amount the policy will pay during the policy period. Higher aggregate limits generally cost more because they allow multiple claims within the same year to be covered.
• How higher limits affect pricing: Companies often increase limits as they grow, take on larger contracts, or operate in higher exposure industries. Higher limits may also be required by customers, vendors, landlords, or insurance partners.
• Umbrella or excess coverage: Some businesses layer umbrella or excess liability coverage above their HNOA limits. This creates additional protection for severe accidents and increases overall program cost.
• Contract requirements: Many agreements require specific auto liability limits. Meeting these requirements can raise costs if the required limits are higher than what the business would otherwise choose.

How Insurers Evaluate Your Company’s Driving Exposure

Insurers evaluate both the likelihood of an accident and the potential severity of any losses. They typically review:

• How often employees drive
• Whether driving is local, regional, or national
• The type of vehicles used
• Who owns the vehicles
• The purpose of each type of trip
• The presence of passengers
• Any prior claims involving employee drivers

They also look at external factors such as accident trends, road conditions, weather challenges, and local legal environments.

For example, a company with regular client visits in a high traffic city will be priced differently from a business with occasional travel in a low congestion area.

What Businesses Typically Pay More or Less?

Companies with limited driving exposure tend to see lower premiums. These businesses drive occasionally and have fewer auto-related risks. Examples include:

• Software companies
• Professional services firms
• Remote-first businesses
• Teams with minimal in-person client work

Companies with more active or frequent driving tend to see higher costs, such as:

• Organizations with field or service teams
• Companies that visit clients or vendors regularly
• Firms that transport clients or partners
• Regional sales teams
• Operations with routine local travel

Driving frequency remains the most important pricing factor. More time on the road means higher expected exposure.

How to Estimate the Right Level of Hired and Non-Owned Auto Coverage

Choosing the right limits matters as much as understanding the cost. Many companies align HNOA limits with their General Liability Insurance to create a consistent overall program. Others base the limits on contract requirements, the presence of passengers, or the potential financial impact of a severe accident.

Key considerations include:

• How often employees drive
• Whether nonemployees ride in the vehicle
• The value of your customer or partner relationships
• Your company’s asset size and risk appetite
• Requirements from contracts or landlords
• State and regional legal environments
• Growth plans that may expand driving exposure

As companies scale, they often add umbrella coverage to increase protection for larger or more complex operations.

How Vouch Helps You Get the Right Hired and Non-Owned Auto Protection

Vouch helps businesses evaluate their driving exposure, select appropriate limits, and place HNOA within a cohesive insurance program. With access to leading carriers and advisors who understand modern business operations, Vouch helps you build coverage that holds up under contract review and scales with your company.

Vouch also simplifies the experience by keeping your policies in one place. As your company grows, expands into new regions, or takes on larger clients, Vouch helps you adjust limits and update your insurance program quickly and clearly.

Get a quote with Vouch.

Frequently Asked Questions

Is HNOA expensive for companies with limited driving?

Usually not. Light or occasional driving often results in lower premiums.

Why does personal auto insurance not protect the business?

Personal auto policies may deny business use or have limits that are too low. HNOA protects the business when those gaps appear.

Do remote teams need HNOA?

Yes. Remote employees often travel for client meetings, conferences, or errands, which creates auto liability for the employer.

How often should we revisit our limits?

At least once per year, or whenever you expand operations, sign new contracts, or add employees who travel regularly.

Can HNOA be bundled with other policies?

Yes. Some companies add HNOA to their General Liability or Business Owners Policy, and Vouch helps integrate it into your broader insurance program. 

Vouch Specialty Insurance Services, LLC (CA License #6004944) is a licensed insurance producer in states where it conducts business. A complete list of state licenses is available at vouch.us/legal/licenses. Insurance products are underwritten by various insurance carriers, not by Vouch. This material is for informational purposes only and does not create a binding contract or alter policy terms. Coverage availability, terms, and conditions vary by state and are subject to underwriting review and approval.