What is hired auto coverage in fleet insurance?

It covers vehicles your business rents or leases temporarily, extending your fleet coverage to these temporary additions.

Hired auto coverage in fleet insurance is a type of policy that provides protection for vehicles that your business does not own but uses temporarily. This typically includes cars, trucks, or vans that your business rents or leases on a short-term basis. This type of coverage ensures that these temporary vehicles are protected under the same or similar conditions to those in your existing fleet. Essentially, hired auto coverage steps in to fill any gaps in your protection when your employees are driving rented or leased vehicles for business purposes, which might not be covered under your standard fleet policy. This coverage often includes liability protection, medical payments, and sometimes even coverage for any physical damage that occurs while the vehicle is used for business activities.

Imagine your business regularly rents delivery vans during the holiday season to manage increased demand. These rented vans are not part of your company's owned fleet, but they play a crucial role in your operations during this time. With hired auto coverage, any accidents or incidents involving these rented vans while they are being used for business purposes would be covered. This means if a rented van is involved in a minor accident, your hired auto insurance would take care of the liability costs and damages, saving your business from unexpected expenses.

If your business frequently relies on rented or leased vehicles, consider discussing hired auto coverage with your insurance provider. This coverage can prevent potential financial setbacks by ensuring that temporary vehicles are insured. Always review the terms of your coverage to understand what is included, such as liability limits and whether physical damage to rented vehicles is covered, to ensure it meets your business needs. Additionally, maintain clear records of all rented vehicles and ensure your employees understand the coverage terms.