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Decode a policy

Non-owned auto

Commercial coverage when employees drive their personal cars for company errands.

Educational only. PolicyPlain does not sell insurance and does not provide insurance, legal, or financial advice. Coverage rules and prices vary by state and insurer. Read our full disclaimer.

Plain definition

Non-owned auto liability covers your business when employees use vehicles the company does not own for work tasks—bank runs, client visits— and cause liability to others. It protects the company, not the employee’s personal auto policy as primary.

Why it matters

Pizza shops and nonprofits sending volunteers in personal cars need non-owned auto so a serious crash does not land solely on the driver’s minimum limits.

Example

An employee hits a pedestrian while picking up office supplies in their own car. Non-owned auto may defend the business entity.

Common misunderstanding

Non-owned auto does not maintain the employee’s personal policy or cover damage to their car.

Policy language always controls. This is educational content, not advice. See our disclaimer.