This questions gets asked in many of our client reviews, Why do I need non-owned auto coverage? First things first, what is non-owned auto. The definition of non-owned auto is as follows: Only those autos you do not own,lease hire rent or borrow. Makes sense after all it says non-owned. Here is where the coverage starts to become valuable. Non-owned includes autos owned by your employees, partners if you are in a partnership, members if you are in a limited liability company but only while used in your business or personal affairs.
So here is why the coverage can be valuable. You employee or a neighbor are coming from town and you catch them before they leave. Hey, could you pickup that hose for my tractor on your way back out here? Still no problem but on the way to the property, they have an accident and serious injuries occur. The driver only has state minimum liability and that is gone in minutes. The lawyer for the injured finds out they were bringing you a part and bring you into the suit. Why you ask? because in the definition it says in your business affairs. They were bringing you the hose so you were partly responsible for the accident in the eyes of the law possibly. Without the non-owned auto on the policy you have no coverage on the auto policy because it was not your vehicle.
Hope that clears up a questions for you. Call us at 805-238-1818 if you have more questions. Ted Hamm Insurance is more than happy to help.