03/03/2025
Non-Owned Auto Insurance, Driving Risk and Which Insurance Fixes Your Employee’s Car
Non-Owned auto liability insurance is designed to protect an insured entity for the risk of having employees drive their own vehicles, or a client’s vehicle, on the job.
Frequently Asked Questions:
What is on-the-job driving?
- Driving a client, driving on behalf of a client and driving from one client’s home to another are all considered on-the-job driving.
- The commute – from home to the first client’s house or from home to office, and vice versa – is not considered on-the-job.
If a caregiver is driving their own car, and is in an accident on-the-job, what insurance fixes the car?
- The primary auto policy that is in place on the vehicle being driven is always the first in line for liability, AND IS THE ONLY POLICY THAT WILL FIX THE EMPLOYEE’S CAR.
If a caregiver is driving their own car, and is in an accident on-the-job, what insurance policies cover the liability?
- First in line is the policy on the vehicle being driven. After that policy is exhausted, the non-owned auto liability policy defends and indemnifies the named insured up to the policy limit, typically $1,000,000.
If a caregiver is driving the client’s car, does the client need to add the caregiver as a named driver on their auto insurance policy?
- It depends. If the caregiver is living with the client and driving regularly, then yes. If the caregiver drives the car once in a while, and does not live with the client, then no. There is a mile of gray area between those two, so use best judgement.
If a caregiver is driving the client’s car, and is in an accident on-the-job, what insurance fixes the car?
- The primary auto policy that is in place on the vehicle being driven is always the first in line for liability, AND IS THE ONLY POLICY THAT WILL FIX THE CLIENT’S CAR.
If a caregiver is driving the client’s car, and is in an accident on-the-job, what insurance policies cover the liability?
- First in line is the policy on the vehicle being driven. After that policy is exhausted, the non-owned auto liability policy defends and indemnifies the named insured up to the policy limit, typically $1,000,000.
What if a caregiver does not own a car?
- The definition of a non-owned auto is any auto not owned by the named insured that is used for business purpose. This could include any vehicle used by the caregiver – their mom’s car, a friend’s car, the neighbor’s car – from a coverage standpoint it would not matter.
- A rented car is a bit different. The full name of coverage is ‘Hired and Non-Owned Auto’. A hired auto is an auto that is rented for business purpose. As long as your policy says ‘Hired & Non-Owned Auto’ a rented car would be covered the same as a non-owned auto.
What are the requirements for non-owned auto coverage?
- Most insurance companies require a motor vehicle record check upon hire and a driving standard of no more than two moving violations in the past three years, and no DUI/DWI/Reckless convictions in the past seven years.
Are there any waiver for clients and caregivers to sign with regard to driving?
- We have transportation waivers available on our resources page www.homehealthins.com/
resources-free
Home Care Liability Coverage Bonding & Work Comp Fast & Easy. The Solutions Group Specializes in Liability & Work Comp for Home Care.
