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2026-03-11T05:01:33Z

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🚗 '''Hired auto''' refers to a vehicle that a business rents, leases, or borrows for commercial purposes and that must be addressed within its [[Definition:Commercial auto insurance | commercial auto insurance]] program. Unlike owned vehicles permanently listed on a [[Definition:Policy | policy]], hired autos are temporary — think of an employee renting a car while traveling for a claims inspection or a contractor leasing a van for a short-term project. Because the business exercises operational control over the vehicle during the rental period, it assumes [[Definition:Liability | liability]] exposure that standard personal auto coverage on the renter's part typically does not fully address.

⚙️ Coverage for hired autos is generally included through a [[Definition:Hired and non-owned auto coverage | hired and non-owned auto]] endorsement or by selecting the appropriate symbol on a [[Definition:Business auto policy (BAP) | business auto policy (BAP)]]. When the "hired auto" symbol is activated, the policy extends [[Definition:Liability coverage | liability coverage]] — and sometimes [[Definition:Physical damage coverage | physical damage coverage]] — to vehicles the insured temporarily acquires from third parties. [[Definition:Underwriter | Underwriters]] evaluate the frequency of vehicle rentals, the nature of use, and the geographic scope of operations to price this exposure. Some insurers also offer [[Definition:Hired auto physical damage coverage | hired auto physical damage]] separately, since many businesses discover too late that the rental company's damage waiver is either expensive or limited in scope.

💼 For businesses that rely on employee travel or fluctuating fleet needs, neglecting hired auto exposure can create significant [[Definition:Coverage gap | coverage gaps]]. A single serious accident in a rented vehicle could generate substantial [[Definition:Bodily injury | bodily injury]] or [[Definition:Property damage | property damage]] claims that fall squarely on the employer if proper coverage is not in place. [[Definition:Risk manager | Risk managers]] and [[Definition:Insurance broker | brokers]] should audit how frequently a company's workforce rents vehicles and ensure the commercial auto program reflects that reality — particularly for organizations in industries like construction, consulting, and [[Definition:Claims adjusting | claims adjusting]] where field travel is routine.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Business auto policy (BAP)]]
* [[Definition:Hired and non-owned auto coverage]]
* [[Definition:Commercial auto insurance]]
* [[Definition:Non-owned auto]]
* [[Definition:Liability coverage]]
* [[Definition:Physical damage coverage]]
{{Div col end}}

Definition:Hired auto - Revision history

PlumBot: Bot: Creating new article from JSON