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How to Buy the Right Hired Auto Coverage Insurance for your Needs?

How to Buy the Right Hired Auto Coverage Insurance for your Needs?

Rental vehicles are used by many businesses for their routine operations. For the sake of safety, every business should ensure they have proper hired auto coverage insurance under commercial auto policy. There are many sub categories associated with this insurance, as it is with almost every other insurance. You must choose the one which suite you and your needs the best. The policy must neither be too expensive, covering things you would never need, nor should it be uselessly cheap.

What is Hired Auto Coverage Insurance?

Hired autos are defined clearly by the standard ISO Business Auto Policy. It includes all those autos you lease, rent, hire or borrow. Thus, any vehicle leased, rented, hired or borrowed will be insured under hired auto coverage insurance. The policy will be bought by person or enterprise listed in declarations.

There are certain covered auto designation symbols that appear in commercial auto policy declarations next to liability coverage. The hired auto coverage insurance comes into effect for symbol 1 (any auto) or symbol 8 (hired autos). This insurance applies to you or anyone who is driving the hired auto with your permission. The coverage stands regardless of whether you were driving or not; when the accident occurs.

Hired auto coverage insurance is extremely necessary for you if you hire autos on a regular basis. This is because liability for an auto accident, whether at you own hands or your employees, still falls upon you. This policy will provide coverage to save you from that liability.

What are Auto Rental Agreements?

The rental agency asks a rental contract to be signed when you rent an auto from them. The contract shifts the burden of liability from accidents, injury, property damage onto your shoulders. Auto rental agreements are designed specifically so the rental firms themselves will not be sued. A hired auto coverage insurance is the best policy to provide you protection from such burden.

In What Circumstances Does Excess Coverage Activate?

Hired auto insurance applies on an excess basis. Meaning, it only activates when any other collectible insurance has been exhausted. The rule regarding excess coverage for hired autos has one exception.  Meanwhile, a trailer you have hired and attached to an auto you own is covered on a primary basis.

What is the Extent of Physical Damage Coverage in Hired Auto Coverage Insurance?

You can elect to insure hired autos for physical damage under Comprehensive or Collision coverage. Further, hired autos are covered for physical damage under symbol 8. A deductible typically applies to it. Moreover, if the auto is damaged and being repaired, the rental agency might sue you for lost business. the Loss of Use clause is necessary under such circumstances.

Coverage for Vehicles Rented in Employee’s Name

If an employee rents an auto in your name, or your company’s name, the liability will automatically fall unto you. Moreover, if the employee rents under their own name under the renter’s agreement, the liability will fall to him or her. Under most hired auto insurance policies, employees are not insureds while driving non-owned autos. Fortunately, you can ensure employees who rent autos in their own name under an endorsement called Employee-Hired Auto.

Coverage for Leased Autos

Automobiles rented for six months or more are usually referred to as leased autos. Moreover, leased autos are typically added to the policy via an endorsement. They are insured for liability and physical damage in the same manner as owned autos.

Best Hired Auto Insurance Firm

SG Financial Inc. is best in the market to provide with a diverse and tailor cut hired auto coverage insurance. However, we can ensure that your policy has all the endorsements that are suitable to your particular needs. we do not add redundant endorsements that will remain useless to you, except increasing the money spent.

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