Understanding Washington Hired and Non-Owned Auto Insurance Requirements

What Makes Washington's Hired and Non-Owned Auto Coverage Unique

Washington state requires separate insurance for vehicles you rent, lease, or borrow for business purposes, distinct from personal auto policies. The law mandates a minimum of $25,000 bodily injury per person, $50,000 per accident, and $10,000 property damage, but many employers opt for higher limits to protect against larger liability claims.

Hired Auto Insurance Explained

Hired auto insurance covers cars, trucks, or vans that a company rents or leases for a specific job. In Washington, the policy must be written on the hiring entity's name and list each vehicle by VIN. Coverage typically includes liability, physical damage, and uninsured motorist protection. The key difference from standard commercial policies is that the insurer treats each rental as a temporary asset, so premiums are calculated per vehicle and rental period.

Non-Owned Auto Insurance Overview

Non-owned auto insurance protects a business when employees use their personal vehicles for work duties, such as sales calls or deliveries. Washington law requires that the employer's policy extend at least the state‑mandated liability limits. This coverage fills gaps where personal policies may exclude business use, ensuring the company remains liable for injuries or property damage caused by an employee's vehicle.

Key Policy Features and Options

Both hired and non‑owned policies can be customized:

• Liability limits: Increase beyond state minimums to match risk exposure.
• Physical damage: Collision and comprehensive coverage for rented equipment.
• Medical payments: Fixed amounts per person for on‑the‑spot medical expenses.
• Deductibles: Adjustable to lower premium costs.

Compliance Checklist for Washington Employers

To stay compliant, businesses should verify the following:

• Certificates of insurance list the hiring entity as the named insured.
• Policy limits meet or exceed the state minimums.
• Non‑owned coverage is attached to the employer's general liability or purchased as a stand‑alone policy.
• All drivers are listed on the non‑owned policy or covered under a blanket endorsement.

Comparative Table of Coverage Elements