What is “Hired Auto Collision” coverage intended for?

“Hired Auto Collision” coverage is specifically designed to protect drivers and companies from financial losses associated with damages to rented or hired vehicles that occur as a result of a collision. This type of coverage is particularly important for businesses that frequently use rental vehicles for their operations, ensuring that if an accident occurs, the costs of repairs or replacement for the rented vehicles will be covered.

This coverage is crucial because, without it, businesses could face significant out-of-pocket expenses in the event of an accident. It allows companies and individuals to use hired vehicles without the constant worry of financial risk stemming from collision damage.

The option regarding private use of personal vehicles pertains to personal auto insurance, which does not include rental vehicles under the same terms. Coverage for injuries to drivers typically falls under different types of insurance such as bodily injury or personal injury protection, which are not specific to hired vehicle damages. Lastly, coverage for non-collisional accidents would be part of comprehensive insurance, which deals with damages not related to accidents involving other vehicles, not specifically addressing collision events.