Non-Owned & Hired Automobile

What Is Covered

Non-Owned and Hired automobiles are included for liability coverage automatically.  Hired Automobile Physical Damage coverage is provided subject to the policy deductibles.


Hired Autos:  Autos you lease, hire, rent or borrow; except autos from your employees and members.   For example, vehicles you rent from Avis, Hertz, etc.  When you are renting an automobile on behalf of the Sorority, there is no need for you to purchase the physical damage coverage for the automobile from the rental car company. 


Non-owned Autos:  Autos you do not own, lease, hire, rent or borrow that are used in connection with your organization.  This includes autos owned by your employees and members but only while used in your organization.


Provides coverage for sums you legally must pay as damages because of bodily injury or property damage caused by an accident and resulting from the use of a covered auto. 


It is important to note that the Hired Automobile Physical Damage coverage extends to direct damage or theft of a rented automobile and operates for the benefit of the insured, which is the fraternity/sorority.  Automobile rental agreements, therefore, should always be executed in the name of the fraternity/sorority, rather than an individual's name.


Any Named Insured using a non-owned or hired auto is an insured, except:


  1. The owner or anyone else from whom you hire or borrow a covered auto.
  2. Your employee if the covered auto is owned by that employee or a member of his/her household.
  3. Someone using a covered auto while he/she is working in the business of selling, servicing, repairing, parking or storing autos.


Individuals who use their own vehicles on behalf of the fraternity/sorority must look to their own automobile insurance for protection should they be involved in an automobile accident.


Non-owned Automobile Liability: Trends

Designated Driver/Sober Sis Programs

We cannot support designated driver programs unless they are held in conjunction with official fraternity/sorority events.  We cannot support Sober Sis programs that entail chapter members signing up for random Friday and Saturday nights to pick-up other chapter members who have been drinking.  Not only does this pose significant risks to the fraternity/sorority from a liability standpoint, but it also exposes the chapter members who are acting as the designated driver to liability (because, as mentioned above, a chapter member involved in an accident in their own personal vehicle must rely on their personal automobile insurance).  Please refer to the claim examples in the Appendix and our Department Position Paper on the topic for more information.