Indiana Named Operator Auto Insurance Policy: Key Points to Know

​ For drivers in the state of Indiana that need to buy auto insurance but do not own a vehicle, you're going to need to take out what is called a Named Operator Auto Insurance policy (a.k.a. non-owners policy). There are three primary reasons why someone who does not own a vehicle would want or need to carry liability auto insurance:

• Your employer requires you to carry personal auto insurance.

• Your license is suspended and you need either an SR50 or an SR22 filing attached onto your auto insurance to get your driver’s license reinstated.

• You may just want secondary coverage because you borrow vehicles from friends and neighbors on occasion.  If the owner of the vehicle is not carrying liability auto insurance on their vehicle like they're supposed to be carrying, this will cover you as far as state minimum liability laws are concerned. The coverage on a named operator policy is lousy (more about that later), but at least you will be driving legally.

What a named operator policy covers:

• A named operator policy offers you state minimum liability coverage on any vehicle that you borrow, as long as the vehicle doesn't belong to you or someone in your household.

• A named operator policy will satisfy state filing requirements for drivers who need an SR50 or an SR22 filing to reinstate their driver’s license.

• A named operator policy is secondary auto insurance coverage. If you are to borrow someone's car and cause an accident, the primary insurance coverage will be the auto insurance policy of the person you borrowed the car from. However, as you may be aware, one in every six drivers go without auto insurance. If it happens to be the case with a car that you borrow, a named operator policy would kick in as secondary coverage to cover your ass as far as state minimum liability is concerned.

• All named operator policies will offer you at least state minimum liability coverage, which in Indiana is 25/50/10. Some companies will offer higher levels than that. And many named operator policies will offer medical payments coverage and uninsured motorist bodily injury coverage as well.

What a named operator policy does NOT cover:

• There is no coverage offered whatsoever on any vehicle that you own or someone in your household owns. You need a regular auto insurance policy for that. A Named Operator policy won’t work.

• There is no coverage while driving vehicles being used for business/commercial purposes.

• A named operator policy doesn't offer comprehensive or collision coverage. This means that there's no coverage whatsoever on the vehicle that you're borrowing. The only way to put coverage on a vehicle you're driving is for the owner of the vehicle to have comprehensive and collision coverage on a regular auto insurance policy.

Named operator policy and state filings (SR22 & SR50)

     In the state of Indiana, for drivers that need an SR22 or SR50 filing, both of these can be easily attached onto a named operator policy.

Substitution factor


     You will find that most auto insurance companies do not offer SR50 filings. The state of Indiana is the only state that has SR50 filings. But the SR50 filings are slowly being phased out…. Soon, Indiana will only have SR22 filings… But the good news is that you can substitute an SR22 filing in place of it. However, this substitution does not work in reverse. If you need an SR22 filing, you have to go with an SR22. You cannot substitute an SR50 for it because an SR22 has a higher standard than an SR50. So the substitution only works one way. For most of you that's not going to matter anyways because just about all high-risk auto insurance companies only offer the SR22 filing.






Buying a named operator policy now and buying a vehicle later on.


    This situation comes up quite often. You need to buy auto insurance now but don't own a vehicle, but you plan on buying a vehicle real soon. I've had this happen quite often with many of my customers. The good news is that it's a real easy thing to take care of. All it takes is a five minute phone call to your agent. Just about any auto insurance company that offers named operator policies will allow you to convert your named operator policy to a regular auto insurance policy simply by adding a vehicle to it. Your policy number doesn't change, your SR22 or SR50 status doesn't change. The only thing that changes is the coverage and the premium, because now you're insuring a vehicle.




Having two separate auto insurance policies.


     One option that many drivers choose is to carry two separate auto insurance policies: a regular auto insurance policy to insure their vehicle(s) and a named operator policy to satisfy their SR22/SR50 requirement.

For a small percentage of people this is a good idea. Especially those who have a good to excellent credit rating, own their home, and have their auto insurance policy bundled with their homeowners insurance policy. But for just about anyone else, it comes out cheaper to combine everything onto one policy.



Finding the best rate.


Here is where it can get tricky. Many auto insurance companies do not even offer named operator policies. So you may have to look a little deeper down the list to find the right company for you. Your best bet for finding the best rate would be to contact an independent agent who specializes in high-risk auto insurance. It just so happens that high risk companies usually end up offering the best rates on named operator policies. Regardless of your driving record.



Summary:




For some people a named operator policy is a good idea. For others it may not work for you. I hope that this article will at least give you enough information to where you can make that determination for yourself. If you have any other questions, feel free to give me a call or drop me an email and I'll be happy to answer any questions you have. If you would like a quote for a named operator policy click on the link below and I will find you the company with the lowest rate.



Get a Named Operator Auto Insurance Quote with Lyles Insurance

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Related Blog Articles:

Video: Guide to getting Indiana SR22 Non-owner SR22 Quotes

​Video: Basics of a Named Operator Policy

Video: Named Operator Auto Insurance with an SR22 Filing

Video: Buyer's Guide: Indiana SR50 Auto Insurance

What's the difference between an Indiana SR50 and an SR22 auto insurance filing?

The difference between an Indiana SR50 and an SR22 auto insurance filing?