Hello! I'm Dan Lyles with Lyles Insurance. And in this video, we're going to help drivers have a better understanding, for those who need a named operator auto insurance policy with an SR22 filing attached to it.
First, what is a named operator policy? A named operator policy (it's also known as a non-owners policy) is a special type of auto insurance for drivers who need to carry personal
liability auto insurance, but they don't have a vehicle or have a vehicle registered in their name.
A named operator policy only offers three levels of coverage: liability coverage, uninsured
motorist coverage, and medical payments coverage. And remember that named operator policies are only secondary coverage as opposed to primary coverage like regular auto insurance is. What that means is, if you have an accident, the owner of the vehicle’s regular auto insurance company is going to be the main insurer. So they're the ones that are going to pay first. This only covers you if what they have is not enough to cover all the damage. Then a named operator policy will kick in on a secondary level. That's why named operator policies cost so much less than regular auto insurance policies.
Here's what a named operator insurance policy does not cover. You'll notice on the previous screen you do not see comprehensive and collision coverage. That's the actual physical damage
coverage on your vehicle. A named operator policy does not offer that. Also, it provides no coverage whatsoever if you're driving a vehicle that you own, or a vehicle owned by anyone living in your household. And just like a regular auto insurance policy, no policy will cover you for commercial or business use of the vehicle. To get covered for that, you need commercial auto insurance.
Now let's go over an SR22 filing. What it is and what it isn't. An SR22 filing is not auto insurance. It simply attaches onto an auto insurance policy. And what it does, it's a guarantee to your state BMV or DMV that you're carrying at least the state minimum in auto insurance liability coverage. Now for those of you who don't own vehicles, an SR22 attaches to a named operator policy just as easy as it does a regular auto insurance policy.
So once you buy this policy with an SR22, the company will let your state license bureau know about it. And as long as you've met all your other reinstatement requirements, an SR22 filing will be the last step in getting your license back. Now, here's the bad part of it. The insurance company has to notify the license bureau if this policy ever cancels.
So the best way to think of an SR22 filing is to think of it as a “tattle tale”, as I like to call it. In
other words, the company is required by law to tattle on you if you ever cancel or lapse on a policy with an SR22 attached to it. Once this happens, your license will get suspended again until you take out another SR22 filing that is active.
Quickly, I want to go over special filings which only apply to drivers in Virginia and Indiana. In Virginia, many of you will be required to carry an FR44 filing. And in Indiana, you'll be asked to
carry an SR50 filing. Just understand that everything I've said about SR22s in this video apply to both of those as well. And in the case of SR50s in Indiana, also understand they have since
done away with SR50s. And the only ones still being required to carry them are those who are grandfathered in before the law changed. You're probably going to have to get an SR22 filing as a substitute. But don't worry about it. That will work just fine instead of an SR50. The reason you'll probably have to substitute is, most auto insurance companies no longer write SR50
Now this is very important. After you bought a named operator policy with an SR22 and you've got your license back, sooner or later many of you are going to want to buy a vehicle of your
own. And as you remember, named operator policies won't cover you driving a vehicle that you own. So how should you handle that? Well, you have two options.
The first option: You can easily convert a named operator policy to a regular auto insurance policy in just a few minutes. All it takes is a call to your agent to make the change. You're basically just adding a vehicle to your policy, which will automatically convert it to a regular auto insurance policy. This does not affect your SR22 filing in any way. In fact, in most cases your policy number even stays the same. But remember, it's very important that you do this before you drive the vehicle. And what this option does, it combines your SR22 and a regular auto insurance policy together. So that way, you're only paying for one policy this way. This is the most common option. And for eighty to ninety percent of you, it's the better option.
The second option: You can also carry two active policies at once. Some people do this. They'll have a named operator policy just to take care of their SR22 filing and keep their license. And then they go and buy a regular auto insurance policy just to insure the vehicle(s). For most people, like I said, the first option is a better choice than this one. But not always! There are situations where the second option makes better sense. So I hope you have a better understanding now of how named operator policies work in conjunction with SR22 filings. Thanks for watching and have a great day!
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..