What happens when you need to have an SR22 state filing but you don't have a vehicle to insure with regular auto insurance?
You will then have to take out what is known as a named operator policy ( a.k.a. non-owners policy). You simply attach the SR22 filing to this policy instead of a regular auto insurance policy.
What's the difference between non-owners named operator policy and regular auto insurance?
The main difference is that regular auto insurance primarily covers the vehicle, whereas a non-owners policy covers the driver. This means that coverage only applies when the person on the policy is driving, no one else! Also, with the non-owners named operator policy, there is no coverage on the vehicle you are driving. The only coverage offered on a named operator's policy is liability coverage, medical payments coverage and uninsured motorist coverage.
How does a named operator policy compare with regular auto insurance as far as cost?
A named operator is cheaper than an auto insurance policy (and sometimes much cheaper, depending on your state). But understand why that is..... There is much less coverage.
What happens if I purchase a named operator's policy and then borrow a friends car and pull out in front of another car, and total both cars?
In this case a non-owners policy would cover the vehicle you hit and cover any injuries of people who were in the vehicle up to the liability limits of your policy. However, there is no coverage on your friends car that you borrowed. So you had best hope your friend is carrying collision coverage on their vehicle!
Does a named operator policy cover me driving my own vehicle?
No! There is no coverage on owned vehicles with a named operator policy. If you own a vehicle, you need a regular auto insurance policy instead. Some states have what is called a broad form named driver policy, which is similar to a named operator policy. Broad form policies do cover owned vehicles, but they have big limitations. I wouldn't recommend it if you own a vehicle.
What happens if I purchase a named operator policy and then buy a vehicle later on?
Auto insurance companies will handle it one of two ways. Some companies will simply add the vehicle on your policy and automatically convert the policy to a regular auto insurance policy. Other companies will have you cancel the named operator policy and simply rewrite it as a regular auto insurance policy. Either way, it's very simple to do and only takes minutes to complete.
How do I find the cheapest named operator policy rate?
The only way to find the lowest rate is to shop around with several companies. There's no one company that is the cheapest for everyone. The most efficient way to shop around is through an independent insurance agent. That way, the agent does all the shopping around for you.
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Related Blog Articles:
Video: Auto Insurance for Drivers Who Don't Own a Vehicle
Understanding named operator (non-owner) auto insurance policies and how to get the best rate
Where can I buy an out-of-state SR22 auto insurance filing?
What is a Named Operator (aka non-owner) Auto Insurance Policy?
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..