Hello! I'm Dan Lyles with Lyles insurance. And in this video we're going to go over a named operator auto insurance policy, also known as a non owners policy.
A named operator policy is simply a special type of auto insurance for drivers who need to carry personal liability auto insurance, but they do not own a vehicle.
Why would someone need a named operator policy? Well, there are several reasons. But there's three that are most common. The first being for drivers that's had their license suspended, and they need either an SR22, FR44 or SR50 (filing) to get their license reinstated. A named operator policy can take care of all of those. And the second reason is because many employers require their employees to have liability auto coverage. Well, if you don't own a vehicle then this is your only option. And third, this is kind of what I call a secondary cover-your-ass policy. In other words, if you borrow someone's vehicle, like your friend or neighbor’s…. When you're driving, you're actually insured under their auto insurance policy. But what if they're not carrying auto insurance like they're supposed to? This policy will kick in as a cover-your-ass type of thing.
On a named operator policy, there are only three coverages that it offers: Number one being liability coverage, number two being uninsured motorist bodily injury coverage, and the third being medical coverage. That is the only coverages a named operator policy offers.
It's also very important to keep in mind what coverages are not offered under a named operator's policy. The main being physical damage coverage on the vehicle you're borrowing. That includes Comprehensive and Collision coverage. So if you're borrowing someone's vehicle, the only way you have coverage on that vehicle is if the person you borrowed it from has Comprehensive and Collision on their regular auto insurance policy. Otherwise, there's no coverage on the vehicle you're driving at all. And also this is important to keep in mind. These policies do not cover you whatsoever if you're driving any vehicle that you own, or a vehicle owned by anyone living in your household. So remember that will not work for you if that's the case. And finally, just like a regular auto insurance policy, this provides no coverage whatsoever for any commercial or business use. The reason employers sometimes ask for it is just because they get discounts on your commercial auto policy.
Also, this situation comes up quite often. So it's important to know how to handle it. Let's say that you've already taken out a named operator/ non-owners policy, and then buy a vehicle later on…. The beauty of these policies are that they can easily convert to a regular auto insurance policy in just a matter of a few minutes. All it takes is a call to your agent to make a change. But it's very important that you do this before you drive the vehicle. The reason being is like I mentioned on the last slide named operator policies do not cover vehicles that you own.
It can be frustrating sometimes trying to find a named operator policy, or finding one at a reasonable price. What I suggest is that you contact an independent agent, preferably one that deals in high-risk auto insurance. An independent agent will have multiple companies to quote you with. And that will save you the trouble of shopping around for the lowest rate. If you need any help looking for a named operator policy, I'll be glad to help any of you living in the states of Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia. Just give me a call or an email or fill out a quote form, and I'll be happy to run a quote for you. I hope you've learned what you need to learn about a named operator policy. Thanks and have a great day!
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..