Hello I'm Dan Lyles with Lyles Insurance. In this video, we're going to cover FR44 Named Operator auto insurance policies.
First let me explain what an FR44 filing is, and also what it does. Contrary to popular belief, an FR44 is not auto insurance. It's just a state filing that attaches onto an auto insurance policy. An FR44 is for drivers that have their license suspended and they're trying to get her license back. Getting this FR44 filing is usually the last step they have to take before their license is valid again.
An FR44 is the DMV's way to keep dibs on you. They want to monitor whether or not you're carrying active coverage during the time you're required to have this FR44. And you're required to have double the state minimum in liability coverage. So in Virginia, that's 50/100/40 that you'll have to carry. The best way to think of how it works is what I call a tattletale. If you ever cancel, lapse or expire on a policy that has an FR44, the auto insurance company is required by law to tattle on you. Once this happens, they'll suspend your license again until you have another active FR44. And one thing Virginia is strict about, you'll probably also get hit with another reinstatement fee.
Okay so now we need to go over the basics of a Named Operator policy. It's also known as a non-owner policy. And it's made for drivers who need auto insurance liability coverage, but they can't buy regular auto insurance because they don't have a vehicle to insure. This is where a named operator policy comes in. This is who this is designed for. And an FR44 can attach onto a named operator policy just as easy as it does a regular auto insurance policy.
Coverage on a named operator policy is very limited compared to regular auto insurance, which is why it costs much less. Coverage is only on a secondary basis. In the event of an accident, regular auto insurance that the vehicle owner has is always the primary coverage. And there is no coverage whatsoever when driving a vehicle that you own or a vehicle owned by someone in your household. So make sure you're aware of that. A lot of people have been burned by it. And finally, only liability, uninsured motorist and medical payments coverage is offered on these policies. They do not offer comprehensive and collision coverage, which is the actual physical damage coverage on your vehicle. You won't have that with a named operator policy.
Here's a common scenario that comes up: Let's say you already have a named operator policy and then buy a vehicle later on. How does that work? Well, you know you now need to switch to a regular auto insurance policy to have coverage on your vehicle. The good news about a named operator policy is it can easily convert to a regular auto insurance policy just like that. All it takes is a few minutes and a phone call your agent, and it'll be done. But make sure you do this before you start driving your vehicle.
So I hope this Video has given you a better understanding of how an FR44 named operator policy works. If you would like me to personally run you a quote, I'll be happy to do so. I've included a link: if you're watching this from my blog, I'll have it posted right under the video. If you're watching this on YouTube, I will put it in the description. Or, if you want to just give me a phone call, I've also listed my phone number. Give me a call and I'll be happy to run you a quote over the phone. Thank you for watching and have a great day!
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Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..