What is a Named Operator (aka non-owner) Auto Insurance Policy?

​A named operator policy is a special type of auto insurance policy for people who need to have auto insurance liability coverage but don’t have a vehicle to insure. A named operator policy offers liability coverage, medical payments coverage, and uninsured motorist bodily injury coverage just like a regular auto insurance policy does. However, it does not offer comprehensive or collision coverage, since there is no vehicle to insure.
 
 
     You may be wondering why someone without a vehicle would need auto insurance… You would be surprised.
 
Reasons someone would need a named operator insurance policy:

• Drivers with a suspended license may need to buy auto insurance with an SR22 filing to get their license reinstated.

 

• Many employers require their employees to carry a personal auto insurance policy of some type (even though a personal auto insurance policy won’t cover them while working, commercial auto policies give discounts for individual employees having it, which is why a boss may require it).

 

• Some drivers just want to use it to protect them self from driving without liability insurance in case the owner of the vehicle they're borrowing isn’t carrying auto insurance like they’re supposed to be.

 

Other things to keep in mind about a named operator policy:

• A Named Operator policy offers no coverage on vehicles that you or anyone else in your household owns. If you own a vehicle or drive a household member’s vehicle, this policy won’t work for you!

 

• A Named Operator policy is secondary coverage. The friend or neighbor that you borrowed the vehicle from is responsible for having regular auto insurance, and that is the primary insurance if you borrow their vehicle. Coverage on a Named Operator policy only kicks in if the owner wasn’t carrying liability coverage like they’re supposed to be, or if their policy paid out their maximum limits and it wasn’t enough to cover all the damages you caused. This is why a named operator policy costs so much less than regular auto insurance.

 
 
What happens if I buy a Named Operator policy and then buy a vehicle shortly afterwards?
 
 
No problem! If you buy a vehicle while having a Named Operator policy, all it takes is a 5 minute phone call to your agent. A Named Operator policy will automatically convert to a regular auto insurance policy once you call your agent and add your vehicle to the policy. Just be sure to make that change before you drive your new vehicle.
 
 
 
Get a Named Operator Auto Insurance Quote with Lyles Insurance
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Related Blog Articles:

​Video: Virginia FR44 Named Operator Auto Insurance 

​Video: Named Operator Auto Insurance with an SR22 Filing

Video: Auto Insurance for Drivers Who Don't Own a Vehicle

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