Key Takeaways
- Named insured drivers typically are the owners of an insurance policy on a car they own or lease.
- Policies can have more than one named insured driver—a spouse, for example.
- Additional drivers may be listed on a policy, but only named insured drivers can make changes to a policy.
- A named insured driver cannot be removed from a policy without consent.
What Is a Named Insured Driver?
Named insured drivers usually are the individuals who purchase insurance policies on vehicles they own or lease. They're responsible for making and approving policy changes, verifying claim details, and paying premiums. The insurance company also writes checks to them in the event of a loss.
However, there can be more than one named insured driver per policy. Often, those who are married to each other or own a vehicle together are listed together as named insured drivers. You usually can find the named insured drivers on the first page of your policy.
How Named Insured Drivers Work
Some auto insurance companies require you and your spouse to be named on the same policy if you're living under the same roof, and others don't. State laws also vary. For example, some states give you the option to exclude your spouse on the policy. Others require you to include all family members on the policy—which means your spouse automatically is covered. If you want to exclude your spouse from a policy, you usually have to have good reasons. For example, they might not have a driver's license or might already be covered by another insurance policy.
In some policies, if there is more than one named insured driver, they'll be listed as an additional named insured driver. They usually have the same rights and coverage as the named insured driver, but they aren't always responsible for paying the policy premium. In some cases, the additional named insured driver might not have all of the same rights as the primary named insured driver. It's important to clarify the difference in your particular policy with your insurance broker.
Note
Legally, one spouse cannot remove the other as the named insured on a car insurance policy. The one being removed must do it themselves or give their explicit permission.
Couples often want to separate their car insurance during divorce, but it’s not often a simple or straightforward process. It is important a driver knows when they are being removed from a policy, and divorce is no exception.
An agent or representative will either contact the person you wish to remove as named insured or request that person contact them before taking any steps to remove them. In many instances, an insurance company will require the named insured to fill out and securely sign a form before removing them. In some cases, a new policy must also be in place, and proof of insurance must be provided to the insurance company to remove the named insured from the existing policy.
Named Insured Drivers vs. Additional Drivers
Additional or authorized drivers on a car insurance policy are those who live in the same household as the named insured and drive the vehicle on the policy. However, claims will not be paid out in their name even if they were the driver at the time of the accident.
Additional drivers are covered only when driving the vehicle in the policy. For example, if an additional insured driver were to be hit by another car while walking to the vehicle, their injuries would not be covered under the insurance policy. However, if that happened to the named insured driver, then they'd be covered.
Since they neither own the vehicle nor pay the insurance premiums, additional drivers also are not able to make significant changes to the car insurance policy without the named insured's approval. Everything processed by the insurance company on behalf of any drivers will be handled with confirmations from the named insured.
If you're ever unsure about your car insurance policy, contact your insurance agent or customer service representative.
FAQs
As you might guess, the named insured on an auto insurance policy is the individual who purchases coverage and has their name listed on the policy declarations page. The named insured is responsible for paying premiums on the policy as well as filing claims with the insurance provider.
What does it mean to be insured as a named driver? ›
If you have a named driver car insurance policy, the only drivers covered in the event of a crash are those specifically listed on the auto policy. If you allow your friend — unlisted on the named driver policy — to borrow your vehicle and they get into an accident, you would have no coverage.
What is the difference between a listed driver and an insured driver? ›
Policyholders should note the difference between rated and listed drivers on your policy. Rated drivers are the household members on your policy that will affect your insurance premium. Being a listed driver on the policy refers to anyone noted on the policy, but does not affect the premium.
Is there any downside to being a named driver? ›
CONS: Accidents by the named driver may impact your no claims discount. If the named driver has an accident while driving your car, the accident will be recorded against them. However, because the claim will be made on your policy, it could affect your no claims bonus, even if the accident has nothing to do with you.
What does it mean when you have an insured driver? ›
Adding a driver to your insurance policy means they're an insured driver under your policy when they drive your car. So, if they get into an accident, your insurer is more likely to cover the damage than for an unlisted driver.
Do I lose my no claims if a named driver has an accident? ›
Your level of no claims discount won't be affected, even if you add a named driver with no car insurance history. However, if a named driver has an accident whilst driving your car, it will affect your no claims discount in exactly the same way as if you, yourself, had been behind the wheel.
How do I know if I'm an insured driver? ›
Requesting car insurance information from your local DMV can help you track down coverage details. Fill out a form with the DMV, noting your contact information and reason for requesting the desired information. You may also need the vehicle's license plate number and Vehicle Identification Number (VIN).
Am I insured as a named driver? ›
If you drive someone else's vehicle then you will not be covered by their (the main driver) motor insurance policy – you must become a named driver on their policy. As a named driver you will be given the same level of cover as the vehicle's main driver.
What happens if a driver is not listed on an insurance policy? ›
If an accident occurs while an unlisted driver is behind the wheel, the insurance company might deny coverage. This means the policyholder could be personally liable for damages, leaving them to pay out of pocket.
Does it matter who is listed as the primary driver? ›
Insurance companies assign a primary driver to each car in the household; the primary driver's driving record and risk profile are used to calculate the rate for that car. If your teenager is the primary driver of a car, insurance will cost more due to the increased risk.
If you want named driver insurance for up to a month, temporary insurance is the ideal solution.
Can a named driver use the car? ›
Types of Policies
In Ireland, it's common for young drivers to be included on their parent's insurance policies as a Named Driver, which means they can legally use the vehicle as long as a qualified driver is in the car, they have their provisional licence, and the vehicle has L plates clearly displayed.
Why does my insurance go up when I remove a driver? ›
If the driver has a history of insurance claims and accidents removing them from your policy may reduce your rate. On the other hand, your rate could go up if the driver has no history of claims, accidents, or traffic violations.
Is everyone insured to drive my car? ›
Contrary to popular belief, car insurance typically follows the car — not the driver. If you let someone else drive your car and they get in an accident, your insurance company would likely be responsible for paying the claim, depending on the coverages in your policy.
What is the difference between a named insured and a driver? ›
The takeaway for finding the best insurance is that the owner (registrant) of the vehicle should be a named insured on whatever policy insures the vehicle. An additional driver will ONLY be covered under the car they are listed as. There can be multiple named insureds on a policy.
What does it mean to be a listed driver on an insurance policy? ›
Also known as a listed or list-only driver, these individuals may have regular access to your vehicle but either don't drive it often or have their own insurance coverage. This may be the case with unmarried partners, roommates, deployed military family members or an your adult child who is living with you temporarily.
What is the difference between named insured and insured? ›
A named insured is entitled to 100% of the benefits and coverage provided by the policy. An additional insured is someone who is not the owner of the policy but who, under certain circ*mstances, may be entitled to some of the benefits and a certain amount of coverage under the policy.
Does it matter whose name is on the car insurance card? ›
In most states, police will accept an auto insurance card that lists the car you're driving on it, and it doesn't matter if your name is specifically on the card (some states even accept electronic proof of auto insurance); however, Texas is different.
What is an insured driver name? ›
Named insured drivers on a car insurance policy typically are the individuals who own or lease the vehicle being insured. They also have control over the policy and are the only ones authorized to make changes.
Can you change named driver to main driver? ›
Yes you should always inform your insurance company of any changes so that records are up to date. If you don't, you could risk invalidating your car insurance policy. Speak to your insurer as soon as possible so that you can correct your details as the main driver.
