What is a named operator policy?

What is a named operator policy, and how does it differ from a standard auto insurance policy? In addition, can a named operator insurance policy include more than one driver? Named operator car insurance is a specialized type of auto insurance that only covers named drivers. And there are generally two types of this insurance.

There are a few reasons for you to purchase an operator insurance policy. For example, this type of policy is beneficial if you do not own a car. Also, you may only want to insure people whom you know will use your vehicle.

Should you purchase an operator insurance policy? It depends on your situation. Read on if you would like to know more about named operator car insurance, including what and who it covers.

What does a named operator car insurance policy cover?

It depends on who you want to insure because you have two options for private operator insurance.

Named Operator Policy

If you want to cover the people listed on a policy and no one else, a named driver policy might be best for you. Whereas a standard policy may temporarily cover unlisted drivers who borrow a policyholder’s car under permissive use, named driver auto insurance only applies to all persons named on a policy.

For example, you can add GAP insurance or rental car reimbursement coverage to a named driver policy as you would with a standard one. But if an unnamed driver uses your vehicle and gets into an accident, your policy will not cover that driver or any damage to your car.

Non-Owner Policy

Alternatively, you can purchase a non-owner car insurance policy. Non-owner car insurance is an operator’s insurance policy because it only applies to you, but it has more limitations.

If you can purchase non-owner auto insurance, you will only have two types of liability car insurance — one for bodily injury and one for property damage. In most states, you only need to meet a minimum requirement for liability insurance, but your named operator policy can include different types of coverage.

Depending on your state and insurance company, your named operator policy might include the following coverages:

• Uninsured motorist protection (UM). This coverage acts like an at-fault driver’s liability coverage if you get into an accident.
• Underinsured motorist protection (UIM). This fills the gaps when the other driver has low liability limits compared to the damage you suffer.
• Medical payments coverage (MedPay). This protection helps pay your, any family members’, and your passengers’ medical expenses in the event of a car accident.
• Personal injury protection (PIP). This coverage acts much like MedPay, but it might cover more, like lost wages and death benefits.

Remember that a non-owner policy does not include collision or comprehensive car insurance. Such a limited policy only follows the driver, not the car.

Which companies offer named operator insurance?

And how much does this type of policy cost?

Most car insurance companies will not offer named operator policies, and the companies that sell this type of insurance do not openly advertise it. Here are some companies that may sell nonstandard insurance:

Named Operator Policy Car Insurance Rates

Also, when selecting a company that offers a named operator policy, ensure that you meet your state’s minimum insurance requirements.

Minimum Liability Insurance Requirements

These are the state requirements for liability car insurance:

Minimum Liability Car Insurance Requirements by State

If your state requires uninsured motorist coverage, that insurance has the same limits as your liability auto insurance.

Minimum PIP Requirements

Below, you will find minimum requirements for states that allow personal injury protection:

Personal Injury Protection Car Insurance Coverage Requirements Per State

Read more about personal injury protection before purchasing this coverage.

Is a named operator car insurance policy right for you?

As you can see, there are limitations with a named operator policy. While you might save money with either type, this insurance only protects the named drivers on a policy.

A named driver policy can list multiple drivers and costs less than a standard policy. On the other hand, an unnamed driver who uses your car is at risk.

For example, if you have a medical emergency, an unnamed driver who takes you to a hospital will not have coverage, even if it’s permissive use. Also, your auto insurance company will not pay any claims if your car incurs damage in a related crash.

A non-owner insurance policy only covers one driver, but it does not pay for damages to any vehicle you drive. On the other hand, it may be your only option if you do not own a car but often need to borrow and rent vehicles.

If you must buy a named operator policy, it may be challenging for you to find a company that offers them in your state and to compare rates. You may need to locate smaller, local companies that sell named operator policies or speak with an agent to acquire a policy that suits your needs.