How does a named operstor policy work

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Understanding named operator (non-owner) auto insurance policies and how to get the best rate

While many people are somewhat familiar with regular auto insurance policies, most people have never heard of a named operator policy (aka non-owners policy) until someone advises them that they need it. This article will help you understand exactly how a named operator policy works. It will also show you how to attach an SR22, SR50 (Indiana) or an FR44 (Virginia) state filing onto a named operator policy, if you need to carry one to get your license reinstated. I will also give you some key tips on how to find the best rate.

First, you need to understand clearly what a named operator auto insurance policy does:

• A named operator policy is a special type of auto insurance policy that is for people who do not own their own vehicle, but need liability auto insurance coverage for one reason or another.

• Some people are required to carry auto insurance even though they don't own a vehicle (usually a work requirement).

• Others may need this policy because they need an SR22, SR50 or SR FR44 state filing to get their license reinstated after a suspension.

• Some people just want a secondary policy to cover their ass, in case the vehicle they're borrowing may not be carrying current active liability auto insurance.

What a named operator auto insurance policy covers

• A named operator policy gives the driver liability auto insurance coverage on any vehicle they drive (as long as it's not their own vehicle or belong to someone in their household, or used for commercial purposes).

• A named operator policy acts as a secondary policy. To best explain this, let me give an example: Let's say you have a named operator policy, and you borrow a neighbor's car. Let's suppose you pulled out in front of someone, causing an accident (your fault). In that case, your neighbor's auto insurance policy would be the primary insurance to pay for the other guy's injuries/property damage. If your neighbor wasn't carrying liability auto insurance like he/she should have been, or if they had insurance, but the injuries/damages were higher than the liability levels they were carrying, your named operator policy would then kick in and pay up to its limits.

• A named operator policy will always offer at least the state minimum liability coverage for the state the policyholder lives. Most policies will offer optional higher limits as well.

• Most (not all) named operator policies will also offer uninsured motorist coverage and medical payments (aka PIP) coverage. In some states, one or the other may be required

What a named operator policy DOES NOT cover

• A named operator policy does not cover vehicles that the driver owns or anyone in their household owns. It is also not intended for use borrowing the same car on a regular basis (each insurance company has their own interpretation of that).

• A named operator policy does not cover comprehensive and collision coverage on the vehicle they are borrowing. That means that the vehicle you're driving on a named operator policy will not be covered by this policy. So, for example, if you borrow your friend Bob's Corvette for the weekend, and you crash it, a named operator policy won't cover the Corvette. Bob had better hope (no pun intended) that he has collision coverage on his regular auto policy. Otherwise, he will be very angry with you!

What if I don't own a car when I take out a named operator policy, but buy a vehicle later on?

When this happens, it is very easy to transfer a named operator policy into a regular auto insurance policy. It is very simple to do. It only takes a few minutes to change and convert from a named operator policy to a regular auto insurance policy. All you need to do is call your agent. But it is extremely important that you make this change before driving your new vehicle.

SR22, SR50 and FR44 state filing requirements

If you've had your license suspended and need an SR22 filing to reinstate your license (this also applies to Indiana drivers who need an SR50, and Virginia drivers who need an FR44), a named operator policy is what you need if you do not own a vehicle (Ohio drivers have a couple other more popular options as well, but a named operator policy works nonetheless).
Just let your agent know whatever state filing you need, and he/she will be happy to set that up for you. Not all auto insurance companies offer named operator policies. And many auto insurance companies do not write state filings either. And there are some companies who will write state filings, but charge a fortune to do it!

*** NOTE: Indiana drivers:
Many of you will be required to carry the SR50 filing. However, you will find that most auto insurance companies do not offer the SR50 filing. They only offer the SR22 filing. Don't worry about it. You'll be fine with an SR22 instead. The good news for you is that an SR22 filing can be substituted for those who need an SR50 filing. So your best bet is to just go with that. This substitution allows you to quote with many more companies that suit your needs, and thus will probably get you a lower rate than if you only shopped with companies that offer the SR50.. On the other hand, those in Indiana who need an SR22 filing CAN NOT substitute an SR50 filing for it because the standards are higher with an SR22 filing. But for those who only need the SR50, don't worry about that higher standard. It won't apply to you. You can substitute either filing with no problem.

Finding the best rate on a Named Operator policy (with or without a state filing)

• There is really no magic sauce or secret to finding the best rates on a named operators policy. It's just a matter of looking in the right places.

• Many auto insurance companies do not sell named operator policies. And many auto insurance companies do not offer state filings. So looking in the right place is very important.

• Your best bet is to get quotes from an independent auto insurance agent. That way, you can get quotes from multiple companies at once instead of getting one quote per company at a time.

• Ideally, finding auto insurance agents who cater to high-risk drivers are going to be your best bet, whether you need the state filing or not, and whether you're driving record is clean or not. That is because the companies that cater towards high-risk drivers usually offer the lowest rates with named operator policies.

• So if you call and get quotes from independent auto insurance agents, three or four calls can get you quotes with up to 20 to 30 companies. That gives you the best chance at getting the best rate.

If you live in Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia, I will be happy to run you a named operator quote with the companies that I have. Simply click on your state below, fill out the short quote form, and I will you the lowest rate I have. And as always, I handle all quotes personally and privately.