What Is a "Named Operator Policy" In Auto Insurance?
In auto insurance, a “Named Operator Insurance Policy” only covers those names listed on the auto insurance. If someone wanted to drive that car they would need their own insurance and if they didn’t have a vehicle themselves they would need their own named operator policy.
You flip a policy to a “Named Operator Policy” when you remove a vehicle so there are no vehicles on the policy. Or when you sign someone up for auto insurance without a car.
You could have a named operator insurance policy whenever someone wants to be insured and have extra coverages while driving someone else’s vehicle.
Although depending on carrier & state, insurance mostly follows the vehicle. Meaning, the owner of the vehicle needs to have insurance and whoever is driving that vehicle, the insurance will follow the vehicle and the vehicle’s owner’s insurance especially if you grant permission or if either person hits each other and doesn’t have their own auto insurance when it is their fault.
Insurance follows the vehicle unless flipped to this named operator policy and lists the names of the insured on the policy, or if there is some special rule regarding a specific insurance carrier or even a state, depending on who is holding insurance legally.
Can I Have Auto Insurance Without a Car?
Yes, you can own insurance without a vehicle. This is called a “Named Operator Insurance Policy” as we are mentioning right here. The rates would be cheaper than having a vehicle on the policy. If you are driving other people’s vehicles, renting vehicles or driving around a lot this policy would help. Consistently paying auto insurance can make your rates go down over time if you remain a safe driver without any claims.
Having auto insurance without a car can also protect you from additional instances that may arise such as the vehicle’s insurance not having enough insurance to cover in case of a large damage or law suit. You may be surprised what auto insurance will cover when you don’t expect it and are in some trouble!
Should I Have Auto Insurance Without a Vehicle?
It depends.
Pros
- It is always good to have extra coverages in case anything were to happen
- Consistent payments with no claims can bring rates down
- Consistent payments with no claims can build loyalty rewards, other benefits and discounts
- If you are driving other people's vehicles you may need this especially if they have a named operator policy themselves.
Cons
- Sometimes it can be expensive
- Bad experiences, difficulties, or can be time consuming
- You are still making payments when you do not have a car
- Sometimes not required if you do not have a car
Sometimes in random scenarios you could be required to hold a named operator’s policy or just have your own insurance on your own daily driver you own if you are doing something especially involving another vehicle. If this is for a business or work you should let it be known vs a personal policy. Sometimes you can pick up a personal policy and then mark “For Business” but it would need to be a personal vehicle. Commercial vehicles almost always have to have a commercial policy because we are unable bring up those vehicles on personal insurance policies when we look them up and try to pull them up and put them on there. Sometimes commercial vehicles will not even register on a personal auto insurance policy such as a box truck or a ford F-350 that has a converted-back specifically for work use.
Unfortunately, sometimes people feel defeated when it comes to insurance and making claims. They feel they are just paying into insurance for no reason. We understand that dealing with some carriers can feel that way. That is why here at Insurance Broker Resources we represent the client and since we have a vast amount of knowledge and expertise in the industry we can guide you to insurance carriers that match your specific needs.