Named Operator Policy Is Inexpensive & Provide Necessary Coverage for Non Owners
A named operator policy, which is also known as a non-owner policy, is insurance coverage that is intended for people who plan to drive vehicles that do not belong to them or anyone in their family. This type of policy meets the state's minimum requirement, which usually means that the policy will cover any damage to a vehicle that is hit by the motorist. It also covers damage to the vehicle being driven if an uninsured motorist hits it. If you have this type of coverage, and you are operating a rented or borrowed vehicle, it will not pay for any damages that are sustained by the vehicle you are driving.
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One question insurance agents often get is ‘How can I get car insurance if I don’t have a car?’ One might not think this would be an issue. After all, if you don’t have a car – why would you need to get insurance for something you don’t own? This article defines Named Operator Policy and explains how it works.
What is a ‘Named Operator Policy’?
A Simple Explanation:
A named operator policy, which is also known as a non-owner policy, is insurance coverage that is intended for people who plan to drive vehicles that do not belong to them or anyone in their family. This type of policy meets the state’s minimum requirement, which usually means that the policy will cover any damage to a vehicle that is hit by the motorist.
It also covers damage to the vehicle being driven if an uninsured motorist hits it. If you have this type of coverage, and you are operating a rented or borrowed vehicle, it will not pay for any damages that are sustained by the vehicle you are driving.
Why do you need Non-Owner Car Insurance?
There are actually several reasons why people want liability insurance for driving; even if they don’t own a car.
For example, in bigger cities, it costs a fortune to insure automobiles and pay for parking. Many people rely on public transportation to get around.
However, when they go away on vacation, or simply need transportation, people who don’t own cars like to rent them. The problem is, when renting a car, you must show proof of insurance. Or, you have to pay extremely high prices for the rental car insurance. Many people like to avoid having to do this. Therefore, they seek out something called ‘Named Non-Owner Insurance Policies.’
Where to get a Named-Operator Policy?
Named Non Owner Insurance is available from very few insurance companies. Also called ‘non-owner car insurance,’ the above scenario isn’t the only reason a person would need to buy a non-owner policy. Often times, people have DUI convictions which result in license suspensions. In order to reinstate their license, they need to file an SR22 and get non – owner insurance to get back behind the wheel.
Related: Can Someone Else Get Insurance for Me?
Here is a list of what you can, and cannot expect from a non – owner insurance policy:
- Named non – owner auto insurance may be less expensive. The reason is you do not own a vehicle, thus you’re less likely to drive a vehicle. The policy will not account for comprehensive and collision damage to your vehicle, which is where insurance companies pay out the most money. However, if your driving history has several blemishes and major violations, your cost will be more than someone who has a good driving history. Usually, divers with less than seller’s records purchase named non owner insurance.
- As mentioned above, non – owner insurance policies cover only liability and property damage. They do not cover comprehensive and collision losses. In layman’s terms- if you hurt someone who is not in your car in an accident, you are covered for what you are liable for.
- Also, if you hit another car or a fence, or a pole, etc. – you are covered by the property damage you inflict on another vehicle or property. You are not covered if you are renting a car, and you get into an accident, and you need to fix the rental car.
- Your named non owner policy can likely be used as secondary coverage if you are borrowing a friend’s car. Many insurance companies extend “broad coverage” to their insured, so anyone they lend their cars to is covered. You are also not covered for towing or road side assistance, or rental coverage to replace the vehicle you’ve damaged while it’s in the shop being fixed.
- If you are wondering whether this type of insurance is something you should look into, before you try you will want to make sure you have a valid driver’s license with no current suspensions. You are not likely to have regular access to a car, nor are you likely to own a vehicle.
When should you buy this policy?
If you are not going to own a car for a period of time, but you know you will be buying a car in a few months, you should definitely get this type of policy. Because this will ensure that you don’t have a gap in insurance coverage. If you don’t have continuous coverage, many insurance companies will give you very high rates.
Should you get a named driver policy?
Insurance companies love knowing who will be driving the cars listed in an insurance policy, so you might be able to save money on the premium if you sign up for a named driver policy. However, it’s always good to shop around and get a few different quotes from insurers.
The Bottom Line
Named insured drivers control the auto insurance policy. These drivers are also the only ones who will be covered in an accident. So, if you let someone borrow your car who is not on the policy, you could be in trouble if they get in a wreck.
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If you decide that you want to apply for a non – owner insurance policy, make sure to have your license and debit card ready for a down payment. Some names of companies who write named operator policies include Progressive, Infinity, Dairyland, and Titan. These companies don’t offer this insurance in all states.
So, it’s best if you request free quotes from us and see who might offer you the best rate with your circumstances.
Good luck, and drive safely!