Individuals who purchase insurance policies on vehicles they own or lease are commonly referred to as "named insured drivers." They're in charge of making policy changes and approving them, as well as verifying claim details and paying premiums. In the event of a loss, the insurance company also writes checks to them. Per policy, however, there can be more than one named insured driver. Couples who are married or who own a vehicle together are frequently listed as named insured drivers. The names covered by the insurance are usually listed on the first page of your policy.
What Are Named Insured Drivers and How Do They Work?
If you and your spouse live in the same house, some auto insurance companies require you and your spouse to be named on the same policy, while others do not. State laws differ as well. Some states, for example, allow you to exclude your spouse from the policy. Others require you to include all members of your family on the policy, which automatically covers your spouse. You usually have to have good reasons to exclude your spouse from a policy. They may not have a driver's license, for example, or they may be covered by another insurance policy. If there is more than one named insured driver on a policy, they may be mentioned as an additional named insured driver. They generally have the same rights and coverage as that of the named insured driver, but they're not always liable for the policy premium. In some cases, the rights of the additional named insured driver may differ from those of the primary named insured driver. It's critical to talk to your insurance broker about the differences in your policy. One spouse cannot legally remove the other from a car insurance policy as a named insured. The person who is being removed must either do it themselves or give explicit permission. When a couple divorces, they often want to separate their car insurance, but it's not always a simple or straightforward process. When a driver is being removed from a policy, it is critical that they are informed, and divorce is no exception. Before taking any action to remove a named insured, an agent or representative will either contact that person or request that they contact them. Before removing a named insured, an insurance company will frequently require them to fill out and sign a form. A new policy may be required in some cases, as well as proof of insurance to the insurance company in order to remove the named insured from the existing policy. 3Additional Drivers vs. Named Insured Drivers
On a car insurance policy, additional or authorized drivers are those who live in the same house as the named insured and drive the vehicle covered by the policy. Even if they're the driver at the time of the accident, claims will not be paid out in their name. Additional drivers are only covered if they are driving the policy's vehicle. For instance, if an additional insured driver is hit by another car while walking to the vehicle, their injuries are not covered by the insurance policy. However, if the named insured driver was involved, they would be covered. Additional drivers are unable to make significant changes to the car insurance policy without the permission of the named insured because they do not own the vehicle or pay the insurance premiums. The insurance company will handle everything on behalf of any drivers with confirmation from the named insured. Contact your insurance agent or customer service representative if you have any questions about your car insurance policy.Important Points to Remember
Owners of an insurance policy on a car they own or lease are typically named insured drivers. A policy can have multiple named insured drivers, such as a spouse. Although additional drivers can be listed on a policy, only named insured drivers to have the ability to make policy changes. Without consent, a named insured driver cannot be removed from a policy.