What Is a Named Insured Driver?
Last Updated on February 28, 2021
When dealing with car insurance, you will encounter terms like “named insured driver.”
The named insured driver is typically the owner of the insurance policy. It’s the primary driver of the vehicle that is being insured.
You can list other drivers on your policy, but only the named insured driver can make changes to the policy.
Keep reading to discover everything you need to know about named insured drivers and how they impact car insurance premiums.
About the Named Insured Driver
The named insured driver is the main individual listed on the insurance policy.
Typically, the named insured driver is the owner of the vehicle being insured. The owner of the vehicle buys insurance to protect that vehicle, and that person is the named insured driver.
The owner of the vehicle is typically the primary driver of that vehicle. You are the owner and primary driver of the vehicle, which is why you’re buying insurance for that vehicle.
As the named insured driver, you can make changes to your policy. You also receive payment from your insurance company in the event of a loss – like an accident.
Insurance companies let you add multiple drivers to a policy. However, these people are not considered named insures drivers. These are additional drivers listed on your policy. These drivers cannot make changes to your policy, nor will they receive payment directly from the insurance company; instead, they’re people who drive your vehicle.
Some insurance policies have multiple named insured drivers. You and your spouse may be listed as named insures drivers, for example.
Your insurance policy should list the named insured driver on the first page.
Why the Named Insured Driver is Important
The named insured driver plays an important role in insurance. Your insurance company requires a named insured driver to write a policy.
Named insured driver issues can get complicated. Insurance companies and states have different rules for named insured drivers.
Some insurers require you to list your spouse as a named insured driver on the same insurance policy. Other insurers do not.
Some states require you to list your spouse as a named insured driver, while others do not.
In some states, you can exclude your spouse from your insurance policy, which means your spouse is not covered by insurance while driving your vehicle. Your spouse is not a named insured driver, nor is your spouse a secondary driver. You might exclude your spouse for having a bad driving record, which would normally raise premiums.
Additional drivers can drive your vehicle while covered by insurance. They have some of the same rights as the primary named insured driver. However, additional named insured drivers are not typically responsible for paying for premiums, nor will they receive payment from an insurer after a loss.
How to Remove Named Drivers from your Policy
It’s possible to remove named drivers from your policy. If you are the primary named insured driver, then you have the right to change your policy, add or remove drivers, and take other action.
If your teenage child moves out of the house, for example, then you should remove your teenage child as a named additional driver on your policy.
Legally, spouses cannot remove each other from insurance policies. If each spouse is listed as the named insured, then that spouse must remove themselves from the policy or give explicit permission for the removal. You cannot contact your insurance company and ask to remove your spouse as a named insured driver.
What’s the Difference Between a Named Insured Driver and an Additional Driver?
As the named insured driver, you have different rights and responsibilities than additional drivers on your policy.
Yes, your insurance policy covers named insured drivers and additional drivers. However, it covers these drivers in different ways.
If you are the named insured driver, then your policy covers you everywhere. You can drive your car, drive someone else’s car, rent a vehicle, and remain covered by insurance. Your own insurance policy will cover the damage because you’re the primary named insured driver.
As the named insured driver, you are also (typically) responsible for paying for the policy, adjusting coverage, and changing your policy as needed.
In the event of a loss, your insurer should pay the named insured driver. Even if an additional driver was driving the vehicle at the time of the loss, the named insured driver should receive the check.
As an additional driver, you are covered when driving the vehicle of the named insured driver.
Typically, additional drivers share the home of the named insured driver. It may be a child or partner, for example. It could be a roommate who drives the car regularly.
The additional driver is protected when driving the primary driver’s vehicle, but they have no other policy rights. The additional driver does not pay for premiums, nor can the additional driver make changes to the policy.
As an additional driver, you are not covered when driving other vehicles.
Both the named insured driver and additional driver have some things in common. Your insurer checks the driving record of the named insured driver and any additional drivers to calculate premiums. If any driver has a bad driving record, then you pay higher rates.
How Named Insured Drivers Impact Insurance Premiums
The people listed on your policy impact insurance premiums.
The insurer checks the driving record of anyone listed on your policy, then uses this information to calculate rates.
If someone in your household has a bad driving record, then you may wish to exclude that person from your policy. As the named insured driver, you can exclude people from your policy, which means they won’t impact rates (and insurance won’t cover them).
Final Word on Named Insured Drivers
The named insured driver is the main person listed on the insurance policy. It’s typically the owner of the vehicle and the person who drives the vehicle most frequently.
For more information about insured drivers, additional drivers, and how they impact your premiums, contact your insurance provider.