Named Insured vs. Additional Driver

Named Insured vs. Additional Driver

If you’ve been reading our blog for some time, you’ve probably had the opportunity to learn a great deal about auto insurance. [INSERT LINK TO “What is Auto Insurance”] It’s a vast topic, as not everyone’s situation is identical in every case. However, insurance companies recognize certain types of drivers in various ways, making insurance possible for married couples, families with children living at home, and even co-ownership of vehicles.

Perhaps you’ve come across your insurance paperwork and noticed the terms “named driver” and “additional insured.” While they may seem to obvious distinctions, what exactly do they mean and how do they affect coverage? In this article, we’ll take a look at how they differ and how you can know how you’re covered. At the end, we’ll include some information for those curious to speak with an expert insurance advisor.

What’s the Difference between Named and Additional Drivers?

As a named insured, a driver gets the coverage everywhere they go. Named insured(s) can drive a car, or anyone else’s (including rental car) and get into an accident. Their own insurance will cover the damages. A named insurer is essentially the “owner” of an insurance policy, responsible for paying premiums and in charge of making changes to a policy (ie. i.e. changing limits, adding coverage, adding/deleting vehicles, etc.). In the event of a loss, the named insurer is the person that the insurer writes the check to in the event of a loss.

Additional drivers are a different matter. An additional driver is a person who resides with the named insured and/or regularly uses a shared vehicle. His or her record is used in underwriting the policy to determine rates, but the person has no policy rights. Drivers are not responsible for premiums, and cannot make changes; they’re only are covered on the vehicle they’re listed under.

The takeaway for finding the best insurance is that the owner (registrant) of the vehicle should be a named insured on whatever policy insures the vehicle. An additional driver will ONLY be covered under the car they are listed as. There can be multiple named insureds on a policy. This is no more apparent than if a married couple has two cars, one registered to the husband, another to the wife; they can still put both cars on one policy, but both should be named insureds (joint ownership).

* * *

Now that you’re armed with more information about automotive insurance, you can make more informed decisions that will not only save you money, but bring you peace of mind. Speak to a Riskblock advisor today for helping you find the insurance company that fits you at the reasonable rate. Remember, it’s always better to be safe than sorry.