Jessica Sautter has a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around auto insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Reviewed by Natasha McLachlan
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UPDATED: Oct 1, 2020

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While it may seem counter-intuitive at first, there is an insurance policy for licensed drivers who do not own a vehicle.

What is a Named Operator Policy?

This is a policy that meets the state minimum insurance requirement which is usually the liability, property damage, and uninsured motorist for licensed drivers who do not own a vehicle. It covers the damage caused to another vehicle as well as property damage and if an uninsured motorist strikes the vehicle you are driving. It does not cover damage to the vehicle you have rented or borrowed nor does it provide coverage if the vehicle is stolen. Read more about named operator coverage and how to get it.

Also, if you have been required to file an SR-22 or FR-44 financially responsibility form, then the state may provide guidelines over what type of liability insurance you must have before driving a vehicle. Plus, most rental car agencies include state minimum insurance in the price of their rentals so you usually will not need coverage of this type.

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Why You May Need Non-Owner Car Insurance?

Those who need this kind of insurance policy include the following;

  • Have Valid Driver’s License
  • Do Not Own a Vehicle
  • Do Not Regularly Drive a Vehicle

Get Inexpnsive Named Operator Policy

For drivers who may not have a car currently, this is the type of policy that can maintain continuous insurance coverage. Having this type of coverage may allow you to experience discounted rates and prevent hikes in premiums that usually occur when people do not have insurance coverage.

This type of insurance is perfect for those who occasionally need to borrow a vehicle to go on trips. To have this type of coverage will provide some relief to those whom you borrow the car from because their insurance will not have to pay for damage caused to other vehicles. However, it does not pay for damage caused to the borrowed car or truck.

The cost of this type of car insurance does vary depending on your age, gender, and driving record. However, a non-owner car insurance policy generally saves a considerable amount because it is assumed that you are not driving on a daily basis, only on occasion.

This type of insurance is not for you if the following circumstances apply to you;

  • You own a vehicle
  • Listed as the primary driver of a vehicle
  • Using a vehicle for business purposes
  • Cannot get a valid license in 30 days

If any of the above applies to you, then you should not get named operator insurance coverage. Owning a vehicle and paying insurance disqualifies you from the named operator policy. Plus, driving a vehicle for business purposes means that a commercial non-owner policy is better suited for this particular situation.

In the end, getting named operator coverage can save you money in the long run if you are between vehicles. This means that you have coverage when borrowing a car from a friend, and your rates are not subject to being hiked if you have gone a certain period without paying for any insurance coverage.