Glossary

Named driver policy

A car insurance policy that covers only the drivers specifically listed on it, rather than anyone who borrows the car with permission.

Also called: named operator policy, listed driver policy

A named driver policy covers only the people listed on it as drivers. If someone who is not listed drives the car and crashes, the insurer may deny the claim, or limit payment to the state minimum where state law requires coverage for permitted drivers. It is the opposite of a standard policy with broad permissive use coverage, which typically covers anyone you let drive occasionally.

Insurers, often nonstandard and low-cost carriers, use this structure because it lets them price precisely for known drivers. Say a policy lists you and your spouse. A crash while your spouse is driving is covered; a friend who borrows the car for an afternoon may not be, even with your permission. A related product, the broad form named operator policy policy, covers one named person in any car they drive rather than a particular vehicle.

The risk is easy to miss, because many drivers assume insurance always follows the car. Before lending your car, read the "who is covered" section of your policy and your declarations page, and list every regular driver in your household rather than relying on permission. Some states restrict how far insurers can limit coverage for drivers using a car with permission. See who is covered on your car insurance policy and excluded driver.

Last reviewed October 4, 2026

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Related terms

Permissive use Coverage for someone who drives your car with your permission but is not listed on your policy, typically on an occasional basis. Excluded driver A specific person listed on a policy as not covered to drive the insured cars, often used to keep a high-risk household member from raising premiums. Household member A person who lives in your home, usually a relative, whom auto policies often cover automatically and may require you to list. Named insured The person or business listed by name on the declarations page as the policy's owner, with the broadest coverage and most rights under the contract. Broad form named operator policy A low-cost liability policy that covers one named driver in any car they drive, rather than covering a particular car and its drivers. Nonstandard auto insurance Coverage sold to drivers that standard insurers decline or price steeply, such as those with DUIs, many tickets, lapses or little license history.

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Nonstandard auto insurers: who they serve and what to watch Nonstandard auto insurers cover drivers with violations, lapses, SR-22s or thin credit. The main companies, how policies differ and what to check. What you give up with the cheapest car insurance policy The cheapest car insurance quote usually saves money by cutting limits, coverages, policy features or service. Here is what to check before you buy it. Who is covered on your car insurance policy Who your auto policy protects: named insureds, spouses, household family members, listed and excluded drivers, and friends who borrow your car.