Named Insured
What Does Named Insured Mean?
The named insured is the listed owner of an insurance policy and is the only individual or entity recognized by the insurance company. The named insured can be a person or an organization. In most cases, only the named insured or the legal representative of the organization is authorized to interact with the insurer for matters such as policy modifications and claims.
Insuranceopedia Explains Named Insured
A policy typically has one owner, but in joint insurance, there can be two policyholders. The insurance owner, listed in the policy, is called the named insured. This distinction can lead to complications in some cases.
In a liability insurance policy for vehicles, the driver is covered. If the driver, who is also the policyholder, is involved in an accident, the insurance company covers the driver, not the vehicle. Family members are often implicitly covered, but a driver not listed on the policy is not covered. If someone else in the household will be using the car regularly, it’s worth learning how to add a driver to your car insurance so they aren’t left out in the event of a claim. Before picking your coverage limits, it also helps to work out how much liability insurance you actually need based on your state’s minimums and what you personally have to protect.
In a comprehensive vehicle insurance policy, the vehicle itself is covered, rather than the driver. Therefore, if the vehicle is involved in an accident, the insurer may pay for the damage, even if the car is not being driven by the policyholder or named insured at the time of the accident. Knowing the practical difference between comprehensive and collision insurance can help you understand what the named insured is actually paying for on each part of the policy.
