Insured Driver vs. Named Insured

Attribute	Insured Driver	Named Insured
Definition	Individual covered by an insurance policy	Primary policyholder who is named on the insurance policy
Responsibility	May or may not be responsible for premium payments	Responsible for premium payments
Coverage	May have limited coverage under the policy	Has full coverage under the policy
Authority	May not have authority to make changes to the policy	Has authority to make changes to the policy

Definition

When it comes to auto insurance, there are two important terms to understand: Insured Driver and Named Insured. An Insured Driver is anyone who is covered by the insurance policy, while the Named Insured is the person who is listed on the policy as the primary policyholder. Both play crucial roles in the insurance process, but there are some key differences between the two.

Responsibilities

One of the main differences between an Insured Driver and a Named Insured is their responsibilities when it comes to the insurance policy. The Named Insured is typically the one who purchases the policy, pays the premiums, and has the authority to make changes to the policy. They are also the one who is legally responsible for ensuring that the policy is kept up to date and that all premiums are paid on time. On the other hand, an Insured Driver is simply someone who is covered by the policy and does not have the same level of responsibility as the Named Insured.

Coverage

Another important difference between an Insured Driver and a Named Insured is the extent of coverage they receive under the policy. The Named Insured is typically the one who determines the level of coverage, the types of coverage, and the deductibles on the policy. They are also the one who is financially responsible for any claims that are made under the policy. Insured Drivers, on the other hand, are covered by the policy but do not have the same level of control over the coverage or the financial responsibility for claims.

Liability

When it comes to liability, there are also differences between an Insured Driver and a Named Insured. The Named Insured is typically the one who is held legally responsible for any accidents or incidents that occur while driving the insured vehicle. They are the ones who may be sued in the event of a lawsuit related to an accident. Insured Drivers, on the other hand, are also covered by the policy in terms of liability, but they are not typically the ones who are held legally responsible in the event of a lawsuit.

Adding Additional Drivers

One important aspect to consider when comparing Insured Drivers and Named Insured is the ability to add additional drivers to the policy. The Named Insured has the authority to add or remove drivers from the policy, as well as to make changes to the coverage and deductibles. Insured Drivers, on the other hand, do not have the authority to make changes to the policy or add additional drivers without the permission of the Named Insured.

Conclusion

In conclusion, while both Insured Drivers and Named Insured play important roles in the auto insurance process, there are some key differences between the two. The Named Insured is typically the primary policyholder who is responsible for purchasing the policy, paying the premiums, and making changes to the policy. They also have control over the coverage and financial responsibility for claims. Insured Drivers, on the other hand, are simply individuals who are covered by the policy and do not have the same level of responsibility or control as the Named Insured. Understanding these differences can help ensure that you have the right coverage and protection in place for your auto insurance needs.