Back Named Non-Owner Policy

What is your advice on writing this kind of policy? What are the pros and cons? And when should an agent write such a policy? How is the insured protected?

What is your advice on writing this kind of policy? What are the pros and cons? And when should an agent write such a policy? How is the insured protected?

You don't say what state you're in. In Oregon we USED to have a 'Broad Form Named Operator' policy that covered the insured in ANY vehicle they operated, REGARDLESS of whether they owned a vehicle or the number of vehicles the insured owned. The problem that this developed was the insured would then loan the vehicle to a friend, tell the friend he had insurance and not that the vehicle was not insured. The insured does have a real problem in this case, that they may have an uninsured accident by lending the car to a friend who has an uninsured accident because the VEHICLE does not have insurance on it. This type of policy is no longer available in Oregon. We are able to write a 'Non-Owner' policy that should only be used if the insured needs an SR-22. In general that is the only way we write a non-owner policy. They still are required to notify us or the company when they acquire an owned vehicle. Gregcw, CIC

In Calif. the policy language is very specific regarding access to any non-owned vehicle. If the client has access at any time to cars on a regular basis, this is void the policy. In that case I insure the driver and car and name the registered owner as additional insured and in some cases put the LP on the policy. The few true non-owner policies I have written are for people, who live in cities like SF and LA where public transportation is easily accessable to them and they need an SR22 or want liability cov for that occassional car rental vacation.

Thank you for your reply! The state is North Carolina where I am an insurance agent. I appreciate your comments. They are very helpful!

In Calif. the policy language is very specific regarding access to any non-owned vehicle. If the client has access at any time to cars on a regular basis, this is void the policy. In that case I insure the driver and car and name the registered owner as additional insured and in some cases put the LP on the policy. The few true non-owner policies I have written are for people, who live in cities like SF and LA where public transportation is easily accessable to them and they need an SR22 or want liability cov for that occassional car rental vacation.

There is so much out there to learn. It is so helpful to get other people's thoughts especially from other states. Thanks again.