What is an auto insurance policyholder? (2024 Full Details)
What is an auto insurance policyholder? An insurance policyholder manages the policy and pays premiums, with rates starting at $80/month. This article explains the policyholder's role, including how to add drivers to an insurance policy and make insurance payments.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
UPDATED: Nov 23, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 23, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
What is an auto insurance policyholder? A policyholder is the individual who owns and manages the insurance policy, pays the premiums, and selects coverage.
This article breaks down the key responsibilities of a policyholder, from adding drivers to adjusting coverage limits. Understanding the role is essential for keeping control over your auto insurance, ensuring you have the right protection, and knowing who’s responsible for payments and changes.
With this knowledge, you can make informed decisions and keep your policy working for you. Compare auto insurance quotes today to see how much you could save on your policy. Enter your ZIP code to begin.
- The policyholder pays and manages the auto insurance to maintain coverage
- A policyholder is also known as the named driver for an auto insurance policy
- The insurance policy owner’s identity is included in the policy’s basic information
Understanding the Role of an Auto Insurance Policyholder
The meaning of policyholder for car insurance is the main person listed on the policy who pays the bill and manages coverage amounts.
Auto Insurance Policyholder Cost by Provider
| Insurance Company | Monthly Rates |
|---|---|
 | $160 |
 | $117 |
 | $139 |
 | $80 |
 | $174 |
 | $115 |
 | $105 |
 | $84 |
 | $153 |
 | $99 |
It is quite common these days for more than one licensed driver of a vehicle to be covered by the same auto insurance policy. This is especially true for families that have multiple drivers living in the same house who don’t have separate policies. You can view your auto insurance policy online to add additional drivers, such as the policyholders’ teenaged children, making them insured while driving the vehicle.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Key Role of the Policyholder in Premium Payments
The most important people for a vehicle insurance policy are the policyholders because they are the insurance customers and are essentially in charge of the policy and responsible for the payments.
If there are other drivers of the vehicle on the same policy, these drivers are considered listed drivers and not policyholders. This means that their driving records and credit scores are considered in terms of the price of the policy, but they are not the actual holders of the policy and not responsible for any premium payments, nor will any claim be paid to them.
The primary insurance policyholder holds full authority over adding drivers and adjusting insurance coverage.Michelle Robbins Licensed Insurance Agent
The party will be listed as a driver of the vehicle in the policy details and insurance documents, and they can get a copy of your auto insurance card to provide proof of insurance as a driver.
Managing Coverage for Your Vehicle
A listed driver can get coverage through the same policy, but they cannot actually make any changes to it.
While a person who is just listed as a driver on a car insurance policy has the right to drive some or all of the cars covered by that policy, they are not an authorized person who can determine the status of any other driver on the policy, file claim forms, check claim status updates, access billing details, change the terms of the policy with a customer service agent, or request services from the policyholder service center.
A new teen driver is a good example of a driver who should just be listed on another car insurance policy because it would be far too expensive to insure that driver separately. You can also help teen drivers get their first license and add them to an existing policy for coverage.
Key Responsibilities of an Auto Insurance Policyholder
The most important responsibility that policyholders have is to make sure that the monthly or semi-annual payments are paid for the policy. If the policyholder fails to do this or does not do it in a timely fashion, then all coverage under the policy could be canceled.
In exchange for the price that the policyholder pays, the auto insurance company agrees to cover certain losses, such as damage to a car listed on the policy. There may be certain exclusions for coverage, which could be found in your car insurance policy documents.
As the policyholder, you can also make decisions about the types of auto insurance coverage that you should have on your policy. You can request to increase your coverage amount above the current policy limits that you have.
You can also add other products, such as the following:
- Underinsured Motorist Coverage
- Comprehensive Coverage
- Collision Coverage
It is strongly encouraged that you buy more than just the minimum insurance required to legally drive in your state.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Managing Your Auto Insurance: Policyholder vs. Listed Driver
You will have to carefully consider whether a driver should be added to a car insurance policy that you own.
If you are the policyholder, then adding a driver to your policy could mean that your bill for car insurance goes up. If a listed driver has a poor driving record, this could mean that you are in for an even bigger increase in your bill.
You can always choose to drop a listed driver from your policy at any point. You may want to consider doing this if the listed driver moves out of your house or is no longer driving one of the cars that are listed on your auto insurance policy.
You should also be aware of any regulations in your state on how many drivers can be listed on certain auto insurance policies and whether those drivers need to have their own separate policy.
Your auto insurance company will almost certainly have its own set of regulations on this, too.
When you request quotes for auto insurance rates, be sure to ask the best auto insurance companies what effect adding another driver will have on the rate that you pay.
Oftentimes, you will be asked by the insurance company to list all of the other drivers that live in your house so that they can determine your relative risk as a driver. This is a good time to ask about listing another driver.
Understanding Your Role as an Insurance Policyholder
Being a car insurance policyholder means that you are the owner of an auto insurance policy and may also be referred to as the named driver in the policy details.
If you are married, then it is likely that both you and your spouse are considered the named drivers on a policy. You may want to explore the best auto insurance companies for married couples to find policies that suit your needs.
Where do you start when you need auto 🚗insurance? Start with deciding how much 📊coverage you need. Not sure what that is? Check out this guide and shop with confidence👉: https://t.co/F4he3XKI34 pic.twitter.com/d630yHVca5
— AutoInsurance.org (@AutoInsurance) June 23, 2024
You may also have listed drivers on your auto insurance policy, which basically means that those drivers have permission to drive the cars listed on your policy.
Enter your ZIP code in our free comparison tool below to see how much you could save on your premiums.
Frequently Asked Questions
What is an auto insurance policyholder?
An auto insurance policyholder refers to the individual or entity that holds an auto insurance policy with an insurance company. The policyholder is responsible for paying premiums and receives the benefits and coverage outlined in the policy, including options from the cheapest auto insurance company.
Can anyone be an auto insurance policyholder?
Generally, anyone who owns or legally operates a vehicle can be an auto insurance policyholder. This includes individuals, families, businesses, and organizations. However, specific eligibility requirements may vary depending on the insurance provider and the type of policy being sought.
Can an auto insurance policyholder change their insurance company?
Yes, auto insurance policyholders have the right to switch insurance companies if they are dissatisfied with their current provider or find a better offer elsewhere. However, it is important to review the terms and conditions of your existing policy, including any cancellation fees or notice periods, before making the switch. It is advisable to compare quotes and coverage options from different insurers before making a decision.
Can an auto insurance policyholder add additional drivers to their policy?
Yes, auto insurance policyholders can add drivers to their policy. This is useful for families, but adding drivers may raise the auto insurance premium based on their age, driving history, and relationship to the policyholder.
Can an auto insurance policyholder cancel their policy?
Yes, an auto insurance policyholder can cancel their policy at any time. However, it is important to review the terms and conditions of the policy to understand any cancellation fees or notice requirements. It is also crucial to ensure that you have an alternative insurance policy in place before canceling the existing one to avoid a lapse in coverage, which could have legal and financial consequences.
Does the main driver have to be the policyholder?
No, the main driver doesn’t need to be the policyholder, but the policyholder must oversee payments and coverage.
What is the distinction between a policyholder vs named driver?
The policyholder owns and manages the policy, including making payments and coverage decisions, while the named driver is authorized to drive the vehicle but cannot make changes to the policy. Adding a driver to auto insurance allows the named driver to be included under the coverage but without policy management rights.
Can I be on my parents’ car insurance if I live in a different state?
Yes, but some insurers may require you to live in the same household. Check with your provider.
Find the best auto insurance rates no matter how much coverage you need by entering your ZIP code.
How does adding a driver to insurance affect the policy?
Adding a driver to insurance can increase your monthly premium, depending on the added driver’s age, driving record, and relationship to the policyholder.
Can I change the policyholder name on car insurance?
Yes, you can change the policyholder’s name, but the new policyholder must meet eligibility requirements and comply with minimum auto insurance requirements by state.
Can I be the policyholder on someone else’s car?
Yes, but the policyholder must have an insurable interest in the vehicle, such as regular use.
Can I insure a car that is not registered to me?
Yes, but only if you have an insurable interest in the car, such as being its primary driver.
Is a dependent a policyholder?
No, a dependent is not a policyholder. A dependent is typically a named driver or insured person listed on the policy, but they don’t manage or own the policy or have the ability to transfer auto insurance to another person.
Can the main driver be different from the policyholder?
Yes, the main driver can be different, but the policyholder is responsible for the premium and policy management.
Do additional drivers need their own insurance?
No, additional drivers don’t need their own insurance if they’re listed on an existing policy.
Can you change the main driver on an insurance policy?
Yes, you can change the main driver, but this may affect your monthly insurance rate due to factors that affect auto insurance rates, such as the driver’s age and driving history.
Does it matter who is the primary driver on car insurance?
Yes, the primary driver’s details influence the premium, so they should be accurately listed.
Does it matter who is the policyholder on car insurance?
Yes, the policyholder manages the coverage and is responsible for paying the premiums.
What is the difference between policyholder and insured person?
The policyholder owns and controls the insurance policy, including making payments and managing coverage, while the insured person is the individual covered by the policy but may not have policy management rights. The benefits of auto insurance apply to both, but only the policyholder can adjust coverage or payments.
Does the car insurance policyholder need to be the registered keeper?
No, the policyholder doesn’t need to be the registered keeper, but they should have an insurable interest in the car.
How much is it to add another driver to your insurance?
Adding another driver can increase your monthly premium, with rates depending on their driving history.
If a named driver has an accident, does it affect the policyholder?
Yes, an accident by a named driver may affect the policyholder’s premium and claims record, and it may also impact how long an accident stays on your record.
What is a secondary policy holder?
A secondary policy holder is a person who shares some rights in managing the insurance but is not the primary policyholder.
Who gets the no claims bonus, the main driver or the policyholder?
The no claims bonus typically applies to the policyholder, not the main driver.
What is the name for an additional family member who is covered by a policyholder’s insurance?
An additional family member on a policy is typically called a named driver, and you can add your child to your insurance policy as a named driver for coverage.
How do I know who the policyholder is on my insurance?
The policyholder is the individual whose name appears on the insurance policy and is responsible for managing the coverage and paying the monthly premiums.
Is the policyholder the same as the insured person?
Not always. The policyholder owns and manages the insurance, while the insured person is the individual covered under the policy, which could be different.
Explore your auto insurance options by entering your ZIP code into our free comparison tool today.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.