Do You Insure The Driver Or The Car?

When you buy insurance, are you getting the drivers insured or the vehicles insured?

Insuring The Car Or The Driver?

This question is not as simple as it seems at first. So I have to answer it in two parts.

• Are you asking this question because you want to buy a typical auto insurance policy to cover your family cars, and just want to know how an insurer will rate you?
• Are you asking this question because you just want to insure your driver’s license? Some people do not own a vehicle, but want insurance because they will drive other people’s vehicles. Others do own a vehicle, but want to make sure they are covered if they drive somebody else’s vehicle or a company car.

Typically, Insurers Look At Drivers And Vehicles

If you a buying a typical policy, that is mainly intended to cover your family cars, an insurer will consider the drivers and the vehicles when they assign a rate to you. Some vehicles are cheaper to cover than others. This may be because they are deemed safer, cheaper to replace, or fall into a lower risk category for other reasons.  Of course, the insurance company will also want to look at the driving history and age of the drivers on the policy.

When you purchase a typical policy, you are really insuring the vehicle. You may notice that all of the vehicles you own are listed on your proof of insurance card. However, insurers may charge rates based upon the car and the driver.

Insuring A License

This is a more specialized type of policy, called a Broad Named Form Operator (BNFO). Some people also refer to it as “insuring a license.” It insures the operator for any vehicles they drive if they own them or not.  It only provides liability insurance, and it only covers claims when the actual insured person is behind the wheel.

This policy insures the driver. It may be considered for people who own many cars that nobody else drives, or for people who do not even own a vehicle, but do drive cars or trucks that are owned by other people.

Remember that when most people think about auto insurance, they are thinking about vehicle insurance, and not driver’s insurance!