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Texas insurance glossary

Named driver policy

A named driver policy is an auto policy that does not provide coverage for a person residing in the insured’s household unless that person is named on the policy.

Sources checked

That sentence is close to the statutory one. Texas Insurance Code § 1952.0545 defines the term and requires a written disclosure, in capitals, before an agent or insurer accepts any premium or fee for one — and again on each occasion a premium is taken.

The disclosure exists because the surprise is expensive. A licensed household member who is not named can be driving with no coverage at all, and the family finds out at claim time rather than at purchase.

Where a policy is cheaper than its neighbours by a wide margin, this is one of the first things to check on the declarations page.

Sources: Tex. Ins. Code § 1952.0545 — named driver policy disclosure; TDI rulemaking — named driver policy disclosure (2014). Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • Broad form Broad form is market slang for a non-standard auto policy that follows a named person across vehicles rather than insuring a listed car for a household.
  • Declarations page The declarations page is the summary at the front of a policy naming the insured, the vehicles or property, the coverages, the limits, the deductibles and the term.
  • Endorsement An endorsement is a document that changes a policy — adding, removing, restricting or clarifying coverage — and becomes part of the contract once it is issued.
  • Non-standard auto Non-standard auto is the market segment for drivers the preferred market declines or prices badly, after tickets, at-fault crashes, a lapse, or no prior insurance.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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