Glossary
Broad form named driver, defined
A minimal auto liability policy, sold in a few states, that covers one specific person while operating any private passenger vehicle, and nobody else. It follows the person, not the car, and it carries no coverage for the vehicle itself, for passengers in some versions, or for other people who drive the car.
In practice
It exists to satisfy a financial responsibility filing or licence reinstatement at the lowest cost, and it is priced accordingly. Everything about it is narrow: spouses and household members are not covered unless separately listed; medical payments, uninsured motorist and physical damage coverage are typically unavailable or limited; and the limits are usually the lowest available. Lenders will not accept it on a financed car. Availability varies by state, so confirm with the carrier whether the product is offered at all before assuming it is. For most people a standard policy with a listed driver is not much more expensive and closes the gaps. It is a stopgap for a specific situation, not a plan.
A worked example
Suppose a man needs an SR-22 filing after a suspension and buys one of these policies for $60 a month, naming only himself. Suppose his wife borrows the car and rear-ends someone, causing $8,000 of damage; the policy does not respond because she is not the listed person, and the car itself is not covered under any circumstances. Hypothetical figures.
Applies to: Auto Insurance