If you’ve ever purchased an auto insurance policy for yourself, you’re listed as the named insured. The named insured driver is the person who purchases coverage and has their name listed on the policy declarations page. Sometimes, this is referred to as the policyholder, primary insured, or name of insured.

The named insured is responsible for paying premiums, filing claims with the insurer, and making changes to coverage — like adjusting policy limits, adding authorized drivers, or canceling the policy. Carriers calculate premiums based on the named insured’s driving record, credit history, location, and more. While the named insured is the policy owner and is often the primary driver, they’re not necessarily the only driver the policy covers.

Beyond the named insured, other drivers may be covered or listed on an auto policy. Because the terms used to identify those drivers can sound similar — like additional named insured driver, non-rated driver, and excluded driver — it’s important to understand the differences.

While the named insured owns and manages the policy, named drivers — also known as additional drivers — are insured under the policy, but they can’t manage or change the coverage. Named drivers are added to the policy with permission to drive the covered vehicles and share full coverage.

These additional insured drivers might include:

• Teenagers or adult children living in the home

• Unmarried partners

• Spouses who have their own auto insurance policy elsewhere but have access to your vehicle

• Other family members who live with you

• Drivers who don’t live in your home but regularly drive your vehicle (like a close friend, nanny, or caretaker)

An authorized or named driver on an auto policy is considered a rated driver, meaning their actions can affect your premium for coverage. Just adding another driver could raise your rates. If they get into an accident, get a speeding ticket, or have their license suspended for moving violations, you may see an additional increase in your cost of coverage.

Some insurance policies, known as named driver policies, offer cheaper premiums by limiting coverage only to drivers named on a policy. These have been restricted in some states and are banned outright in Texas.

Tip: To save money on auto insurance, it’s a good idea to shop multiple companies for quotes. Also, consider bundling your auto policy with your renters or homeowners insurance for a possible discount.

A non-rated driver is an individual who lives in your home or occasionally drives your vehicle but won’t affect your policy’s premiums. Also known as listed or list-only drivers, these individuals may have regular access to your vehicle but either don’t drive it often or have their own insurance coverage.

Examples of non-rated, list-only drivers:

• Unmarried partners

• Roommates

• Deployed military family members

• Adult children who are temporarily living with you

When someone is added as a non-rated, listed driver, they may be allowed to borrow your vehicle on occasion, but aren’t expected to drive your car regularly.

Your insurance company may ask for proof that a list-only driver has their own vehicle and/or valid insurance coverage. Because these drivers have their own valid coverage, they won’t be taken into consideration when calculating the premiums for your policy.

Most traditional auto insurance policies extend coverage to permissive drivers — the occasional drivers who might borrow your vehicle, such as your best friend. These are non-rated drivers: Their driving history and other rating factors are not included in your rate calculations. But if your friend borrows your car and causes an accident, your liability insurance should cover the damage as long as they had your permission to use the car.

Learn more: What to do after an accident: A step-by-step guide

Most insurers consider someone a permissive driver only if they don’t have the same address as the policyholder, and they drive the vehicle no more than 12 times a year. Each time they enter and exit the vehicle counts as a trip. For example, if your friend borrows your car to go grocery shopping, that would count as two trips.

In some states, insurers can offer cheaper premiums by reducing coverage for permissive drivers through provisions known as step-down clauses. The coverage limits enjoyed by named drivers don’t apply; instead, coverage is limited to the state minimum.

An excluded driver is a member of your household you explicitly tell your insurance company not to cover under the policy. When someone is named as an excluded driver, this person’s driving history and other risk factors won’t be factored into your rate. This may be beneficial if you have roommates who aren’t allowed to use your car, for example, or live with someone who has a poor driving record.

Use caution: Once a driver is excluded from coverage, they aren’t allowed to drive your car, even on occasion. If they drive your vehicle and get into an accident, your insurance will not cover any losses unless you prove that they stole your car. You could also be held liable for any damage or injuries that occur.

Excluding a driver is different from just removing a driver from your auto coverage, however. When you remove a driver from your policy, you’re telling your insurer that the person no longer lives in your household. Usually, that person is still allowed to drive your vehicle occasionally, and damages would be covered by your policy if they’re in an accident while operating your car — unlike a driver who is outright excluded.

If you live with someone else or another person regularly drives your car, you’ll probably need to list them on your auto policy. Not all added drivers fall into the same category, though. For example, your insurer may count a roommate with their own vehicle and insurance, but occasionally borrows your car as a list-only driver (meaning they won’t affect your premiums).

You can typically add drivers to your policy by calling your insurer or logging into your account on its website. If you’re adding a named driver to your policy, your insurance company may ask for their date of birth, driver’s license information, and their vehicle identification number (VIN) if you’re covering their vehicle under the same policy.

Always ask! If you have questions about whether someone needs to be a named driver or listed as a driver, call your insurance company or consult an insurance agent. Since insurers typically investigate when a driver not listed on your policy is involved in a crash, make sure you properly list drivers to avoid your carrier denying a claim.

Insurers usually require you to have a financial stake (known as an insurable interest) in any vehicle you insure — since most people take better care of things they own. However, some insurance companies offer non-owner auto insurance policies that provide liability coverage for injuries and property damage caused while operating a vehicle you don’t own. Non-owner auto insurance is an option you might consider if you frequently borrow a vehicle, rent cars, or use car-sharing services.

What's the difference between named insured and insured driver?

The named insured is the auto insurance policy owner, whereas an insured driver is anyone covered by the policy. Insured drivers typically include the policyholder, other drivers listed on the policy, and anyone who drives your car with permission.

What happens if my girlfriend is driving my car and gets in an accident?

As long as your girlfriend has permission to drive your car and isn’t listed as an excluded driver on your policy, your insurance would likely cover injuries and damages if she’s at fault for the accident. That’s because auto liability insurance typically follows the car, not the driver. If your policy limits aren’t high enough to cover the damage — for example, if the crash caused $40,000 in damage, but your policy’s property damage liability limit is $30,000 — her insurance may kick in as secondary coverage.

But keep in mind that your insurance company could deny the claim if your girlfriend should have been a named driver on the policy — maybe because you live together or she regularly drives your car.