Insurance Policyholder - Auto Insurance

What is an Insurance Policyholder in Car Insurance?

<lingo>An insurance policyholder is someone who owns an auto insurance policy. All auto insurance policies are essentially contracts between policyholders and insurance companies. The insurance policyholder purchases the auto insurance and owns the policy. As a result, they have specific legal rights and responsibilities pertaining to the policy. Most importantly, the insurance policyholder is responsible for paying all premiums. In terms of rights, the policyholder has the right to change or cancel the policy, add or remove listed drivers, and file claims. Their name will be listed on all claims checks. An insurance policyholder is also sometimes called a “named insured.”</lingo>

Insurance policyholders clearly and briefly explained

Naturally, the insurance policyholder on an auto insurance policy will be included in the policy’s coverage, but it is also possible to add individuals to the policy. The individuals who may be added or removed at the will of the policyholder are usually called listed drivers.

<twitter>All auto insurance policies are essentially contracts between policyholders and insurance companies. </twitter>

It is also possible to have two insurance policyholders per policy. This usually happens with married couples. Both individuals are likely co-titled on their vehicles, and as such, they can be co-insurance policyholders. If a vehicle is owned by more than two people, it is generally impossible to have three policyholders, however. In this case, the third individual would be a listed driver or “additional insured” on the policy. 

Listed drivers are usually other individuals of driving age who live in the same household as the insurance policyholder (small children won’t be included on the policy). A married couple might list their 16-year-old son and 18-year-old daughter on their policy. These listed drivers are covered under their parents’ coverage, but that’s where their rights stop. Listed drivers cannot make changes to the auto insurance policy, nor can they receive claim payouts in their name. This is true even when a covered event occurs when the listed driver was driving.

Being the insurance policyholder on an auto insurance policy often means that you must be the title owner of the insured vehicle, but this is not always the case. Refer to your specific insurance company’s policy on to learn more.

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