The basic difference between an owner’s policy and an operator’s policy is that an owner’s policy protects the owner as the named insured. Each policy type is suited to different needs, depending on vehicle ownership and driving habits.
Insurance companies’ policies and classifications of drivers can differ, but individual automobile insurance policies are generally classified as owner policies, operator policies or a combination of the two.
- Individual auto insurance policies are owner policies, operator policies or a combination of the two.
- Owner policies are designed for vehicle owners.
- Operator (non-owner) policies are intended for individuals who drive but don’t own a car.
What is an owner’s policy?
An owner’s policy protects the owner as the named insured and any other person using the insured vehicle with the owner’s permission. However, it doesn’t protect against liability resulting from the use of a motor vehicle not described in the policy.
What is an operator’s policy?
An operator’s policy, on the other hand, protects the named insured against liability arising from the use of any motor vehicle. So an operator’s policy is different than a standard owner’s liability insurance. This insurance coverage insures the driver or operator, not the car.
In other words, the driver or operator would be insured no matter what vehicle was driven. This insurance coverage would not cover another driver or person using your car with or without your consent.
Difference between operator and owner policies
Owner and operator insurance policies differ primarily in coverage scope and purpose:
- Owner insurance: Designed for vehicle owners, this policy covers both the vehicle and the driver, offering liability, collision, comprehensive and other protections for the car listed in the policy. It applies when the insured driver operates their own vehicle and is the type of policy one thinks of when it comes to a standard car insurance policy
- Operator (non-owner) insurance: Intended for individuals who drive but don’t own a car, this policy provides liability coverage when they drive vehicles they don’t own, like rentals or borrowed cars. Non-owner insurance doesn’t cover vehicle damage, focusing instead on liability for injuries or damages caused to others while driving. It is also referred to as non-owner car insurance.
When does an operator policy come into play?
Usually, this distinction is used when a company is required to file an SR-22 with the state on your behalf. The company needs to know which filing fits your situation. See below for a few options:
- Owner-operator SR-22 filing: Provides coverage to the vehicle listed on the policy and to the vehicles you drive that is not owned by you or a member of your household.
- Operator SR-22 filing: Provides coverage when you do not own a vehicle. It covers you when you drive any car or truck not owned by you or a member of your household.
- Owner SR-22 filing: Provides coverage when you own a car. Coverage is limited to only the car listed on the policy.
Guide: What is SR-22 insurance and how much does it cost?
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs