The Name Game

Make sure the name on your car registration and auto insurance policy match

You may have heard insurance agents say they want to help you get the right coverage at the right price. To do that, your agent needs all the correct and current information about who is driving the vehicle that you are insuring. Inaccurate information can lead to unpleasant coverage surprises if there’s an accident.

For an auto to be the “described auto” under a Shelter auto policy it must:

1. Be listed in the declarations; and

2. Be owned by the owner of the policy (the named insured).

There are two very important reasons for that requirement:

Physical Damage Coverages

Most states require that anyone who will financially benefit from an insurance claim payment must have an “insurable interest” in the insured property. This is because the insurance company pays the named insured for covered losses to an auto, not the person driving the auto, who may not be the named insured. After all, a person who doesn’t own the car may have no real interest in repairing it if it gets damaged.

Liability Coverage

Liability coverage is different. Anyone who drives a car (whether it’s their own vehicle, a vehicle they rent, or a vehicle they borrow) has an “insurable interest” in protecting themselves from resulting financial obligations. We insure those persons with “owners’ policies” or, if they don’t own the car, with “operators’ policies.” We do not, however, allow them to insure a car and then provide that same liability coverage to another person on a long-term basis without our knowledge.

Bottom line – let your agent know any time there is a change in ownership for any insured vehicle.

For more information, contact a local Shelter® Insurance Agent: Scott Comiskey, Bella Vista, 479-855-7774; Matthew Hillis, Bentonville, 479-273-7793; Jamie Carter, Bentonville, 479-8453657; Chris Taylor, Gravette 479-787-5421; Sean Garrison, Rogers, 479-621-0555; Derek Wardlow, Rogers, 479-631-0899