A provision in an insurance policy restricts coverage to only those individuals specifically listed on the policy. If an unlisted person operates the insured vehicle, the policy may not provide coverage for damages or injuries resulting from an accident. For instance, if a policy only names a husband and wife as drivers, and their teenage son causes an accident while driving, the insurer might deny the claim due to the exclusion of the son as a covered driver. This contrasts with policies that cover any licensed driver.
This practice is often implemented to reduce insurance premiums by limiting the pool of potential drivers, thereby lowering the insurer’s risk. It can be particularly beneficial in situations where a household has multiple drivers, but only certain individuals regularly operate the insured vehicle. Historically, this approach has allowed families to manage insurance costs while ensuring coverage for their primary drivers. The trade-off is that anyone not listed faces the potential for uncovered incidents.
