Insurance Car Insurance Car Insurance Basics Learn About an Additional Insured on an Auto Policy By Emily Delbridge Emily Delbridge Twitter Emily Delbridge is an authority on car insurance and loans who contributed to The Balance for nine years. Delbridge is a licensed Personal Lines Insurance Agent who has been in the insurance business since 2005. Since joining the industry, she has significantly contributed to the book of business for independent agency, Great Michigan Insurance. learn about our editorial policies Updated on May 30, 2022 Reviewed by Anthony Battle Reviewed by Anthony Battle Anthony Battle is a CERTIFIED FINANCIAL PLANNER™ professional. He earned the Chartered Financial Consultant® designation for advanced financial planning, the Chartered Life Underwriter® designation for advanced insurance specialization, the Accredited Financial Counselor® for Financial Counseling and both the Retirement Income Certified Professional®, and Certified Retirement Counselor designations for advance retirement planning. learn about our financial review board Fact checked by Hans Jasperson Fact checked by Hans Jasperson Hans Jasperson has over a decade of experience in public policy research, with an emphasis on workforce development, education, and economic justice. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states. learn about our editorial policies In This Article View All In This Article Additional Insured vs. Listed Driver Who Is Added As an Additional Insured? Being Listed as an Additional Insured When an Additional Insured Should be Removed Photo: Maskot / Getty Images You might come across the term "additional insured" when you're reviewing your personal auto policy's insurance paperwork. Or maybe someone has requested to be added to your policy. It's important to understand the term and its implications before you commit. An additional insured is someone who has partial ownership of an auto or is liable for an auto that's insured by another party. A driver on a policy is not automatically an additional insured. Key Takeaways An additional insured is an auto's partial owner or who is liable for an auto insured by someone else.A driver who is listed on the policy is not the same as an additional insured.Additional insured parties are often co-owners on the title or leaseholders, or they're driving vehicles that are owned by someone else.A listed driver isn't eligible for the compensation that's granted to an additional insured. Additional Insured vs. Listed Driver An additional insured is not the same as a listed driver. Don't assume that you'll be compensated for a loss because you are listed on someone's policy as a driver. Only named insureds, loss payees, and additional insureds are listed on insurance claim checks for total losses. The additional insured must have ownership of one or more of the vehicles on the policy. They may or may not drive the auto, depending on whether they're listed as a driver or have insurance elsewhere. The listed driver could have no ownership of the auto. They could be its primary operator or even just occasionally drive it. Who Is Added As an Additional Insured? Naming an additional insured can depend on the ownership of the vehicle. Co-Titled Vehicles These often have an additional insured if the two people on the title aren't married or listed as named insureds together. Your grandparent would be listed as an additional insured if they cosigned on a car loan for you and doesn't live in your household. They don't have to be listed as a driver. They live out of the household and probably have their own car insurance policy. Note As part-owner of the car and an additional insured, they're entitled to compensation after a total loss if both of you owe less than the actual cash value of the vehicle. Leased Vehicles Leased autos should always have the lease company listed as both the loss payee and additional insured. This is sometimes referred to as a combination. The lease company acts as both the lender and the owner of the vehicle in this case. It would receive the claim check in the case of a total loss. Gap insurance is often included on leases, so you won't have to worry about an out-of-pocket expense. The Owner Isn't the Named Insured Not many insurance companies allow people to insure vehicles they don't own. Preferred carriers are often very strict about this rule. They only allow insurance to be held in the name of the person on the title. But some standard and non-standard insurance companies don't have any restrictions on who insures a vehicle. The claim check will go to the insured unless you're listed as an additional insured if you allow someone to insure your auto and physical damage protection is purchased. The Purpose of Being Listed As an Additional Insured The additional insured is notified when a change is made to the vehicle. They're notified if coverage is reduced to storage insurance. The same goes if the vehicle is removed from the policy or coverage is added or reduced in any way. It keeps the additional insured in the loop when it comes to insuring the auto. Note Additional insureds are included in claim payouts. The additional insured's name is on total loss claim checks as an owner of the insured property. When Should an Additional Insured Be Removed? An additional insured is only removed when the name is removed from the title. They should be removed right away because the additional insured has no interest in the vehicle after its sale. Having an additional insured listed on the policy can delay the transfer of an auto's title if it's not first removed. The owner of the vehicle is entitled to compensation if the coverage is correct and the owner owes less than the actual cash value of the vehicle. It's key to know how having an additional insured works, whether you're the additional insured or you need to add someone to your policy. Make sure the additional insured is listed properly on your policy. Check your declaration page or ask your agent. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Insurers of Tennessee. "Who Should You Be Listing As a Driver?" American Bar Association. "Definitions and Comparisons of Commonly Used Titles." Pages 1-2.