Simply put, the policyholder, also known as the policyholder, is the person who pays for and owns the insurance policy. The individual as the policy owner also reserves the right to make adjustments to the policy if necessary.
There are many options for car insurance. For example, in home insurance, the owner of the home is the policy holder.
The same goes for rental car insurance. The lessee is the policy holder. But car insurance is different.
How does this work?
Now that it's clear that auto insurance policyholders are different from other types of insurance policies, let's understand how it works.
Let's put it this way. Jack bought an insurance policy. This would make him the de facto policyholder. However, this in no way means that Jack is the only person covered by that particular policy. In the case of auto insurance, Jack reserves the right to extend coverage to any blood relatives who live with him and drive the vehicle from time to time. Such Covered Persons are often referred to as Listed Drivers.
Differences between listed drivers and policyholders.
As with other types of insurance, with auto insurance, the policyholder is the sole owner of the auto insurance. However, unlike other insurances, he is not the only beneficiary.
However, it is important to note that the right to make adjustments to the policy rests entirely with the policyholder. Listed drivers benefit only from benefits agreed to by the policyholder.
What should you be covered as a policy holder?
As a policyholder, you must choose the coverage below.
Liability insurance comes in handy if you cause personal injury or property damage while driving. Both scenarios will cost you an arm and a leg if they become a reality. However, liability insurance will help you avoid financial hardship caused by any of the above.
While liability insurance will pay for each other's damage, collision insurance will help you pay for damage done to your car and sometimes even a replacement car.
The Bottom Line.
As an auto insurance policyholder, it is in your best interest to add more types of coverage. The more the better. You may need to add gap insurance and roadside assistance to make your policy more thorough.
Also, if your partner decides to take over the policy, the process is very simple. All you have to do is contact the insurance company and they will be happy to assist you.