What is a defining feature of a "named driver" policy?

A named driver policy specifically provides coverage only for individuals who are explicitly listed on the policy. This feature is significant because it limits the scope of who is insured under the policy to those individuals whose names are mentioned. This means that if an individual not listed on the policy drives the vehicle, they would not be covered in the event of an accident.

This can be beneficial for reducing insurance costs, as the insurance provider may assess a lower risk when only certain drivers are covered, often leading to lower premiums compared to broader coverage options. However, it also places a restriction on who can operate the vehicle safely and legally under the policy's protection.