When you have a four-wheeled vehicle, you can sometimes drive with other passengers too. But have you ever considered how and will the passengers be covered by the insurance company in the event of a mishap or accident? Because most of us heard about the four-wheeler insurance that is legal in India, which covers the third party’s injury or property damages. But along with the third-party insurance, drivers should also consider themselves and the passengers in their four-wheeled vehicle.
So in this article, we will answer different questions to understand Passenger Coverage in Car Insurance in depth.
What is the Passenger Insurance Coverage?
As the name suggests, passenger insurance coverage gives the benefit that provides coverage to the passengers sitting in the vehicle at the time of the accident. It is an add-on benefit that does not come with the standard car insurance policy. But for the safety of the passengers and the drivers, it will be necessary to have passenger coverage by giving some additional cost with your base car insurance policy. In addition, your passenger coverage helps you cover the costs of the accident’s damages, including paying for medical expenses, losing wages, and other losses, including property damage and legal costs.
Important Factors About Car Insurance Passenger Coverage such as:
1. Passenger under-passenger coverage
A passenger travels either for personal or professional reasons in the insured vehicle other than a driver at the time of any mishap or accident, such as family members, friends, or clients. However, in some plans, drivers of commercial cars are also regarded as passengers in their vehicle, for which they get coverage under the same cover.
2. Passenger coverage required by law
If you think passenger coverage is required by law in India when buying a car insurance policy, then the answer is no. Still, according to the Motor Vehicles Act, of 1988, for buses, trains, or any other public transport, one should have to buy passenger coverage.
3. Passenger coverage limits
Depending on the policy and insurance company, passenger coverage has different limits. As some policies have a total coverage limit that applies to all passengers; others may have a per-person coverage restriction. It depends on the extent of the accident and the resulting damages. However, in some situations, an accident’s damages may exceed your insurance coverage limitations, and you may be personally liable for the difference.
4. What Doesn’t Fall Under A Passenger Cover?
In some cases, the insurance company is not liable to give coverage against the passenger, such as:
- Deliberate acts,
- Breaking car-driving rules such as not wearing a seat belt.
- Driving after drinking or drug usage
- Using your car for commercial business
- If the passenger was engaged in criminal activity or other
- Doesn’t cover your or the car insurance policy owner’s injuries or damages
Thus, read your policy carefully to know what is covered and what is not covered in this coverage.
5. Passenger coverage can be affected by who is driving your car.
Other than the car insurance owner, if someone else drives the car and gets into an accident, the coverage still applies, but the coverage limits can be affected.
6. Driving record or Passenger Coverage
When the driver has a bad driving record or a history of accidents or traffic violations, then the cost of this coverage can become higher for them as they have to pay a high premium, which is calculated by various factors, and driving record is one of them.
Advantages Of Passenger Cover In A Car Insurance Policy
Here are some of the benefits of Passenger cover, such as
- It protects passengers against accidents or injuries and helps them cover medical expenses, lost wages, and other damages.
- It gives comprehensive protection to the car insurance policy owner by giving enhanced coverage to the passenger in your car.
- It is protection against personal properties that will be damaged in an accident, such as phones, laptops, or more.
- It gives the owner and the passenger peace of mind because they are financially protected if something goes wrong.
It is important to have adequate coverage and add-on benefits that give comprehensive coverage to your friends, family, unnamed passengers, and car. You can also consider bumper-to-bumper car insurance, which gives you 100% protection for your car. Understand that if the passenger sits in your car, their safety becomes your responsibility. Thus, while buying a car insurance policy, you should consider the passenger coverage and read all the terms and conditions carefully to know what is included and excluded from the policy and the coverage.