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Coverage for Passengers vs Drivers in a Car Insurance Policy

By Vikas Chandra Das
26 September 2022, 4:20 PM

While you are driving along, suddenly, another automobile collides with your car's rear. You provide your insurer with the necessary insurance details and submit a claim, but what actually is covered under your policy?

When it comes to automobile insurance, policyholders may choose from a variety of different coverage options to best suit their needs. The coverage an insurance policy provides to a driver as opposed to a passenger in a vehicle is quite different and will be the subject of discussion in this article.

It is critical to have a solid understanding of how a vehicle insurance policy addresses the responsibilities of the driver against those of the passengers in the event of an accident.

Car Insurance Coverage for Drivers and Passengers

When it comes to car insurance, there is a big difference between the coverage that is available for drivers and passengers. Drivers are typically covered under their car insurance policies, while the driver's policy covers passengers. If you are involved in an accident as a driver, your insurance company will be responsible for paying damages. However, if you are a passenger in an accident, the driver's insurance company will be responsible for paying for the damages.

Here's a quick rundown of the types of coverage differences.

Owner-Driver Personal Accident Insurance

As the name suggests, owner-driver personal accident insurance covers the expenses incurred by the policyholder in case of an accident. Owner-driver personal accident insurance covers medical expenses, disability, and death benefits. It also covers the cost of repairing or replacing the damaged vehicle. Furthermore, this insurance is compulsory in all states.

Coverage for Paid Drivers' Accidents

The coverage for the driver is usually called liability insurance, while the coverage for the passengers is called personal injury protection (PIP) or medical payments coverage.

Liability insurance covers damages to other people and property if the insured driver is at fault in an accident. It does not cover the driver's damages. PIP or medical payments coverage pays for the insured driver's and passengers' medical expenses, regardless of who is at fault in an accident.

Read more - All About Passenger Cover in Two-wheeler Insurance Plans

Passenger Cover Insurance

The passenger cover in car protects the passengers travelling in the car against any financial losses from an accident. This kind of insurance covers medical expenses and death benefits only. It does not cover any damage to the vehicle. Passenger cover is optional in most car insurance policies. However, it is compulsory in some states.

In nearly all cases, your comprehensive car insurance will cover the medical expenses for you and your passengers if you're involved in an accident. Most policies include personal injury protection (PIP) or medical payment coverage. The coverage will come as an add-on to your comprehensive car insurance policy for an additional premium.

Purpose of this Add-on Cover

If you're in an accident, this add-on cover protects you if the other driver is at fault and doesn't have car insurance or if an uninsured or underinsured driver hits you.

Is Driver and Passenger Cover in Insurance Mandatory?

Most car insurance policies will cover both the driver and passengers of the vehicle. However, it is not always mandatory to have this type of coverage. Passengers may sometimes be covered under a separate policy. It is also essential to check with your insurance company to see what types of coverage are available and what is required in your state.

Benefits of Driver and Passenger Cover

There are many benefits to having the driver and passengers covered under a car insurance policy. Some of them are -

  • It protects everyone in the vehicle, regardless of who is driving. This can be important in an accident where one or more people may be injured.

It can help protect your no-claim bonus (NCB), which without this cover, would get lost.

  • Driver and passenger cover can give you peace of mind when travelling as a passenger in someone else's vehicle.

Raising a Claim Under Driver and Passenger Cover

A car insurance policy protects the policyholder in the event of an accident. It covers medical expenses, damage to the vehicle, and other losses.

A car insurance policy has two types of coverage: driver and passenger.

Driver's coverage is for the policyholder who is driving the car. It covers medical expenses, damage to the vehicle, and other losses. To raise a claim in driver's coverage, the policyholder must contact the insurer and provide details of the accident. The insurer will investigate the claim and decide whether to pay or deny it.

Passenger coverage is for the passengers in the car. It covers medical expenses and other losses. To raise a claim in passenger coverage, the passenger must contact the insurer and provide details of the accident. The insurer will investigate the claim and decide whether to pay or deny it.

Summing up

A driver’s car insurance policy covers the driver, while a passenger’s insurance policy covers the passengers. Both policies cover property damage, but the driver’s policy also covers medical expenses.

The coverage provided by any online car insurance policy depends on several factors such as the type of policy, the insurer, the state where the vehicle is registered, etc. It is essential to compare different policies before buying one from the best car insurance provider in India.

Read more - Driver's and Passenger's Car insurance Coverage


1. What is covered under passenger cover?

Passenger coverage in your automobile insurance policy is an important advantage since it helps pay medical bills for passengers in your vehicle in the case of an accident. This coverage also covers your family's needs if you die as a result of the accident. In other words, it will lower your financial responsibility while also protecting you and your passengers. 

2. How do you make a passenger claim?

If you're a passenger in an accident, your insurance will normally cover your medical bills. You can make a claim against the other driver's insurance or even your own. Remember to get the insurance details of any other drivers involved if you are a passenger in an accident. Take pictures of the accident site and request a copy of the police report. As evidence of your injury, save all medical documents and lost pay.

3. Will passengers be charged for third-party insurance?

Passengers may be covered by car insurance coverage, but there are a few things passengers should be aware of first. For starters, passengers cannot be charged for third-party insurance. If you are the driver, you will require personal accident insurance. Third-party insurance may cover you in the event of an accident involving another person. 

4. How much does passenger insurance cost?

It is up to the insurance provider to decide. The added expense of passenger insurance is based on the policy's amount and the insurer chosen. 

5. If a collision occurs while travelling in an automobile, does full coverage insurance pay for the damages?

If you purchase the optional passenger cover, your insurance carrier will contribute financially to the cost of medical care for any travellers injured in your vehicle.


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