If You’re a Passenger in an Accident, Does Insurance Go Up?

When involved in a car accident as a passenger, a common concern arises regarding the potential impact on personal insurance rates. This article clarifies how passenger injuries are covered and when personal insurance rates might be affected, as general principles of insurance coverage are consistent across the United States.

How Passenger Injuries are Covered

When a passenger sustains injuries in a car accident, several layers of insurance coverage may apply to cover medical expenses and other damages. The primary source often depends on the type of insurance held by the drivers involved and the specific circumstances of the collision.

One common source of coverage is Personal Injury Protection (PIP) or Medical Payments (MedPay). If the host driver carries PIP or MedPay on their policy, these coverages typically pay for the passenger’s medical bills and sometimes lost wages, regardless of who was at fault. The passenger’s own car insurance policy might also include PIP or MedPay, extending coverage even when they are a passenger in someone else’s vehicle. These “no-fault” coverages are designed to provide prompt payment for immediate medical needs without waiting for fault to be determined.

Another significant avenue for compensation is the at-fault driver’s Bodily Injury Liability (BIL) coverage. If another driver is determined to be at fault, their BIL insurance covers medical expenses, lost wages, and other damages for injured third parties, including passengers. This coverage aims to compensate individuals for injuries caused by the policyholder’s negligence.

The passenger’s personal health insurance also plays a role in covering medical treatment. Health insurance can act as a primary or secondary payer for medical expenses incurred due to the accident. Often, health insurance covers costs after car insurance benefits, like PIP or MedPay, have been exhausted or if primary auto coverages are not available.

If the at-fault driver has insufficient insurance or no insurance at all, Uninsured/Underinsured Motorist (UM/UIM) coverage can be crucial. If a passenger carries UM/UIM on their own auto policy, this coverage can provide compensation for their injuries and other damages. UM/UIM acts as a safety net, protecting the passenger when the responsible party cannot fully cover the costs.

When Your Insurance Rates Might Change

The primary question for many passengers after an accident is whether their own car insurance rates will increase. Generally, if you are a passenger and not found to be at fault, your personal car insurance rates are unlikely to increase. Insurance premiums are primarily influenced by factors such as your driving record, your claims history where you were at fault, and the risks associated with your vehicle and driving habits.

Insurance companies typically evaluate risk based on whether the insured individual contributed to causing the accident. Since a passenger does not control the vehicle, they are generally not considered at fault for the collision itself. This distinction usually means the accident will not negatively impact their personal insurance premiums.

However, there can be rare scenarios where a passenger’s insurance might see a slight adjustment. If a passenger needs to make a claim on their own policy’s PIP/MedPay or UM/UIM coverage, their insurer records this claim. While these are typically considered “not-at-fault” claims, some insurers might view any claim as an indicator of increased risk or administrative cost. The impact of such a claim on rates is usually minimal or nonexistent compared to an at-fault accident, and many states have consumer protection laws limiting rate increases for not-at-fault incidents.

Steps for a Passenger After an Accident

Following a car accident, a passenger should take specific steps to protect their well-being and any potential insurance claims. Immediate actions can significantly impact the outcome of medical care and financial recovery. These steps focus on safety, documentation, and communication.

Medical Attention

The first priority is always safety and medical attention. Passengers should check themselves for injuries and, if able, move to a safe location away from traffic. Even if injuries do not seem immediately apparent, seeking medical evaluation promptly is important, as some injuries may have delayed symptoms.

Documentation

It is advisable to ensure that emergency services and the police are notified. A police report documents the accident, which can be essential for insurance claims and determining fault. Passengers should gather contact and insurance information from all drivers involved, as well as contact details for any witnesses. Taking photos or videos of the accident scene, vehicle damage, and any visible injuries can also provide valuable evidence.

Inform Insurer

Even though a passenger is typically not at fault, it is often prudent to inform their own insurance company about the incident. This notification allows the insurer to be aware of the accident and can be a necessary step if the passenger needs to utilize their own PIP/MedPay or UM/UIM coverage for medical expenses. This communication does not imply fault but rather ensures all potential avenues for coverage are recognized.