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    Commercial Truck Insurance
    What Is Passenger Accident Insurance?

    What Is Passenger Accident Insurance?

    What is passenger accident insurance and who should apply for one? Non-employee guest passengers can hold truck owner-operators and drivers responsible if they get into an accident. The trucking company will still shoulder the medical fees even if the passenger is their driver's friend or loved one. Also, guest passengers can bring the case to court if they don't receive just compensation.

    If you don't have the necessary liability insurance for your trucking company, you could end up paying tens of thousands out of pocket. Some motor carriers even go bankrupt after a single road accident. To ensure business continuity during these unforeseen events, make sure you have a passenger accident insurance policy.

    What Is Personal Passenger Accident Insurance?

    Passenger accident insurance policies supplement standard liability insurance plans. The policy covers an authorized passenger's injuries, dismemberment, and death stemming from a covered road accident.

    Policy coverage varies on a case-by-case basis, but they generally have the same groundwork. Insurers define an authorized passenger as someone accompanying the truck driver on a hauling trip. They have to be a non-employee over 18 years old—excluding independent co-drivers, truck company helpers, and hitchhikers.

    How Much Does Passenger Accident Insurance Cost?

    Insurers charge varying rates. For example, Progressive Commercial states that an all-encompassing coverage plan would cost truckers $600 to $900 annually. Meanwhile, Colonial Trucking Insurance has guest passenger liability plans starting at $10 per month. It all depends on what type of coverage you get.

    What Should You Look For In Passenger Accident Insurance Policies?

    We discourage truck operators from using minimum policies with generic benefits. Every motor carrier has varying needs. Identify the risk your truckers carry, compute the possible losses from a crash, then multiply that amount by how many trucks your company has.

    At Assured Standard, we have multiple resources explaining why independent owner-operators should incorporate insurance policies into their business continuity plans. Read our comprehensive guide for a good starting point on owner-operator insurance.

    Frequently Asked Questions

    What is physical damage insurance?

    Physical damage is a general term for a group of insurance coverages that protect your vehicle. This includes collision coverage as well as your choice between comprehensive coverage or fire and theft with combined additional coverage (CAC).

    How much do truck drivers pay for insurance?

    Truck drivers pay an average of $640 for insuring specialty truckers and $982 for transport truckers. Since these are just averages, always keep in mind that insurance companies rely on a range of factors to calculate your insurance rates and premiums.

    Are you liable for passengers in your car?

    In many cases involving a car crash with passengers, the driver is responsible for his passengers—including their injuries. In some instances where both drivers are at fault in an accident, a passenger may be eligible to receive compensation from insurers of either or both parties involved if they choose to do so.

    What does collision insurance pay for?

    Collision coverage helps pay for the repair or replacement of your vehicle if it's damaged or destroyed in an accident with another car, regardless of who is at fault. That's different from liability coverage, which helps cover the cost of damages you may cause to other people and their vehicles.

    What is considered an accidental injury?

    Accidental injuries are the result of accidental and anticipated causes. For example, an unintentional bodily injury resulting from any external force against what is expected could be categorized as an accidental injury.

    An extra insurance policy costs around a hundred bucks. Meanwhile, road accidents leading to the death or injury of passengers will set you back by over $100,000. An uninsured motor carrier startup might never recover from this loss. So even if most states do not require owner-operators or motor carriers to carry passenger accident coverage, we suggest getting one nonetheless.

    Assured Standard shares that trucking service providers can use insurance to mitigate financial damage from road accidents. Check out our comprehensive guide on getting a trucking insurance policy.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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