What is the Difference Between Passenger Liability Insurance and Driver & Passenger Accident Insurance?
2 Answers
Passenger Liability Insurance and Driver & Passenger Accident Insurance differ in the following aspects: 1. Different Definitions: Passenger Liability Insurance is purchased per seat, while Driver & Passenger Accident Insurance is divided into two types—"per person" and "per vehicle." 2. Different Insurance Coverages: Passenger Liability Insurance is a liability insurance, meaning compensation is only provided if the driver is at fault in an accident, resulting in bodily injury to passengers. Driver & Passenger Accident Insurance (per vehicle) is an accident insurance, covering all passengers in the vehicle regardless of who is at fault. 3. Different Compensation Ratios: Passenger Liability Insurance compensates based on the proportion of liability—100% for full liability, 70% for primary liability, 50% for secondary liability, 30% for equal liability, and no compensation if not at fault. Driver & Passenger Accident Insurance pays the agreed insured amount regardless of fault, as per the policy terms.
Passenger liability insurance is mainly an additional liability insurance in auto insurance, which covers the compensation for injuries or deaths of passengers (including the driver and passengers) in traffic accidents. For example, when we ordinary car owners buy a car, we often add this insurance. In case of an accident, it can cover medical expenses and the like. However, a drawback is that claims are only settled when the car owner is liable. In contrast, driving and passenger insurance is more like accidental insurance, purchased separately, and it provides more comprehensive coverage for various accidental risks during driving and riding, regardless of the liable party. For example, if I drive with friends and get injured in a minor collision, passenger liability insurance only covers those in my car, while driving and passenger insurance, if purchased individually, can provide coverage even when changing cars or riding in someone else’s car. It is recommended that you choose based on your driving frequency and habits. Those who frequently travel long distances should prioritize driving and passenger insurance, as it can also add extra protections like fracture allowances, unlike the more limited passenger liability insurance. Regularly reviewing your insurance policy can save you trouble.
