My question is about auto insurance.......?

Question

I live in a fault-based, or “tort liability" state. I have all the usual auto insurance, including $2000 per person medical payments and $50000 bodily injury liability.

If a passenger in my vehicle is injured in an accident that is my fault, and that passenger does not have health/medical insurance, and the hospital bill for that passenger's injuries exceed $2,000,- then I presume that passenger would want to sue me to recover the difference between their actual medical costs and the $2000 my insurance paid.

What kind of insurance would cover me if I were sued under these circumstances? Should the bodily injury liability insurance kick-in? My agent says no,-- that is for passengers in other cars, not in my car.

But it seems to me I should have some kind of insurance to cover this scenario. I mean after all, if that's the case, I should never carry a passenger unless I first verify they have adequate medical coverage in case of an accident?

As a follow up to my question- in this case the passenger is a family member, but not a family member that lives in my house. Should that make a difference?

Answer 1

Your best bet is just to increase that libility amount; otherwise consider an umbrella liability coverage that would also include what would happen at your home.

Answer 2

1. Get a new agent. If he/she tells you that your 50K BI limits won't cover you if your passenger sues you when you are at-fault they are an idiot. This coverage is for people you are responsible for injuring - doesn't matter what car they are in.

2. There are very few agents who understand how claims work. If you have an actual claim ask your adjuster. If you just want to know call your companies claim office and find somebody to help you.

3. In most Medical Payment states after your 2k in coverage is gone the passenger can then use the coverage off their own policy. If not, then the bills will be "covered" under the 50K BI coverage. HOWEVER, the 50K BI coverage will not pay the bills as they are incurred. They would be paid as part of the final settlement.

4. You do not need to look for another type of insurance to cover you in this situation. However, as a previous poster stated you should increase your limits. 50K doesn't cover much for injury claims these days.

Answer 3

Depending on your state - bodily injury coverage normally WOULD cover you if your passenger sued you, AND you caused the accident. I'm putting in the state qualifier, but normally it does. The only exception would be if the passenger is a household member - then it definately wouldn't cover.

In many states, health insurance policies won't pay until auto insurance policies have exhausted their medical limits - so it won't help you, in general, to ask if the passenger has health insurance.

Also, $50,000 bodily injury is NOT MUCH. You should talk to your agent about increasing the limits.

Answer 4

I was an insurance agent for fifteen years, and it's always been my understanding that your bodily injury liability would kick in after medical payments coverage if you were at fault, and as excess after the at fault party's coverage if you are not at fault.

I live in a no-fault state, though, so it may be different. In no fault states your personal injury protection pays first, then coverage applies in the order I stated above.

In response to the question you just added, if the passenger is a relative that does not live in your house they likely would be able to collect under your bodiliy injury - unless they are a dependent not living with you. For example, a child away at school is still cosidered a resident of your house unless they are truly emancipated (you don't pay for school or lodging - they are on their own). Same with children living with an ex-spouse. Hope that helps!

Answer 5

I am an agent in a no fault state, but the bodily injury liability coverage would definitely kick in, unless the passenger is a family member.

Answer 6

Bodily injury coverage is for those innocent persons who sustain bodily injury AS A RESULT OF YOUR NEGLIGENCE. The generic answer to your question is YES, your passenger has a bodily injury claim against YOU, that is offset by the Medical Payments. Your passenger has a 1st party claim under Med Pay, but a 3rd party claim under your b.i. coverage.

However, whether a resident relative has a claim against you depends on the law of your state. In CA, they do not have a claim. In NV, they do have a claim. It's called GBI, or guest bodily injury. If it's a NON RESIDENT relative (brother,sister, cousin, grandparent), they do have a claim against you regardless. If it's a spouse (you're seperated), again, it depends on the law of your state regarding one spouse recovering from another spouse.

If the passenger is a non resident, non relative, they have a valid claim regardless.

Your agent isn't the one to ask; the person to ask is the person who is handling your claim. Agents sell insurance, claims enforces the policy & are required to know the negligence laws of the state your policy was written in.

Answer 7

on account that drivers' licenses are state-issued, it relatively is a state matter, besides the incontrovertible fact that the federal government can impression the states via threatening to withhold Federal highway funds (the way they did to get each state to strengthen the ingesting age to 21). quickly, there's a philosophical distinction right here. driving is a priviledge granted via the State and whilst driving, one has a duty no longer in basic terms to himself, yet to others on the line. Making vehicle coverage mandatory might nicely be considered as a cost of enjoying this priviledge, portion of a voters duties for th ordinary risk-free practices of others. wellbeing care is a private subject. Requiring a man or woman to purchase a product for his very own very own use seems to many like requiring all voters to purchase vehicle coverage....regardless of if or no longer they force or no longer. Somewill argue that the requirement will deliver down the charges linked with the uninsured getting care in emergency rooms etc, however the comparable might desire to be stated for mandatory vehicle coverage. think of how rates might bypass down if all non-drivers have been compelled to purchase rules as nicely. So lower back, there's a philosophical subject previous the "will it deliver down expenses" question.

Answer 8

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