Car accidents can be very frightening events, and those events can be made even more frightening when a driver does not have any car insurance coverage or has inadequate car insurance. To protect the public and aid in preventing financial ruin, most states require that each motorist purchase liability coverage, which essentially provides a level of passenger car insurance.
In essence, car insurance goes beyond the need to protect the driver and his or her car; it also provides insurance coverage for passengers, whether they are riding in the car where the driver is responsible or they are either in another car or outside of the responsible vehicle. Having this type of coverage, also called liability insurance, is not only a law, but is deemed the responsible thing to do. In order to protect each other, purchasing passenger car insurance provides a much-needed safety net for the innocent people who are not responsible for an accident.
Passenger car insurance typically protects the passenger in three ways. The first type of coverage that benefits a passenger is bodily injury coverage. This kind of coverage pays for the passenger's medical bills that result from physical injury. The responsible driver's insurance will be accountable for the passenger's medical bills, both immediate and long-term. Additionally, passenger car insurance often pays for wages lost if the passenger has to be hospitalized or at home on bed rest for an extended period of time.
Furthermore, liability coverage can protect a passengers' personal property if it is damaged or destroyed in a car accident. While this extent of passenger car insurance may seem to be minor in nature or even unnecessary, if a passenger is wearing expensive jewelry or has a top-of-the-line computer or electronic equipment in the car, and it is subsequently damaged or destroyed, then the liability insurance will usually pay for the repair or replacement of these items. This extent of coverage minimizes both the insured driver's out-of-pocket risks and any financial impact for the passenger.
Passenger car insurance is not only a way to protect the passenger, but it provides a level of protection for the insured driver, as well. It is not out of the realm of possibility to incur over $100,000 for even a moderate level of medical bills for an injured passenger. Knowing that an accident will not financially ruin a driver, or his or her passenger, brings a level of comfort that is more than worth the minimal monthly costs designed to avoid financial disaster. Protecting the driver and the passenger by purchasing adequate passenger car insurance is not only a lawful act; it also provides financial peace of mind for everyone.