Does Commercial Auto Insurance Cover Passengers?
Although there are a few noteworthy differences, commercial auto insurance works very similarly to personal auto insurance. These policies share many common coverages—including coverage for passengers.
When it comes to medical bills, state coverages generally fall into two categories: medical payments coverage or personal injury protection (PIP).
Medical Payments Coverage vs. Personal Injury Protection
As part of a full coverage auto insurance policy, you can choose limits on medical payments. This type of coverage will provide compensation for injuries the driver and your passengers may face after an accident without accounting for fault. This means that even if you cause an accident, you and your passengers can still receive compensation for injuries.
The main difference between these two coverages is that personal injury protection offers further coverage such as wage replacement and is mainly required in no fault states. In most states, however, including North Carolina, medical payments coverage is available but not required.
The same applies to commercial auto insurance policies. As long as you gave the driver permission to operate the vehicle, they should be covered along with their passengers, such as clients.
Does Commercial Auto Insurance Cover Passengers in Other Vehicles?
Commercial auto insurance policies can also cover medical bills that face drivers and passengers of the other vehicle involved in the accident. This is covered by liability insurance, which is required by each state, although limits required vary.
In North Carolina, all vehicles personal and commercial must be insured with at least:
$30,000 in bodily injury liability per person
$60,000 in bodily injury liability per accident
$25,000 in property damage liability
This insurance helps cover medical bills and property damage a driver may cause someone else while operating the insured vehicle.
Minimum liability isn’t the only coverage your commercial auto insurance policies need, however. Medical payments coverage is not considered liability on your policy. Instead, it generally comes as part of a full coverage auto insurance policy. These policies may include:
Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the vehicle caused by fire, wind, hail, lightning, smoke, theft, vandalism and more.
Collision Coverage: Collision coverage provides compensation for damages to the vehicle caused by a collision with another vehicle or object.
Liability: Liability insurance covers bodily injury and property damage the driver may cause someone else while operating the insured vehicle.
Medical Payments Coverage: Medical payments coverage provides coverage for medical bills the driver and their passengers may face after an accident.