Injured as a Passenger in a Car Accident: Who Pays?

If you were hurt riding in someone else's car, there is usually more than one policy that can pay, and you are not limited to the driver you were riding with. Passengers are almost never assigned fault, which is why passenger claims tend to have more available coverage than the drivers' own claims do. Which policy pays first depends mostly on whether your state runs a no-fault system or an at-fault one.

The policies that can respond

Before working out the order, it helps to see the full set of coverages that can be in play after a crash you were a passenger in.

• The liability coverage of whichever driver was at fault, which may be the driver you were riding with or the driver of another vehicle.
• Personal injury protection or medical payments coverage on the car you were riding in.
• Personal injury protection or medical payments coverage on your own auto policy, if you have one.
• Uninsured or underinsured motorist coverage, if the at-fault driver had no insurance or not enough.
• Your health insurance, which often pays alongside or after these coverages depending on your state and plan.

In a no-fault state, the car you were in usually pays first

No-fault systems are built so that injury bills get paid without waiting on a fault determination, and passengers are explicitly included. New York's Department of Financial Services describes its no-fault coverage as paying medical expenses, lost earnings, and other reasonable and necessary expenses for a driver or passenger injured in, or a pedestrian injured by, your car. Its coverage extends to the driver and all passengers injured in your car, to any pedestrians injured by your car, and to you and all relatives who reside in your household.

New York publishes what its basic coverage includes: a $50,000 limit per person, medical and rehabilitation expenses under fee schedules, 80% of lost earnings from work up to a maximum payment of $2,000 per month for up to three years, and other reasonable and necessary expenses up to $25 a day for up to a year from the date of the accident. Those are New York's figures. Every state running a no-fault or PIP system sets its own limits, and yours will differ.

No-fault also comes with a short notice deadline, which is the detail that catches injured passengers out most often. New York requires a claimant to file notice within 30 calendar days after the date of the accident, unless you can submit written proof providing clear and reasonable justification for late filing. Find your own state's deadline early, because a passenger who assumes the driver handled all the paperwork can miss it without ever seeing a form.

In an at-fault state, liability coverage does the work

Where fault governs, the at-fault driver's liability coverage is the main source of payment for a passenger's injuries, and it covers passengers regardless of which car they were in. The Texas Department of Insurance describes liability coverage as paying to repair the other driver's car if you caused the accident, and also paying the other driver's and his or her passengers' medical bills and some other expenses.

There is also often a faster, smaller layer available before liability is settled. Texas describes medical payments coverage as paying your and your passengers' medical bills, and notes that it also pays if you are hurt while riding in someone else's car or while walking or biking. PIP works similarly in Texas and adds lost wages and other nonmedical costs. That means a passenger may be able to draw on medical payments or PIP from their own policy even though their own car was parked at home.

If the at-fault driver had no insurance

This is where uninsured motorist coverage becomes the deciding factor. The National Association of Insurance Commissioners describes uninsured motorists coverage as protecting the policyholder directly and paying if you are injured by a hit-and-run driver or a driver who does not have auto insurance. Washington's insurance regulator notes that this coverage may help pay for damage and injury from a hit-and-run accident or a phantom vehicle, and that if you have the coverage you can file a claim with your own company.

As a passenger, check two places for it: the policy on the car you were riding in, and your own policy if you have one. Which applies and in what order depends on your state and on the policy language, so ask both insurers rather than assuming one rules out the other.

Practical steps for an injured passenger

• Get the insurance information for every vehicle involved, not just the one you were in.
• Report the crash to your own insurer even though you were not driving, since your own PIP, medical payments, or uninsured motorist coverage may apply.
• Ask each insurer directly which coverage is paying first and what the notice deadline is.
• Keep your medical records, bills, and proof of missed work. California's guidance for medical payments and uninsured motorist claims is that you must provide documentation of your loss, including injuries, medical expenses, and lost wages.
• Do not settle before you know the extent of your injuries, since some conditions take time to present.
• Keep a written log of who you spoke with, at which company, and on what date.

Claiming against a friend or family member

Many passengers hesitate because the at-fault driver is someone they know. It is worth separating the two things: a claim is made against the policy, not against the person's savings, and paying injury claims is what the liability coverage exists to do. The driver may see a premium effect from an at-fault accident, which is a real consideration to be honest about, but declining to claim does not undo the accident and generally just shifts the bills onto you. If the situation is complicated or the injuries are serious, a licensed attorney in your state can tell you how the claim would actually run.

The bottom line

As an injured passenger you are usually in a stronger position than either driver, because fault rarely attaches to you and several policies can respond at once. In a no-fault state, the car you were riding in typically pays your medical bills first through PIP, subject to a short notice deadline. In an at-fault state, the at-fault driver's liability coverage is the main source, with medical payments or PIP available sooner and in smaller amounts. If nobody involved had enough insurance, uninsured and underinsured motorist coverage on either your policy or the car you were in is the fallback. Report promptly, document everything, and confirm the specific rules with your state's insurance department.