You took a corner too fast. Your friend in the passenger seat wasn’t holding the “Oh-Shit” handle. The UTV tipped. They put their arm out (instinct). The roll cage crushed their arm. They need surgery ($50,000). Your insurance says, “We only have $25,000 for guest passengers.”
Key Takeaways
- Guest Passenger Liability: This is the specific coverage that pays for people sitting next to you.
- The “Family Member” Exclusion: Some policies exclude coverage for family members living in your household (assuming they are covered by health insurance).
- Low Default Limits: Powersports policies often default to state minimums ($15k or $25k). Medical bills in 2026 average $10k just for the ER visit.
- The Lawsuit: If your insurance caps out at $25k, your friend sues you personally for the remaining $25k.
The “Why” (The Trap): Sub-Limits
Insurers know passengers get hurt often.
The Clause:
“Liability coverage for guest passengers is limited to $25,000 per person.”
Even if your main liability limit is $100k, the “Guest Passenger” sub-limit might be lower.
The Investigation: Medical Bills vs. Limits
I looked at the cost of a broken arm in 2026.
- Surgery + Rehab: $45,000.
- Standard Progressive Policy: $25,000 limit.
- The Gap: $20,000.
- Who pays? You do.
Comparison Table: Protecting Your Friends
| Coverage Type | What it Pays | Recommended Limit |
| Guest Passenger Liability | Settlements/Lawsuits | $100,000+ |
| Medical Payments (MedPay) | Immediate ER bills (No fault) | $5,000 – $10,000 |
| Umbrella Policy | Catastrophic Injury | $1,000,000 |
[IMAGE: Graphic showing a medical bill for $50,000 next to a policy limit of $25,000, highlighting the “You Pay” gap]
Step-by-Step Action Plan
- Check “Guest Passenger” Status: Log in to your portal. Is “Passenger Liability” selected? Is it equal to your main liability?
- Buy MedPay: “Medical Payments” coverage pays out regardless of fault. It’s great for covering the passenger’s health insurance deductible so they don’t get mad and sue you.
- Safety Briefing: Tell passengers: “Keep arms inside. Hold the handle. Do not grab the cage.”
- Wrist Restraints: Install window nets or wrist restraints. They prevent the “arm out” injury.
FAQ
Can my wife sue me?
Technically, yes, but insurance usually excludes “Intra-family” lawsuits to prevent fraud. She has to use her health insurance.