A component of auto insurance.
Class 1 coverage applies to the policyholder, who usually also owns the vehicle. Class 1 also covers spouses, children, and other relatives. However, what if friends, business colleagues, or other guests are passengers in a vehicle that gets in an accident? This is where Class 2 insurance comes into play.
The primary difference between the two is that parties who are pedestrians and are hit by a vehicle are also covered under Class 1, but Class 2 is solely for passengers. So if you get out of the car with your friends in a parking lot and are scared of getting hit by the drunk driver weaving towards you, you are covered...but your friends are on their own.
