A Personal Auto Policy (PAP) is a type of insurance coverage designed to provide financial protection against physical damage or bodily injury resulting from traffic collisions, and against liability that could also arise from incidents in a vehicle. Personal Auto Policies are usually purchased by individual vehicle owners to insure private passenger automobiles, including cars, vans, and certain types of trucks owned by an individual or jointly by a husband and wife.
Key Components of a Personal Auto Policy
1. Liability Coverage
Bodily Injury Liability: Helps cover expenses from injuries you are at fault for during an accident.
Property Damage Liability: Helps pay for damage to another person’s property resulting from an accident for which you are responsible.
2. Physical Damage Coverage
Collision Coverage: Helps pay for damage to your vehicle if it hits another car or object.
Comprehensive Coverage: Provides financial protection against damage to your vehicle caused by events that are not collisions, like theft, vandalism, or weather conditions.
3. Medical Payments/Personal Injury Protection
Offers medigal coverage for treatment of injuries to the driver and passengers of the policyholder’s car.
4. Uninsured and Underinsured Motorist Coverage
Protects you if you’re harmed by an uninsured driver or by someone who does not possess sufficient insurance coverage.
Who Needs a Personal Auto Policy?
If you own a personal vehicle, having a Personal Auto Policy is essential to comply with legal requirements and to ensure you are financially covered in case of vehicle related accidents or incidents.
To adhere to and clearly understand the legal aspects and advice under specific circumstances, review the Federal Motor Carrier Safety Regulations and State Regulations concerning vehicle insurance. These regulations can be accessed at federal and state department websites and will provide detailed information on required coverages and limits.
