Private Passenger Auto (PPA) insurance, as utilized in the insurance industry, refers to filings that incorporate various types of coverage systems. These systems can include, but are not limited to, the following components either singularly or combined. Each component part of the PPA insurance describes different types of protection offered to the vehicle and its passengers in different scenarios:
Auto Liability: This covers damages to third persons or property due to the insured car. It is usually mandatory in most states.
Personal Injury Protection (PIP): This provides the insured with coverage for medical expenses, lost wages, and sometimes funeral expenses resulting from an auto accident regardless of fault.
Medical Payments (MP): Similar to PIP, this coverage handles medical costs after an auto accident regardless of fault, but it does not cover other expenses like lost wages.
Uninsured/Underinsured Motorist (UM/UIM): Protects the insured when an accident is caused by a driver who does not have enough insurance or any insurance.
Specified Causes of Loss: Oftentimes linked with commercial auto policies, covers losses from specific events outlined in the policy.
Comprehensive: Provides insurance coverage against theft and damage caused by an incident other than a collision, such as fire, flooding, or animal strike.
Collision: Covers damages to the insured car resulting from a collision, regardless of who is at fault.
Further Resources
Below are additional resources for more detail on auto insurance coverage:
Official U.S Department of Transportation Guide on Traffic Laws
Vehicle insurance laws differ from one state to another. Always consult your local DMV or official state website for specified information about auto insurance requirements. It’s also sensible to consult an insurance expert to understand each coverage and customize according to personal requirements.
