What is the purpose of the Personal Auto Policy?

• A. Used to insure the automobile exposures of individuals and families.
• B. Provides coverage for property losses to the insured's vehicle only.
• C. Covers liability for commercial trucking operations.
• D. Insures homeowners' personal property.

Answer: (A)

The main idea here is that the Personal Auto Policy is a contract designed to protect individuals and families from the risks associated with owning and operating private vehicles. It covers the typical automobile exposures a household faces, not business fleets or homeowners’ property.

A Personal Auto Policy provides several protections within one policy. It includes liability coverage to pay for injuries or property damage you cause to others, medical payments or personal injury protection for you and your passengers, and often uninsured/underinsured motorist protection. It also offers physical damage coverage to your own vehicle, such as collision and other-than-collision losses, when you choose to include those parts of the policy. In short, this policy is tailored to individuals and families and their private cars, rather than commercial trucking operations or homeowners’ property.