When a driver borrows a neighbor's trailer and has an accident, which description best describes the insured's coverage under the PAP?

• A. His PAP will extend coverage if the proper endorsement is added
• B. Only the liability of the PAP extends to the trailer
• C. His auto is insured, but not the borrowed trailer
• D. His PAP extends liability to the trailer and Part D-Physical Damage extends $1,500 coverage to the borrowed trailer

Answer: (D)

When a driver borrows a neighbor’s trailer and uses it with a covered auto, the Personal Auto Policy automatically extends liability coverage to the trailer. This means the insured’s liability coverage can apply to damages or injuries caused by the trailer, up to the policy’s liability limits. In addition, Part D (Physical Damage) provides coverage for a non-owned trailer that is attached to a covered auto, but with a limited amount—typically around $1,500—for damage to the borrowed trailer itself. So the policy covers liability for the trailer and also offers up to $1,500 of physical damage coverage for the borrowed trailer. Endorsements aren’t required for this basic extension, which is why this description matches the scenario.