A personal auto policy, also known as PAP, is a type of insurance coverage that is intended to cover vehicles that are for personal and not commercial use. This sort of policy may include pickup trucks, passenger cars or vans not used for commercial or business deliveries and freight. The personal auto policy will also generally cover a leased vehicle, as long as the lease period is more than six months. It is best to consult with your car insurance agent to confirm coverage.
Typically, most car insurance companies offer a combination policy that fuses together more than one basic type of insurance coverage. This allows the policyholder to obtain car insurance coverage that is truly beneficial to them. In coming up with the policy right for you, you may consider including a personal auto policy in your coverage.
Under a PAP a combination of coverage may be included. Liability coverage comprises bodily injury and property damage. Bodily injury liability protects you (the insured) from monetary loss owing to injuries that you or another person who drives your vehicle caused to someone else. These costs may consist of claims for lost wages, medical expenses, pain and suffering or funeral expenses. Property damage liability on the other hand covers payment for any damage or harm you may have caused to someone else's property. In many occasions, damage pertains to someone else's vehicle, but it could also be damage to a structure, mailbox or fence. Loss of use of the property is also covered. An example of this is when a driver needs a replacement car while theirs is in the shop being repaired. Under a PAP, uninsured motorist coverage can also be included. This pays for damages when you are in an accident with an uninsured driver and have costs that need to be covered. Collision coverage applies when the damage is caused by another vehicle, while comprehensive coverage includes losses other than a collision, like fire, hail, theft, etc. Besides the usual coverage, there are other additional policy endorsements that you can take advantage of. This additional coverage pays for the cost of having the vehicle towed to the service center or a car rental while your car is being restored after an accident.
Car insurance requirements vary by state so be sure to discuss these with your agent. Car insurance rates also differ from company to company based on the coverage you desire, so make sure to shop around and compare car insurance rates. After you've settled with a company, talk to them about obtaining your own personal auto policy. Doing this will give you the peace of mind that you are properly covered when behind the wheel.
