chapter 7 personal auto policy

Categorization of Personal Auto Policy Packages

Part A - Liability Coverage Part B - Medical Payments Part C - Uninsured Motorists (UM) Coverage Part D - Coverage for Damage to Your Auto Part E - Duties After an Accident or Loss Part F - General Provisions Parts A, B, and C offer casualty insurance coverages. Part D offers property insurance coverage for the insured's covered autos.

Bodily Injury

Physical injury to a person, including sickness, disease, and death.

Property Damage

Physical injury to, destruction of, or loss of use of tangible property.

Extended Non-owned Coverage - Vehicles Furnished or Available for Regular Use

The Extended Non-owned Coverage Endorsement removes certain exclusions from Part A and Part B in order to provide liability coverage and medical payments coverage for non-owned vehicles that are furnished or available for regular use, such as a company car. More specifically under Part B, the insurer will provide medical payments coverage for bodily injury while occupying or when struck by a vehicle (other than Your Covered Auto) that is available for regular use. Coverage will apply to the individual named on the endorsement, which is why the endorsement is sometimes called Extended Non-owned Coverage for Named Individual Endorsement. There is an option to apply this coverage to the named individual and their family members, including the named individual's spouse. This coverage is still be subject to other Part A and Part B provisions, meaning this insurance is excess over any applicable insurance covering the non-owned vehicle.

Nonrenewal

The insurer must provide advance written notice of nonrenewal that meets requirements established by state law.

Part D- Transportation expenses

The insurer will pay a maximum of $20 per day, up to $600 total, for temporary transportation expenses incurred because of a collision or comprehensive loss, as long as that coverage is in place for the damaged auto. If the damaged auto is a non-owned auto, coverage only applies if the insured is legally responsible for the loss. Payment is limited to the period of time reasonably required to repair or replace the auto. If the loss is caused by a total theft of the covered auto or a non-owned auto, the insurer will only pay expenses incurred during the period beginning 48 hours after the theft, and ending when the auto is returned to use or the insurer pays for the loss. If the loss is caused by a peril other than theft, the insurer will only pay expenses beginning when the auto is withdrawn from use for more than 24 hours.

Automatic Termination

The policy automatically terminates if the insurer offers to renew the policy but the insured does not accept the offer, such as by failing to pay the renewal premium. Coverage also terminates if the named insured obtains other auto insurance on a covered auto.

Towing and Labor Costs Coverage Endorsement

This endorsement provides a scheduled amount of insurance, on a per-occurrence basis, for towing and labor costs incurred when Your Covered Auto is disabled. Non-owned autos will receive the broadest coverage available to any Your Covered Auto shown in the schedule. The insurer will only pay for labor performed at the place of disablement.

Payment of Loss (Part D)

When paying for losses covered under Part D, the insurer may make payment in cash or by repairing or replacing the stolen or damaged property. If making payment in the form of cash, the insurer will include any sales tax that applies to the stolen or damaged property. If stolen property is recovered, the insurer has the option of keeping the stolen property (at agreed or appraised value) or returning it to the named insured. If the insurer returns the stolen property, it must pay for any damage that resulted from the theft. Typically, once the damaged auto has been inspected and appraised, the named insured is responsible for selecting where repairs will be made. Many states prohibit insurers from requiring that insureds seek repairs from a specific business, as that would violate fair business practices.

Part F: General Provisions

establishes conditions for the coverage and describes the duties and obligations of the insured and insurer

Transfer of Your Interest in This Policy

he named insured may not transfer or assign their interest in the policy without the insurer's written consent. However, if the named insured dies, the resident spouse will automatically become a named insured. Similarly, if the named insured dies, their legal representative will automatically become a named insured, but only with respect to their legal responsibility for maintenance or use of any Your Covered Auto. Coverage provided by this provision is only provided until the end of the policy period.

Part A Exclusions

1. Intentional injury or damage 2. Bodily injury to an employee 3. Vehicle used for business 4. Vehicle used w/o reasonable belief of permission 5. Vehicles with fewer than 4 wheels 6. Nuclear energy 7. Racing vehicle

business

A business includes a trade, profession, or occupation, typically one that is continuous in nature and offers the opportunity for profit.

Family Member

A family member refers to any person related to the named insured or their resident spouse by blood, marriage, or adoption, and who also resides in the named insured's household. This definition includes a ward or foster child.

trailer

A trailer is a vehicle designed to be pulled by a private passenger auto, pickup, or van. It also means a farm wagon or farm implement while it is being towed by a private passenger auto, pickup, or van.

Part D Deductibles

Collision and comprehensive coverages are subject to separate deductibles, listed on the Declarations page. These deductible amounts may be different from each other. In the event of a loss where both deductibles would apply, the insured will only be required to pay the highest deductible.

Fraud

Coverage is not provided for any insured who commits fraud, makes fraudulent statements, or engages in fraudulent activity with respect to a claim for any accident or loss.

Part C Exclusions

Coverage under Part C is not provided for bodily injury sustained by: An insured while occupying or when struck by an auto owned by that insured that is not covered by the policy A family member while occupying or when struck by an auto owned by the named insured that is covered under a different policy Any insured if that insured settles the bodily injury claim and doing so impairs the insurer's ability to recover payments Any insured while occupying Your Covered Auto when it is being used as a public or livery conveyance, which does not include a share-the-expense car pool Any insured using a vehicle without reasonable belief that they are entitled to do so. Family members always have reasonable belief to use a covered auto. Coverage also does not apply when the injury is covered by Workers' Compensation or disability insurance. That coverage must pay first before Part C will apply. Uninsured motorists coverage is not provided for punitive or exemplary damage

Right to Recover Payment (Subrogation)

If the insurer pays a claim to someone who has a right to recover damages from another, that right is transferred to the insurer. If the claimant recovers from another party after the insurer has made payment, the claimant must reimburse the insurer.

Legal Action Against Insurer

Legal action may not be taken against the insurance company by anyone unless they have complied fully with the policy. In addition, no one may sue the insurance company until the insurer agrees in writing that the insured has a legal obligation to pay for damages.

Limit of Liability (Part C)

At a minimum, Part C will have a per-person bodily injury limit and a per-accident bodily injury limit, both of which are shown in the Declarations. This is the most the insurer will pay regardless of the number of insureds, claims made, vehicles or premiums shown in the Declarations, or vehicles involved in the accident. If the loss is covered by another part of the policy or another insurance policy entirely, payment will not be duplicated.

Part D offers two coverage options

Collision coverage and Other Than Collision (OTC, also called Comprehensive) coverage Collision coverage protects against the upset of Your Covered Auto or a non-owned auto or its impact with another vehicle or object—the only peril insured against is collision. Comprehensive coverage provides coverage on an open perils basis, with the exception of collision and other policy exclusions. OTC coverage includes, but is not limited to, the following perils: Missiles or falling objects Fire Theft or larceny Explosion or earthquake Windstorm Hail, water, or flood Malicious mischief or vandalism Riot or civil commotion Contact with a bird or animal Breakage of glass If glass breakage results in a loss, but the breakage of glass was caused by a collision, then the insured may elect to have the loss by glass breakage be considered a collision loss, rather than an OTC loss. The Declarations page must indicate if one or both of these coverages apply to a covered auto. In the event of a loss to a non-owned auto, the broadest coverage applicable to a covered auto applies to the non-owned auto.

Part D Insuring Agreement

Coverage for damage to the insured's auto pays for direct and accidental damage to Your Covered Auto and any non-owned auto, subject to a deductible. This is the only part of the policy that defines a non-owned auto, which is: Any private passenger auto, pickup, van, or trailer not owned by the named insured or a family member, or furnished for their regular use, while the auto is being used by the named insured or a family member Any non-owned temporary substitute while Your Covered Auto is out of normal use because of breakdown, repair, servicing, loss, or destruction

newly aquired auto

First, the named insured or their resident spouse must purchase the auto. Second, the vehicle must be purchased during the policy period and reported within a certain number of days. Third, it must be an eligible vehicle, meaning it is either of the following: A private passenger auto A pickup or van with a gross vehicle weight of 10,000 pounds or less that is not used for the delivery or transportation of goods and materials, except for delivery or transportation related to farming or ranching or that which is incidental to the insured's business of installing or repairing furnishings or equipment .

Joint Ownership Endorsement

For the coverage provided by this endorsement, the definition of "you" and "your" is amended to refer to two or more individuals who jointly own an eligible vehicle. The individuals may be ones who live in the same household and are not spouses, or the individuals may be nonresident relatives. The endorsement adds an exclusion to Part A to exclude liability coverage for the ownership, maintenance, or use of any vehicle, other than Your Covered Auto, by a nonresident relative or a family member of a nonresident relative. The endorsement offers an option to remove this exclusion.

Part D Exclusions

Generally, physical damage coverage is not provided for: Loss to a covered vehicle that occurs while it is being used as a public or livery conveyance, which does not include a share-the-expense car pool Loss due to radioactive contamination, nuclear weapon, war, insurrection, or rebellion Total loss to Your Covered Auto or a non-owned auto due to destruction or confiscation by government or civil authorities Loss to an auto in a racing facility for the purpose of competing, practicing, or preparing for a racing or speed contest Damage due to wear and tear, freezing, mechanical or electrical breakdown or failure, or road damage to tires. These are maintenance issues commonly excluded under property policies.This exclusion will not apply if this damage results from total theft of the auto Covered non-owned autos are subject to further exclusions. Part D does not provide coverage for losses to non-owned autos that are: Used by an insured without a reasonable belief of entitlement to do so Maintained or used by a person engaged in the business of selling, repairing, servicing, storing, or parking vehicles (including road-testing and delivery) -Loss to electrical equipment that is not permanently installed in the vehicle. This includes radios, stereos, tape decks, CD players, navigation systems, computers, phones, recording devices, televisions, mobile or CB radios, and scanners. Losses to tapes, records, disks, or other media used with this equipment are also excluded. These portable devices may be covered by a Homeowners policy or other property policy. -Loss to radar and laser detection devices and equipment -Loss to a trailer, camper body, or motor home that is not shown in the Declarations. Equipment used with these items is also excluded, including cooking or refrigeration facilities, plumbing, awnings, and cabanas.However, coverage is provided for non-owned trailers, and for any trailer, camper body, or equipment acquired during the policy period if notice is provided to the insurer within 14 days of ownership -Loss to custom furnishings or equipment on any pickup or van. This includes special carpeting and insulation, furniture or bars, height-extending roofs, and custom murals or other graphics.However, coverage is provided for a cap, cover, or bedliner in or on the pickup

No Benefit to Bailee (part D)

If a bailment relationship exists with respect to the covered vehicle, the policy will not make payment for the benefit of anyone who had care, custody, or control of the covered auto. For example, if the insured's vehicle was in the repair shop for servicing and the mechanic damaged the vehicle, this policy would not make payment. The repair shop's insurance would have to pay because of its legal liability as a bailee.

other insurance (part C)

If more than one policy is in place to provide uninsured motorists coverage, the total amount the insured may collect cannot exceed the highest limit applying to any one vehicle. For example, if the insured's limits are 100/300 and the limits on the other applicable policy are 50/100, the most the insured may collect is 100/300. If more than one policy applies, the insurer pays only its share of the loss, which is the proportion that its limit of liability bears to the total amount of all applicable coverage. If the loss occurs while the named insured or family member is occupying a non-owned vehicle, the policy covering the non-owned vehicle is primary, and the insured's coverage is excess.

other source of recovery (part d)

If other insurance is in place, or if another party is available to make payment for a covered loss, Part D only pays its proportionate share of the loss. If a loss occurs and the covered auto is a non-owned auto, the policy pays on an excess basis. Primary coverage is considered insurance provided by the vehicle's owner, any other physical damage coverage that may be in place, and any other source of recovery, such as the insurance purchased by the driver of the vehicle.

Appraisal (Part D)

If the insured and the insurance company are unable to agree about the amount of a loss, either party may demand an appraisal. Each party selects, and pays for, its own appraiser. The appraisers prepare separate appraisals of the actual cash value and amount of loss. If they fail to agree, they select an umpire to whom they submit their differences. If any two of the three parties agree, that decision is binding. The insured and insurer share the expenses of the umpire and appraisal.

Bankruptcy

If the insured declares bankruptcy, the insurer must still comply with all obligations of the policy.

Other Insurance

If there is other applicable auto medical payments insurance, the insurer will pay only its pro rata share of the loss. However, coverage for bodily injuries sustained while occupying non-owned vehicles is excess over any other collectible auto insurance providing payment for medical or funeral expenses.

Two or More Auto Policies

If two or more policies issued by the same insurer apply to the same accident, the maximum limit of liability that will be paid will not exceed the policy with the highest limit.

Supplementary Payments

In the event that the insurer provides a defense for a covered claim, the insurer will pay the following supplementary payments, which are paid in addition to the limit of liability: Up to $250 for the cost of bail bonds required because of a covered accident, including related traffic law violations Premiums on appeal bonds Interest accrued after a judgment is rendered in any suit defended by the insurer Up to $200 a day for the insured's loss of earnings due to attendance of trials or hearings Other reasonable expenses incurred at the insurer's request

Part C Insureds

Insureds under Part C include the named insured, any family member, any person occupying Your Covered Auto, and any other person entitled to recover damages relevant to Part C. Though passengers must be occupying a covered auto, coverage for the named insured and family members could apply to injuries sustained while occupying any auto, such as a non-owned auto, or if they are injured while acting as pedestrians.

Part B- Medical Payment Coverages

Insuring Agreement The insurer will pay reasonable expenses incurred for necessary medical and funeral services caused by an accident, sustained by an insured, and incurred within 3 years of the accident. Unlike Part A, medical payments coverage does not require an insured to be legally responsible for causing injuries. Part B Insureds Under Part B, the policy defines an insured as: The named insured or a family member occupying any motor vehicle designed for use on public roads or any type of trailer The named insured or a family member acting as a pedestrian when struck by a motor vehicle designed for use on public roads or any type of trailer Any other person while occupying Your Covered Auto, such as a passenger

Part A: Liability Coverage

Insuring Agreement Under a PAP's third-party liability coverage, the insurer agrees to pay damages for bodily injury or property damage for which any insured becomes legally responsible. The insurer also agrees to settle or defend any claim or suit asking for those damages, and will pay all defense costs it incurs, without being limited by policy limits. The insurer's duty to settle or defend ends when the damages owed to the injured party exhaust the Part A limit of liability. A defense or settlement is not provided for any suit or claim that is not covered under the policy

Personal Auto Policy (PAP)

Like Homeowners policies, the Personal Auto policy (PAP) is a personal lines package policy. The PAP offers multiple casualty coverages as well as physical damage coverage relating to an individual's or family's personal (non-business) use of certain types of motor vehicles. Nearly every state requires car owners to have car insurance, so many of the PAP's terms, like required minimum limits of insurance and termination provisions, are regulated by an individual state's financial responsibility laws and other regulations.

Part E: Duties After an Accident or Loss

Notify the insurer promptly about how, when, and where the accident or loss occurred, including names and addresses of injured people and witnesses Cooperate with the investigation, settlement, and defense of any claim Promptly send to the insurer any copies of notices or legal papers received Submit to a physical exam as reasonably required by the insurer Authorize the insurer to obtain copies of medical reports and other pertinent records Submit a proof of loss when required by the insurer When seeking uninsured motorists coverage, the insured must promptly notify the police if a hit-and-run driver is involved and send legal papers to the insurer if a lawsuit is filed. An insured making a claim under Part D must protect the property from further damage, notify the police promptly if the vehicle is stolen, and allow the insurer to inspect and appraise the damaged vehicle before its repair or disposal.

Miscellaneous Type Vehicle Endorsement

Part A - Liability Coverage Under Part A on an unendorsed policy, liability coverage is excluded for vehicles with fewer than four wheels and vehicles designed mainly for use off public roads. This endorsement amends that exclusion to make an exception for vehicles scheduled on the endorsement. The insured may also choose to apply the Passenger Hazard exclusion, in which case the insurer does not provide liability coverage for bodily injury to someone, like a passenger, occupying the miscellaneous type vehicle. Part B - Medical Payments Coverage Part B's medical payments exclusion for bodily injury sustained while the insured occupies a vehicle having fewer than four wheels is amended to make an exception for bodily injury sustained while occupying a described miscellaneous type vehicle. Part D - Coverage for Damage to Your Auto Coverage for physical damage to the miscellaneous auto under Part D will include coverage for direct and accidental loss to facilities and equipment used with a motor home described on the endorsement, including cooking and refrigeration facilities, plumbing, awnings, and cabanas. However, Part D will not pay for loss to clothing, luggage, business or office equipment, articles for sales samples, or articles used in exhibitions. Loss resulting from fungi, wet or dry rot, or bacteria is also excluded. The definition of non-owned auto under Part D is amended to include a non-owned miscellaneous type vehicle being used as a temporary substitute. The Part D limit of liability for the miscellaneous type vehicle is the lesser of the scheduled limit, the actual cash value of stolen or damaged property, and the necessary amount to repair or replace the property

Part D (Coverage for Damage to your Auto)

Part D addresses coverage for damage to the insured's auto, also known as physical damage coverage. Part D provides first-party property damage coverage for the insured's covered autos and also provides some coverage for non-owned vehicles being operated or used by the insured and family members.

Changes

Policy terms may only be changed or waived by an endorsement issued by the insurer. Because the factors used to develop the premium for an auto policy are subject to change and may affect the insured's risk exposure, the insurer may adjust the premium in the event of changes to those factors. Premium increases or decreases may result from changes in: --The number, type, or use classification of insured vehicles --The operators using insured vehicles --The place in which insured vehicles are principally garaged --Coverage, coverage limits, and any applicable deductibles Following a standard Liberalization clause, if the insurer makes a change to the edition of the policy form used for the insured's policy and the change broadens coverage without an additional premium charge, that change is applied automatically.

Other Termination Provisions

Proof of mailing any notice is sufficient proof of notice. The insurer may also deliver the notice directly to the insured. If the policy is cancelled and there is unearned premium, the insured is entitled to a refund, which will be computed according to the insurer's manuals. The effective date of cancellation stated in the notice will become the end of the policy period.

Personal Injury Protection (PIP)

Some states may require or make available personal injury protection (PIP) coverage. Personal injury protection, sometimes referred to as no-fault insurance, covers certain medical expenses and other costs incurred by an insured or passengers in a covered auto in connection with a car accident, regardless of who is at fault for the accident. PIP insurance is not the same as the coverage provided by Part B of a Personal Auto policy. State laws typically set a minimum PIP limit required by the state, and insurers may set maximum limits available to insureds. PIP coverage will also cover more expenses, including medical and funeral expenses, wage loss to an insured or their survivors resulting from the insured's injury or death, and the cost of essential services the insured is unable to perform, such as childcare. Property damage, bodily injury to drivers and passengers in other autos involved in the accident, and injuries that occur while the auto is being used as a public or livery conveyance are excluded.

occupying

Someone who is in or getting into, upon or getting upon, getting out, or getting off of a vehicle is considered to be occupying the vehicle.

Limits of Liability

Split or combined single limit When written as split limits, the amount of coverage for bodily injury and property damage is separated into three limits: a per person limit for bodily injury, a per accident limit for bodily injury, and a per accident limit for property damage. The bodily injury limits include the cost of care, loss of services, and death. When written as a combined single limit, the limit is the maximum the insurer will pay per accident for any combination of bodily injury and/or property damage.

Termination

Termination provisions of Personal Auto policies are dictated by state laws. Most states require that notices include the reason for termination, or for insurers to make the reason available upon request. The following standards are common to Personal Auto policies.

Your Covered Auto

The Personal Auto policy frequently refers to Your Covered Auto, which will include: Any vehicle shown in the Declarations Any trailer owned by the named insured or resident spouse A newly acquired auto Any non-owned auto or trailer being used as a temporary substitute for a covered auto while the covered auto is unavailable for use due to breakdown, repair, servicing, loss, or destruction

eligibility

The Personal Auto policy was designed to provide insurance for vehicles owned by one or more individuals and intended for personal use. Eligible vehicles include private passenger autos, which are four-wheeled vehicles like cars and SUVs. Passenger vans and pickups are also eligible if they meet certain gross vehicle weight requirements, usually 10,000 pounds or less. These vehicles must be owned by the named insured, except that vehicles leased to the named insured for a continuous period of at least 6 months are also eligible. Like other personal lines policies, incidental business use is allowed, such as making sales calls while in the vehicle. Approved incidental business use also includes delivering or transporting goods and materials for farming or ranching, and delivering or transporting goods and materials that are incidental to a business that involves installing or repairing furnishings or equipment. Making other business deliveries, carrying passengers for a fee, or any other business use would make the vehicle ineligible for Personal Auto coverage, and commercial auto insurance would be needed. When underwriting and rating Personal Auto policies, the most important factor is who will be insured. This is primarily because the driving record of any drivers, among other factors, will determine insurability and rating categorization. Drivers with clean driving records within a certain time period are given better rates than those with less driving experience or a history of driving infractions. If an applicant is too high risk to insure in the voluntary market, coverage may be provided by a state fund in the residual market.

Limit of Liability (Part D)

The insurer's limit of liability for loss is the lesser of the actual cash value (ACV) of the damaged property or the amount necessary to repair or replace the damaged property with another of like kind and quality. In the event of a total loss, ACV will be adjusted for depreciation and physical condition. If a repair or replacement results in better than like kind or quality, the insurer will not pay for the amount of the betterment. There is a maximum limit of $1,500 for a non-owned trailer and $1,000 for permanently installed electronic equipment.

Limit of Liability

The limit of liability shown in the Declarations is the maximum the insurer will pay for each person injured in any one accident. Like the Part A limit, this limit is the most the policy will pay regardless of the number of insureds, claims made, vehicles or premiums shown in the Declarations, or vehicles involved in the accident. Payment will not be duplicated.

AN Insured

The named insured or any family member who owns, maintains, or uses any auto or trailer, including unlicensed family members Any person who uses Your Covered Auto with permission For Your Covered Auto, a person or organization legally responsible for anyone covered under Part A, when the responsibility is for acts or omissions by an insured that are relevant to Part A For an auto or trailer other than Your Covered Auto, any person or organization legally responsible for acts or omissions of the insured or any family member that are relevant to Part A, but only if the person or organization does not own or hire the auto or trailer

Cancellation

The named insured shown in the Declarations may cancel the policy anytime during the policy period by returning to the policy to the insurer or by giving the insurer advance written notice of the date cancellation is to take effect. The insurer may cancel the policy by mailing advance written notice to the named insured. Requirements for this notice are provided by state law. State law may limit the reasons for which an insurer may cancel the policy once the policy has been in effect for at least 60 days. These reasons often include: -Nonpayment of premium -The driver's license of the named insured, a driver who lives with the named insured, or a driver who regularly uses Your Covered Auto is suspended or revoked during the policy period -Material misrepresentation in the policy application

Policy Period and Territory

The policy only provides coverage for accidents and losses that occur during the policy period and within the policy territory. The policy territory is the United States of America, its territories and possessions, Puerto Rico, and Canada, including while being transported between their ports.

"You and Your"

The policy uses "you" and "your" throughout to refer to the named insured listed on the Declarations and the named insured's resident spouse. Typically, this resident spouse is also considered a named insured, even if they are not listed on the Declarations page. If the spouse is no longer a resident of the named insured's household, the spouse will be included under this definition only until one of the following events, whichever occurs first: - The end of 90 days following the spouse's change of residency - The effective date of another policy listing the spouse as a named insured - The end of the policy period

Miscellaneous Type Vehicle Endorsement

This endorsement changes the policy by adding a definition for miscellaneous type vehicle, which means a motor home, ATV, dune buggy, or golf cart. Insurers may also allow motorcycles to be included for coverage, though separate insurance may be needed. This definition does not include a snowmobile. Your Covered Auto may then include the miscellaneous type vehicle owned by the named insured and described on the endorsement, and a newly acquired miscellaneous type vehicle is subject to the same notification requirements as newly acquired eligible vehicles.

Rental Vehicle Coverage Endorsement

This endorsement provides coverage for the insured's obligations in the event of actual damage to or loss of a rental vehicle, including loss of use. Some insurers may allow business uses of the rental vehicle. Coverage typically only applies to rentals lasting no more than 30 continuous days.

Limited Mexico Coverage Endorsement

This endorsement provides coverage on an excess basis only for losses and accidents that occur in Mexico, within 25 miles of the United States-Mexico border, while the insured is on a trip to Mexico for a period of 10 days or less. This endorsement is not intended to provide insurance that meets Mexican auto insurance requirements, and the insured must purchase primary coverage through a licensed Mexican insurance company first. Coverage is not provided if this primary coverage is not in place or if the insured is occupying an auto other than Your Covered Auto. Coverage is also not extended to anyone who is a citizen or resident of Mexico. The insurer's duty to defend only applies to legal action brought in the United States. Physical damage repairs made in Mexico are only covered if the auto cannot be driven in its damaged condition.

When an uninsured motorist is legally responsible for an accident because of their ownership, maintenance, or use of an uninsured motor vehicle, Part C will pay compensatory damages the insured is legally entitled to recover. This coverage only applies in the case of bodily injury, which includes bodily harm, sickness or disease, and any resulting death. Unless the policy specifically states that uninsured motorists physical damage (UMPD) coverage is provided, Part C does not include coverage for physical damage. Only certain states require UMPD to be in place.

True

Underinsured Motorists (UIM) Coverage

Underinsured motorists coverage is slightly different from uninsured motorists coverage. Generally, UIM coverage is for bodily injury resulting from an accident caused by someone who has auto liability insurance, but whose coverage limits are inadequate to respond to claims. State laws may provide more specific definitions of who is considered an underinsured motorist. Some states may require UIM coverage, either as a separate coverage or bundled with UM coverage. In other states, coverage is optional or could be added by endorsement. The coverage pays the amount that exceeds the limit of liability of the at-fault party, up to the UIM limit.

Part B Exclusions

While occupying a vehicle with fewer than 4 wheels While occupying Your Covered Auto while it is being used as a public or livery conveyance. This exclusion does not apply to a share-the-expense car pool. While occupying any vehicle used as a residence, such as living in one's car or a permanently located motor home or trailer During the course of employment when Workers' Compensation benefits are available or are required to be available While occupying or struck by any vehicle—other than Your Covered Auto—that the named insured owns or that is furnished for the named insured's regular use. An example of a vehicle furnished for regular use would be a company car. While occupying or struck by any vehicle—other than Your Covered Auto—that a family member owns or that is furnished for a family member's regular use. This exclusion does not apply to the named insured and their spouse. While occupying a vehicle without a reasonable belief that the insured is entitled to do so. Family members always have reasonable belief of entitlement to occupy a covered auto. While occupying a vehicle when it is being used in the business of an insured, though this does not apply to a private passenger auto, pickup, van, or trailer. This eliminates coverage for commercial vehicles. While occupying any vehicle inside a racing facility for the purpose of competing, practicing, or preparing for a race or speed contest Bodily injuries caused by war, insurrection, rebellion, or nuclear weapon, or caused as a consequence of radiation, are also excluded

Newly Aqcuired Auto (Part A, B, & C)

that auto receives the broadest coverage that is provided to an auto already on the policy for liability coverage (Part A), medical payments (Part B), and uninsured motorists coverage (Part C). If the newly acquired auto is replacing a vehicle shown in the Declarations, this coverage begins automatically from the date of ownership without having to notify the insurer. If the auto is being added to the policy, this coverage will begin on the date the insured becomes the owner of the vehicle if the insurer is notified of the newly acquired auto within 14 days of ownership. If the auto is reported after that 14-day period, coverage will begin as of the time of the request for coverage

Newly Aquired Auto (PartC)

the insured wishes to add physical damage coverage (Part D) for the newly acquired auto. Because Part D offers multiple options for protection against different perils, the notice requirement changes depending on if the named insured wants to apply the same coverage that is provided to an auto already on the policy, or if the named insured wants a different coverage option to apply to the newly acquired auto. Under Part D, coverage will begin on the date the insured becomes the owner of the auto if the insurer is notified: -Within 14 days after the insured becomes the owner, if the requested Part D coverage already applies to at least one auto already on the policy -Within 4 days after the insured becomes the owner, if the requested Part D coverage does not apply to any auto already on the policy. In the event that a loss occurs before notice is provided, a $500 deductible will apply.

Part C - Uninsured Motorists (UM) Coverage

uninsured motorists coverage provides insurance to insureds who suffer bodily injury from accidents caused by the owner or operator of an uninsured motor vehicle. Though state law may provide a different definition, the standard PAP understands an uninsured motor vehicle to be any vehicle that: Does not have a bodily injury liability policy or bond in place at the time of the accident Has insurance or a bond in place, but for less than the minimum limit required by the laws of the state in which Your Covered Auto is principally garaged Has insurance or a bond in place, but the insurance or bonding company denies coverage or becomes insolvent Is a hit-and-run vehicle whose owner or operator cannot be identified and who hits: The named insured or any family member Any vehicle occupied by the named insured or any family member Your Covered Auto The definition of uninsured motor vehicle does not include vehicles and equipment that are: Owned by or furnished for the named insured's or a family member's regular use Owned or operated by a self-insurer, unless the self-insurer is insolvent Owned by any governmental agency Operated on rails or crawler treads, such as trains or bulldozers Designed for use off public roads, like snowmobiles or ATVs Used as a residence