Personal Auto Policy
The Personal Auto Policy is organized into standardized coverage parts. This chapter explains Parts A through D, how limits are expressed, uninsured and underinsured motorists coverage, and which vehicles are covered.
The Four Coverage Parts
The Personal Auto Policy uses four main parts. Part A (liability) pays for bodily injury and property damage the insured causes to others and provides a legal defense. Part B (medical payments) pays medical expenses for the insured and passengers regardless of fault. Part C (uninsured/underinsured motorists) protects the insured injured by an at-fault driver with no or too little insurance. Part D (coverage for damage to your auto) pays for physical damage to the insured's own vehicle.
Physical Damage: Collision vs. Comprehensive
Under Part D, collision coverage pays for damage to the insured's own auto from striking a vehicle or object or from upset (overturning), regardless of fault. Other-than-collision (comprehensive) coverage pays for losses not caused by collision, such as theft, fire, vandalism, hail, flood, glass breakage, and animal strikes. Each is usually written with its own deductible. Damage the insured causes to another person's car is a liability matter under Part A.
Limits and Uninsured Motorists
Auto liability limits are often shown as split limits, read as bodily injury per person / bodily injury per accident / property damage per accident; for example, 50/100/25 means $50,000 per person, $100,000 per accident, and $25,000 property damage. Uninsured motorists coverage protects an insured injured by an at-fault driver with no liability insurance or who flees, and underinsured motorists coverage applies when the at-fault driver's limits are too low. State law sets minimum required limits, but the structure is national.
Covered Autos
The policy defines covered autos to include the vehicles listed on the declarations plus, within policy rules, newly acquired autos (for a limited time, sometimes requiring notice) and a temporary substitute auto used while a covered vehicle is out of service for repair. This prevents a coverage gap when the insured changes cars or drives a loaner. Specific conditions and time limits apply, so producers should explain how newly acquired and substitute vehicles are treated.