Personal Auto Policy
The Personal Auto Policy (PAP) is organized into standardized coverage parts. This chapter explains Parts A through D, split versus combined single limits, and the difference between uninsured and underinsured motorists coverage.
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 when an at-fault driver has no or too little insurance. Part D (coverage for damage to your auto) pays for physical damage to the insured's own vehicle through collision and other-than-collision coverage.
Collision vs. Other-Than-Collision
Under Part D, collision coverage pays for damage to the insured's own auto from striking another vehicle or object or from upset (overturning), regardless of fault. Other-than-collision (comprehensive) coverage pays for losses not caused by collision, such as fire, theft, vandalism, hail, flood, glass breakage, falling objects, and animal strikes. Each is usually written with its own deductible. Damage the insured causes to another person's vehicle is a liability matter under Part A, not Part D.
Limits: Split vs. Combined Single Limit
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, 100/300/50 means up to $100,000 per injured person, $300,000 total per accident for bodily injury, and $50,000 for property damage. A combined single limit instead provides one total amount that applies to both bodily injury and property damage per accident. State law sets minimum required limits, but the structure of the limits is national.
Uninsured vs. Underinsured Motorists
Uninsured motorists (UM) coverage protects an insured injured by an at-fault driver who has no liability insurance or cannot be identified, such as a hit-and-run. Underinsured motorists (UIM) coverage applies when the at-fault driver does have insurance, but the limits are too low to cover the injured insured's damages. Both coverages essentially supply the liability protection the negligent driver failed to carry, protecting the innocent insured.