PART A - LIABILITY COVERAGE

Insuring Agreement

A. The PAP covers both "bodily injury" and "property damage" for which a covered person is legally obligated to pay because of an auto accident. The agreement also obligates an insurer to defend a claim or lawsuit. However, once the policy's limit of liability has been exhausted, the insurer's obligation to continue paying to legally defend an insured ends.

PART B - MEDICAL PAYMENTS COVERAGE

Insuring Agreement

Paragraph A of this coverage part explains that it will pay for necessary medical and funeral services incurred by an “insured” suffering from accidental “bodily injury.” However, only expenses for services provided within three years of the date of the accident are covered.

PART C - UNINSURED MOTORISTS COVERAGE

Insuring Agreement

A. This part’s insuring agreement obligates the issuing company to protect an “insured” against “bodily injury” caused by an accident with an “uninsured motor vehicle.” In other words, an insured can rely on his own PAP to take care of injuries resulting from an accident where the driver who caused the injury doesn’t have the coverage to take care of his or her legal obligation. However, this coverage part is not bound by any judgment for damages that are determined by a lawsuit that’s filed without the insurance company’s written consent. It is very important to note that different states vary on this issue. The common differences include whether the coverage is mandatory, what limits must be offered, the availability of underinsured coverage (including if UIM is considered part of UM coverage), and if UM coverage can be rejected.

PART D - COVERAGE FOR DAMAGE TO YOUR AUTO

This section is a serious departure from the earlier sections, since instead of liability to other injured parties, it deals with actual damage to the insured’s covered vehicle (including expenses because of loss of use of the same).

Insuring Agreement

A. Under paragraph A of the insuring agreement, the Personal Auto Policy agrees to protect “your covered auto” or a “non-owned auto” against accidental loss. Any payment includes compensation for loss to auto equipment, but does not include the applicable deductible. If you’re unlucky enough to have more than one covered vehicle involved in the same collision loss, only a single, highest deductible will count against any loss payment.