What Does Personal Auto Policy (PAP) Mean?
The personal auto policy (PAP) is a standardized design for auto insurance. These policies offer coverage for liability, medical payments, damage to the vehicle and damage from uninsured/underinsured motorists.
A personal auto policy has a set layout of six sections. Part A explains the liability coverage, Part B explains the medical payments coverage, Part C explains the coverage for uninsured motorists, and Part D explains the coverage for damage to the car. Part E lists the insured's responsibilities after a crash while Part F lists any other provisions in the policy.
Insuranceopedia Explains Personal Auto Policy (PAP)
The Insurance Services Office, an organization that collects data and provides underwriting, risk management and legal/regulatory services in the insurance industry, developed the personal auto policy to make auto insurance easier for both customers and insurers. The PAP makes it easier for customers to review and understand their coverage while insurers get a set design for their auto insurance policies. However, not all insurance companies use the PAP as some prefer to use their own unique design.
While the PAP standardizes the types of coverage in a policy, it doesn't standardize how much coverage you get under each section. You decide how much coverage you want under each section when you sign up for your policy.