Personal Auto Policy
What Does Personal Auto Policy 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
The Insurance Services Office (ISO), an organization that collects data and provides underwriting, risk management, and legal/regulatory services in the insurance industry, developed the Personal Auto Policy (PAP) to simplify auto insurance for both customers and insurers. The PAP makes it easier for customers to understand and review their coverage while providing insurers with a standardized framework for their auto insurance policies. However, not all insurance companies use the PAP, as some prefer to create their own custom designs.
While the PAP standardizes the types of coverage in a policy, it does not standardize the coverage amounts for each section. The policyholder chooses the level of coverage they want under each section when purchasing the policy.
