What it does
The PAP has Part A (Liability), Part B (Medical Payments), Part C (Uninsured Motorists), Part D (Coverage For Damage To Your Auto), Part E (Duties After An Accident Or Loss) and Part F (General Provisions).
The 09 18 edition: requires notice within 14 days for any newly acquired auto (addition or replacement) for coverages other than physical damage; raises supplementary-payment loss of earnings to $250 a day; builds the transportation network and personal vehicle sharing exclusions into the policy with a volunteer and charitable use exception; adds exclusions for driver-skill events at racing facilities and for vehicles designed for flight; makes non-owned auto coverage excess except over insurance written as specific excess; adds a recorded-statement duty; and raises transportation expenses to $30 a day and $900.
PP 00 01 09 18 is the current multistate edition; earlier editions were 01 05 and 06 98.
Who needs it
Owners and households of private passenger vehicles, including sole proprietors who use their personal vehicle for work. Commercial agents see it when quoting the owner's personal lines, when deciding whether a business vehicle belongs on a commercial policy, and as underlying insurance for a personal umbrella.
Key provisions and limits
- Part A excludes vehicles with fewer than four wheels or designed mainly for off-road use (motorcycles and ATVs need PP 03 23 or a separate policy) and vehicles owned by or furnished for the regular use of the insured, other than "your covered auto".
- Part D covers up to $1,500 of "custom equipment" in or upon your covered auto; more requires PP 03 18.
- A newly acquired pickup or van must have a GVWR of 10,000 lbs. or less and not be used to deliver or transport goods except as incidental to an installing, maintaining or repairing business, or for farming or ranching.
Quoting and selling notes
- Ask who owns and titles each vehicle; vehicles owned by a corporation or LLC generally need commercial auto.
- Ask about rideshare and delivery driving (PP 23 41, PP 23 45, PP 43 34), employer-furnished vehicles (PP 03 06) and non-owners (PP 03 22).
Business use notes for commercial agents
The PAP covers business use of private passenger autos, pickups and vans (Exclusion A.7 does not apply to them), but excludes the auto business (selling, repairing, servicing, storing or parking vehicles) for vehicles other than the insured's own covered auto, any vehicle used as a public or livery conveyance including time logged into a transportation network platform, and, for newly acquired pickups and vans, use for delivering goods unless incidental to an installing, maintaining or repairing business or to farming or ranching. Vehicles titled to or furnished by the business, heavier trucks and fleets belong on a commercial auto policy (CA 00 01), where "regular use" vehicles furnished by an employer are a common gap that PP 03 06 can fill.
Editions and availability
Current edition 09 18, replacing 01 05, 06 98. State adoption varies; many states use state-specific versions of the PAP endorsements.
Related forms
PP DS 01, PP 03 06, PP 03 22, PP 23 41, PP 43 34, PP 03 23, DL 98 01.
