What are the personal auto liability exclusions?


There is a long list of exclusions to the liability coverage of a Personal Auto policy, which are just as important to understand as the insuring agreement itself. Therefore, you must make sure you become familiar with the liability coverage exclusions before your PAP policy comes into force, in order to know exactly which situations are and which are not covered.

PAP Liability Exclusions

Here is a list of the most basic liability exclusions under a PAP:

  • Owned and transported property. The PAP liability coverage does not apply to situations in which someone else's personal belongings are damaged while being transported by you in a vehicle you own.
  • Intentional damage or/and injury. Any damage to someone else's vehicle or injury caused intentionally is not covered by a Personal Auto policy.
  • Bodily injury to an employee of the insured. If your employee is injured while on duty, the employee is not covered under your PAP. Workers compensation benefits must be available to indemnify the employee.
  • Damage to property used by or rented to the insured. If, for instance, you have rented somebody's surf and are involved in an accident on your way to the beach, your PAP will not cover the damage to the surf. However, this is into the case with real estate property damages to which are usually covered by a PAP.
  • Autos used in the auto business. A garage/auto repairs liability policy must be adopted by people engaged in the auto business, instead.
  • Vehicle with three or less wheels. Off-road vehicles such as scooters, and two-wheel vehicles such as motorcycles, are not protected under a PAP liability coverage. However, liability coverage applies to medical emergency vehicles and nonowned golf carts.
  • Racing vehicles.
  • Vehicles other than the covered auto, which are made available for the regular use of the insured. If you drive a car you do not own on a regular basis, you can have the extended nonowned coverage endorsement included in your PAP.

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