Why is it so important to have a PAP Liability insurance coverage?


Imagine you get involved in an accident and the driver of the other vehicle suffers really serious bodily injuries. If the affected party makes a claim and the court finds you at fault, you will be held legally and financially responsible for causing a car accident and might end up in a financially disastrous situation if you do not have any auto insurance to cover the expenses.

Getting a PAP Liability coverage, however, can prevent this from happening by paying for your liabilities up to certain limits specified in the auto policy.

The example is hypothetical, and in fact, it does not illustrate all the possible situations in which you might be held liable for bodily injuries. In addition to causing injuries to people occupying another auto, this can apply to passengers in your automobile, or even pedestrians struck by your car.

Let us also not forget that an auto accident usually entails some serious or minor property damage, too, which you will be required to pay for, if found at fault. The PAP Liability insurance section covers the expenses you will need to pay for damage to someone else's auto or any other personal property affected, such as fences, houses or other buildings.

Contents of a PAP Liability Insurance Coverage

Liability coverage, also referred to as Part A coverage, is the basic and most important part of any Personal Auto policy. The following sections are indispensable to a liability coverage:

  • Insuring agreement - this is the part of a PAP Liability coverage where the basic provisions are specified, including the amounts of PAP liability insurance payable in damages, and the insurer's promise to defend you in the event of a suit.
  • Insured persons - this section provides a definition of the people who are insured under a liability coverage.
  • Exclusions - this section provides a long list of liability coverage exclusions, such as intentional damage or injury, racing vehicle, etc.
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