Glossary

Personal auto policy (PAP)

Quick answer

A personal auto policy (PAP) is the standard insurance contract for vehicles that individuals own and drive for personal use. The NAIC describes it as coverage for private passenger cars and certain types of trucks owned by an individual or a married couple.

What it usually includes

A PAP bundles several coverages, each with its own limit or deductible. California's insurance department lists the common ones:

  • bodily injury and property damage liability,
  • medical payments,
  • uninsured motorist,
  • collision and comprehensive.

Depending on the state, the policy may also include personal injury protection or underinsured motorist coverage. Extras such as towing or rental reimbursement are added by endorsement, and your declarations page shows which ones you have.

What it usually excludes

Personal policies are priced for personal use. North Dakota's insurance department explains that carpooling is generally covered, but carrying passengers for a fee beyond simple cost sharing is excluded in most PAPs, often through what is called a livery exclusion. The same guidance says that a ride-hailing driver whose personal policy has this exclusion likely has no coverage for that driving without a rideshare endorsement. If you use your car for work, ask your insurer whether your policy covers that use.

Sources

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