PERSONAL AUTO POLICY · 5 MIN READ

Part A Liability: Limits, Exclusions, and Territory

Part A pays damages for bodily injury and property damage for which an insured becomes legally responsible because of an auto accident, and it funds defense costs in addition to the limit. Limits come in two shapes: split limits (a per-person bodily injury limit, a per-accident bodily injury limit, and a per-accident property damage limit) or a Combined Single Limit (CSL) that applies one pool to all BI and PD in an accident. Supplementary payments ride on top of the limit and include up to $250 for bail bonds required because of an accident, premiums on appeal bonds, loss of earnings for attending trials at the insurer's request, interest on judgments, and other reasonable expenses incurred at the insurer's request. The exclusions define the coverage's real shape. The furnished-or-available-for-regular-use exclusion removes vehicles the insured can use routinely but does not own — the classic examples are an employer-provided company car used for personal errands and a government-owned vehicle driven by a federal employee, where the agency's self-insurance and the Federal Tort Claims Act respond instead. PP 03 06 Extended Non-Owned Coverage buys this exclusion back for a named individual and family members. Other core exclusions bar public livery use (carrying persons or property for a fee — the exclusion that makes rideshare endorsements necessary), and any auto used in a prearranged or organized racing or speed contest, which applies even at sanctioned closed-track events and bars both Part A liability and Part D physical damage. Territory is jurisdictional: the PAP covers accidents in the United States, its territories and possessions, Puerto Rico, and Canada, plus a covered auto being transported between their ports. Mexico is NOT in the territory — border endorsements provide only narrow help. There is no federal compulsory auto liability statute; each state sets financial responsibility and minimum limits, and the PAP's Out-of-State Coverage clause automatically conforms Part A limits to the higher minimums of the state where the accident occurs.