Key Takeaways
- Intentional injury or damage is excluded — you cannot insure against deliberate acts
- Business use of vehicles is excluded from personal auto policies — requires commercial auto coverage
- Vehicles used for public livery (taxi, rideshare) are excluded unless specifically endorsed
- Racing and speed contests are excluded — includes organized and informal racing
- Vehicles with fewer than 4 wheels (motorcycles) and vehicles owned by employers are excluded
PAP Exclusions
The PAP contains exclusions that apply to specific coverages. Understanding these exclusions is essential for determining what is and isn't covered.
Part A (Liability) Exclusions
Major Exclusions
| Exclusion | What It Means |
|---|---|
| Intentional injury | Deliberately causing harm |
| Property you own | Damaging your own property |
| Property in your care | Borrowed property in your possession |
| Bodily injury to employee | Workers' comp applies |
| Public livery | Using vehicle as taxi/rideshare |
| Vehicle used in business | Non-covered business use |
| Vehicles with < 4 wheels | Motorcycles, ATVs |
| Racing | Organized or informal |
Business Use Exception
Limited business use IS covered:
- Commuting to work
- Occasional business errands
- Using personal car for work tasks
NOT Covered:
- Delivery vehicles
- Company-owned vehicles
- Regular commercial use
Part B (Medical Payments) Exclusions
| Exclusion | Example |
|---|---|
| Vehicle owned by insured but not covered | Second car not on policy |
| Public transportation | Bus, subway, train |
| Vehicle used as residence | Living in a van |
| Racing | Track events |
| Business use (owned by employer) | Company car |
Part C (UM/UIM) Exclusions
| Exclusion | Reason |
|---|---|
| Using vehicle without permission | Unauthorized use |
| Settling without insurer consent | Waives subrogation |
| Government-owned vehicles | Sovereign immunity |
| Workers' comp situations | Covered by WC |
Part D (Physical Damage) Exclusions
General Exclusions
| Exclusion | What It Means |
|---|---|
| Wear and tear | Normal aging/deterioration |
| Mechanical breakdown | Engine/transmission failure |
| Road damage to tires | Unless part of larger covered loss |
| Loss to electronic equipment | Stereos, GPS (unless factory) |
| Custom furnishings | Camper equipment, custom work |
| Nuclear hazard | Radiation, contamination |
| War | Military action |
| Racing | Speed contests |
Electronic Equipment
Factory-installed equipment: COVERED Aftermarket equipment: EXCLUDED (requires endorsement)
Rideshare/TNC Exclusions
Transportation Network Company (TNC) use is typically excluded:
| Period | Status | Coverage |
|---|---|---|
| Personal use | App off | Personal policy covers |
| App on, no passenger | Waiting for ride | GAP in coverage |
| Passenger in vehicle | Active ride | TNC commercial policy |
Rideshare Endorsement
Available to close the coverage gap when:
- App is on
- Waiting for passenger
- Commercial TNC coverage hasn't started
Racing Exclusion
What's Excluded:
- Organized racing
- Speed contests
- Drag racing
- Track days
- Timing/speed tests
What's NOT Excluded:
- Driver education courses
- Defensive driving courses
- Parking lot skills tests
Nuclear and War Exclusions
These apply to ALL parts of the PAP:
| Exclusion | Coverage |
|---|---|
| Nuclear hazard | No coverage anywhere |
| War or military action | No coverage anywhere |
| Rebellion or insurrection | No coverage anywhere |
Motorcycles and Other Vehicles
Excluded Vehicles
| Vehicle Type | Why Excluded |
|---|---|
| Motorcycles | Require separate policy |
| Motor scooters | <4 wheels |
| ATVs | Off-road, recreational |
| Golf carts (off premises) | Recreational |
| Go-karts | Recreational |
Exception: Golf Carts
Golf carts MAY be covered if:
- Used only on golf course
- Used only on your own property
Practical Applications
Scenario: Uber Driver
Sarah uses her personal car for Uber. Her personal policy will:
- Cover her during personal use (app off)
- NOT cover her when the app is on waiting for rides
- NOT cover her during active Uber trips
Solution: Purchase rideshare endorsement OR verify Uber's commercial coverage applies.
Scenario: Pizza Delivery
Mike delivers pizza in his personal car. His personal policy will:
- NOT cover accidents during delivery (regular business use)
Solution: Requires commercial auto policy or employer's coverage.
A personal auto policy will typically exclude coverage when the vehicle is used for:
An aftermarket stereo system installed in a vehicle is:
A rideshare (Uber/Lyft) driver has the app ON but no passenger yet. Their personal auto policy will:
5.7 No-Fault Insurance and PIP
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