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Eligibility

Eligibility

A PAP may be written on a specified auto basis for qualifying vehicles owned by an individual or by a husband and wife residing in the same household. (The marital status of nonrelated individuals sharing a common household is determined by statute in most territories.)

Qualifying vehicles are four wheel (at least) motor vehicles of the private passenger type owned by the insured or leased under a written six-month (or longer) continuous contract. A vehicle rented to others or used as a public or livery conveyance is not eligible.

A private passenger auto jointly owned by two or more individuals, other than a husband and wife, residing in the same household or by two or more non-resident relatives may be insured with a PAP through the use of endorsement PP 03 34, joint ownership coverage; this endorsement is discussed in more detail later in the Personal Auto section. See Endorsements Used With Personal Auto Policy.

A PAP can be written for someone who owns no autos by attaching a named nonowner coverage endorsement to the policy—see Named Nonowner Coverage, for information on this type of coverage.

Incidentally, a pickup or van (the term “panel truck” that appeared in earlier editions of the personal auto policy has been deleted) is also eligible for a PAP; indeed, both vehicles are included in the definition of covered auto found on the policy. There are some restrictions, however; the pickup or van must have a gross vehicle weight of less than 10,000 pounds and must not be used for the delivery or transportation of goods and materials. The exceptions to this limitation on use are for the use that is incidental to the named insured's business of installing, maintaining, or repairing furnishings or equipment (for example, an electrician's van or a plumber's van), or for the use that is for farming or ranching (for example, a rancher hauling some bales of hay out on the range to feed his cattle).