What is the primary function of Personal Auto Policies?

What is the primary function of Personal Auto Policies?

• A. Cover commercial vehicles
• B. Provide health insurance
• C. Combine property damage and liability insurance for personal vehicles
• D. Insure businesses against loss

Answer: (C)

The primary function of Personal Auto Policies is to combine property damage and liability insurance for personal vehicles. This type of insurance is specifically designed for individual drivers and covers a range of risks associated with private use vehicles. It typically includes liability coverage for bodily injury and property damage caused to others in an accident, as well as collision and comprehensive coverage to protect the insured vehicle itself from damage or theft. By addressing both property damage and liability, Personal Auto Policies ensure that the policyholder is financially protected in various scenarios, whether they are at fault in an accident or their vehicle sustains damages. This comprehensive approach allows users to drive with the peace of mind that they have a safety net in case of unforeseen incidents. This option distinguishes itself by focusing exclusively on the personal use of vehicles, which is why it accurately expresses the main purpose of Personal Auto Policies. Other choices, such as covering commercial vehicles or providing health insurance, do not align with the characteristics of Personal Auto Policies, which are exclusively designed for private vehicle use and associated risks.

The primary function of Personal Auto Policies is to combine property damage and liability insurance for personal vehicles. This type of insurance is specifically designed for individual drivers and covers a range of risks associated with private use vehicles. It typically includes liability coverage for bodily injury and property damage caused to others in an accident, as well as collision and comprehensive coverage to protect the insured vehicle itself from damage or theft.

By addressing both property damage and liability, Personal Auto Policies ensure that the policyholder is financially protected in various scenarios, whether they are at fault in an accident or their vehicle sustains damages. This comprehensive approach allows users to drive with the peace of mind that they have a safety net in case of unforeseen incidents.

This option distinguishes itself by focusing exclusively on the personal use of vehicles, which is why it accurately expresses the main purpose of Personal Auto Policies. Other choices, such as covering commercial vehicles or providing health insurance, do not align with the characteristics of Personal Auto Policies, which are exclusively designed for private vehicle use and associated risks.