The transportation expenses coverage offered under part D of the personal auto policy is for $20 per day, to a maximum of $600, for temporary transportation expenses incurred by the named insured in the event of a loss to a covered auto. This endorsement increases those amounts to the limits shown in the schedule of the endorsement.

The insurer agrees through the use of PP 03 03 to pay for towing and labor costs incurred each time the covered auto or any nonowned auto is disabled. The disablement can be for any reason and the amount paid under PP 03 03 is the amount scheduled on the endorsement. The insurer declares that it will only pay for labor performed at the place of disablement; repair work at the garage after the car has been towed there is not covered by PP 03 03.

See Extended Nonowned Coverage.

Exclusion 8. of part D under the PAP is deleted through the use of this endorsement; exclusion 8. deals with loss to trailers, camper bodies, motor homes, and facilities or equipment used with such items. PP 03 07 provides coverage for direct and accidental loss to a trailer or camper body described in the endorsement and to facilities or equipment designed to be used with the described trailer or camper body; the facilities and equipment have to be in or attached to the trailer or camper body. PP 03 07 does not apply to loss to clothing or luggage, business or office equipment, or to articles that are sales samples or that are used in exhibitions.

The limit of liability provision in part D of the PAP is replaced through the use of this endorsement. PP 03 08 limits liability for a loss to an auto scheduled on the endorsement to the lesser of the amount shown in the schedule of PP 03 08, the actual cash value (ACV) of the stolen or damaged property, or the amount necessary to repair or replace the property with other property of like kind and quality. This endorsement keeps the language about adjusting the actual cash value loss for depreciation and physical condition and about not paying for betterment that appears on the PAP; but, the language referring to “the amount shown in the schedule” allows the insurer to pay an amount for a loss to a covered auto that may be even less than actual cash value.

This endorsement modifies paragraph A of the limit of liability provision in the personal auto policy. The limit for liability coverage is scheduled through the use of PP 03 09 on an each accident basis. This scheduled limit is the maximum limit of liability for all damages resulting from any one auto accident, and is the most the insurer will pay regardless of the number of insureds, claims made, or vehicles involved in the auto accident.

This endorsement deletes exclusion 11. of part D of the PAP; exclusion 11. deals with loss to custom furnishings or equipment in or upon any pickup or van. PP 03 18 offers coverage for direct and accidental loss to custom furnishings or equipment for vehicles that are scheduled on the endorsement, and this includes furnishings such as special carpeting, insulation, furniture or bars, height-extending roofs, and custom murals or decals. Note that PP 03 18 does not mimic exclusion 11. by referring only to pickups and vans; any vehicle described in the schedule of PP 03 18 has coverage for customizing equipment.

See Snowmobile Endorsement

This endorsement gives the insured several warnings up front. First, auto accidents in Mexico are subject to the laws of Mexico, not the laws of the United States; under Mexican law, auto accidents are considered a criminal offense as well as a civil matter. Second, the coverage provided by the endorsement does not meet Mexican auto insurance requirements. Third, the named insured is required to purchase liability insurance through a licensed Mexican insurance company for the provisions of PP 03 21 to apply.

PP 03 21 offers liability, med pay, uninsured motorists, damage to your auto, and no-fault coverages (depending on which coverages the insured has under his or her personal auto policy) for accidents and losses that occur in Mexico within 25 miles of the U.S. border. The coverages only apply while an insured is in Mexico on a trip of 10 days or less. The insurer promises to defend the insured under liability coverage only if the original suit for damages is brought in the United States, and if the suit does not involve a Mexican citizen or resident. And, the insurer will not pay for auto repairs to the named insured's covered auto if the repairs are made in Mexico unless the covered auto can not be driven in its damaged condition.

The insurance provided by PP 03 21 is excess over any other collectible insurance.

See Named Nonowner Coverage.

See Miscellaneous Type Vehicle Endorsement.

This endorsement revises the insuring agreement of part D of the PAP. PP 03 24 states that the insurer will pay for direct and accidental loss to covered autos and nonowned autos, but adds that a 25 percent deductible will be applied. The deductible will be a maximum of $500 and a minimum of $200 for collision coverage and $100 for other than collision coverage. PP 03 24 has a schedule for the vehicles to be listed along with an applicable limit of liability for each listed vehicle.

PP 03 34, joint ownership coverage, is an endorsement meant to address the issue of coverage for individuals who are not married but who reside together and have joint ownership of a vehicle(s). The personal auto policy states that “you” and “your” refer to the named insured and the spouse if a resident of the same household. PP 03 34 modifies this so that “you” and “your” refer to two or more individuals, “other than husband and wife“, residing in the same household or non-resident relatives who jointly own a private passenger auto, pickup, or van; the emphasis here is on the joint ownership of the covered auto, regardless of the relationship that exists between the joint owners.

This endorsement adds a definition and an exclusion to the personal auto policy. The added definition concerns “non-resident relatives”; this term means two or more persons related by blood, marriage, or adoption (including a ward or foster child) who reside in separate households. An example of this would be a father and a daughter who live in separate households, but who jointly own an auto for whatever reason. The exclusion is added to part A, the liability coverage, of the PAP and states that liability coverage is not provided for the ownership, maintenance, or use of any vehicle, other than “your covered auto”, by any non-resident relative or family member of a non-resident relative; this simply reinforces the fact that the insurer, based on both premium considerations and unforeseen risk exposures, does not want to insure any auto that is not included within the definition of “your covered auto”.

PP 03 34 includes a schedule for the description of the jointly owned vehicle(s) and a schedule listing the coverages, limits of liability, and premiums applying to each described vehicle.

The auto loan/lease coverage endorsement, PP 03 35, is an endorsement meant to address a potential gap in coverage that many insureds might face. For example, if an insured was leasing a vehicle and suffered a total loss to the auto through a collision, that insured would be liable to the leasing company for any amount equal to the difference between the amount due under the lease and the actual cash value of the auto at the time of the loss (the limit of liability under part D of the PAP). PP 03 35 states that, in the event of such a total loss, the insurer will pay any unpaid amount due on the lease for the covered auto less certain specified items. The list of specified items includes the amount paid under part D of the personal auto policy, any overdue lease payments at the time of loss, financial penalties imposed under the lease for excessive use or abnormal wear and tear, security deposits not refunded by a lessor, costs for extended warranties or life or health insurance purchased with the lease, and carry-over balances from previous leases.

Another case where this endorsement would be used involves a total loss similar to the example above, but this time involving a new car that the insured has bought through the use of time payments. In this situation, if the amount due under the finance agreement is greater than the ACV of the auto at the time of loss, the insured has the obligation to pay that amount. PP 03 35 offers the insured coverage for such an amount, less of course, the amount paid under part D of the PAP, any overdue loan payments, etc., etc.

PP 03 35 basically stands as a tool by which the insured can protect himself from a financial loss that he may or may not realize faces him in the event of the total loss of an auto that is leased or financed. The outstanding indebtedness of the insured is paid and the leasing or financing company is satisfied through the use of this particular endorsement.

This endorsement also includes a schedule to describe the covered auto(s) and to list the premiums that are charged for collision coverage and other than collision coverage.

This is a new endorsement issued by ISO that adds an exclusion to the physical damage coverage section (part D) of the PAP; the endorsement is not yet approved in all jurisdictions. PP 13 01 states that the insurer will not pay for loss to the covered auto or any nonowned auto due to diminution in value.

The reasoning behind this endorsement is this: an insured, after being involved in auto accident, claims that his auto is not worth what it was prior to the accident even if repaired promptly and professionally. The auto has suffered a loss in value because of the accident and that is a “loss” that is covered under the insuring agreement; besides, such coverage would put the insured in the position he was prior to the loss and that is the purpose of the insurance policy. The insurer is using this endorsement to make the point that part D coverage is for “direct and accidental loss” and that means only actual physical damage to the covered auto and not a loss in value. Since some courts may agree with the insured's interpretation of the meaning of “loss”, and since the PAP had no exclusion that addressed the issue, PP 13 01 was written; a diminution in value loss is now specifically excluded.

The endorsement defines “diminution in value” as “the actual or perceived loss in market or resale value which results from a direct and accidental loss”. Therefore, whether the insured merely believes his car has lost value or has a licensed body shop make a written statement that the covered auto has suffered a certain loss in value due to an accident, PP 13 01 excludes such a loss from coverage.