Only private passenger autos, pickup trucks, and vans are eligible for coverage under the personal auto question. Additionally, the vehicle must be owned by an individual or by a husband and wife who are residents in the same household. These criteria exclude a considerable range of vehicles, among them: motorcycles, motor homes, golf carts, dune buggies, and all-terrain vehicles. If eligible, such vehicles can be insured, under the rules and forms of Insurance Services Office (ISO), through a personal auto policy by attaching the miscellaneous type vehicle endorsement, PP 03 23, to the policy. This is especially convenient for insureds who own miscellaneous type vehicles in addition to private passenger cars, all of which can now be insured under the same policy.

The policy defines “miscellaneous type vehicle” as a motor home, motorcycle, or other similar type vehicle, all terrain vehicle, dune buggy, or golf cart. Consequently, the endorsement can be used for virtually any type of motor vehicle that meets other personal auto eligibility requirements—nonfleet risk, not owned by corporation or partnership (other than farm family), etc. One exception is snowmobiles, for which ISO has prepared a separate endorsement, see Snowmobile Endorsement. The miscellaneous type vehicle endorsement can be used to provide all of the usual coverages of the personal auto policy: liability, medical payments, uninsured motorists, collision, and other than collision coverage. The endorsement includes a schedule that must be completed with descriptions of the vehicles and premiums and limits of liability for each coverage.

The endorsement changes the general definition of “your covered auto” and a number of liability provisions of the regular personal auto policy. All other provisions of the personal auto policy remain intact and applicable to the insured miscellaneous vehicle. The provisions of the endorsement do not affect the coverage of the personal auto policy as it may apply to private passenger types insured in the same policy.

Like the personal auto policy, the endorsement uses the defined term, “your covered auto.” The term includes any miscellaneous type vehicle described in the endorsement schedule or policy declarations. The definition also includes any newly acquired miscellaneous type vehicle of the same type as shown in the schedule or declarations. And, the definition includes a newly acquired auto, other than a miscellaneous type vehicle, that fits the description as noted on the endorsement. This description matches the one found on the personal auto policy; see Personal Auto Definitions.

Also qualifying as “your covered auto” is an owned or nonowned “trailer” as defined in the personal auto policy. Nonowned miscellaneous type vehicles meet the definition while used as a temporary substitute for any other covered auto that is out of normal use because of its breakdown, repair, servicing, loss, or destruction. Note that the temporary substitute can be any nonowned miscellaneous type vehicle or any nonowned auto. The miscellaneous type vehicle endorsement extends coverage for damage to the named insured's auto, by expanding the definition of nonowned auto. PP 03 23 adds the following to the definition of nonowned auto: “any motor home, motorcycle, or other similar type vehicle, all terrain vehicle, dune buggy, or golf cart that you do not own while used as a temporary substitute for your covered auto that is out of normal use because of its breakdown, repair, servicing, loss, or destruction.”

The endorsement defines the named insured and family members as insureds for the ownership, maintenance, or use of “your covered auto (as defined on the endorsement).” It also extends insured status to any other person for the use of “your covered auto.” Other persons using “your covered auto” must do so with a reasonable belief that they are entitled to do so. In addition, the endorsement covers the vicarious liability of any person or organization for the acts or omissions of another insured person.

PAP excludes liability coverage for the ownership, maintenance, or use of any vehicle with less than four wheels. Form PP 03 23 extends coverage to such vehicles that are insured for liability coverage under PP 03 23. A similar amendment is the only change the endorsement makes to regular medical payments coverage.

The endorsement also contains an optional exclusion, involving the passenger hazard. The insured may choose to exclude passenger liability by marking the appropriate box on the endorsement. With this alternative, there is no liability coverage for any insured for bodily injury to any insured while occupying the described miscellaneous type vehicle.

Endorsement PP 03 23 amends part D of the personal auto policy. Added to the insuring agreement is coverage for direct and accidental loss to facilities and equipment designed to be used with the covered auto which is a motor home. The facilities and equipment have to be in or attached to the motor home for coverage to apply, and the motor home has to be shown in the schedule of the endorsement. The endorsement also extends coverage to nonowned autos that are motor homes, motorcycles, all-terrain vehicles, dune buggies, and golf carts used as temporary substitutes for the covered autos that are out of normal use due to breakdown, repair, servicing, or loss.

The miscellaneous type vehicle endorsement amends the usual limit of liability provision for coverage for damage to a vehicle described in the schedule. It limits recovery to the lesser of: (1) the amount shown in the schedule or in the declarations; (2) the actual cash value of the stolen or damaged property; or (3) the amount necessary to repair or replace the property with other property of like kind and quality. Any payment for a loss will be reduced by any applicable deductible; and, if loss to more than one covered auto results from the same collision, only the highest applicable deductible will apply. An adjustment for depreciation and physical condition will be made in determining actual cash value at the time of loss. Finally, if a repair or replacement results in better than like kind or quality, the insurer will not pay for the amount of the betterment.

The insured should be aware of that final sentence concerning a betterment of the damaged vehicle. Even though the insurer declares that it will pay “the amount necessary to repair or replace the property with other property of like kind or quality,” if that amount includes a betterment of the damaged vehicle, the insured is not going to receive what he may believe is the total “amount necessary.” The insured will receive an amount that will put him in the same position as before the loss— the purpose of insurance, after all— and not an amount that will leave the insured with a more valuable item.

Because the endorsement encompasses a wide range of vehicle types, there is no single rating procedure for all eligible vehicles. However, the miscellaneous types rule of the personal auto manual, in combination with the state exception pages, has rules and rates for motorcycles, mopeds, motorscooters, motorbikes, and similar motor vehicles not used for business; golf carts; motor homes; and dunebuggies. The general rules for rating each class are quite uncomplicated. Only the general rules for motorcycles and similar types are discussed here for example purposes. As always, the state exception pages should be consulted prior to following general rules, because the rating of miscellaneous types is often subject to territorial variations.

Liability premiums for motorcycles and other similar vehicles begin with the appropriate base liability premium (that which would apply to a private passenger auto in the insured's territory). That figure is then multiplied by a modifier expressed as a percentage. These modifiers, which range from 40 percent to 200 percent, are displayed in a table in the general rule for miscellaneous types. The table is split between “operator under age 25″ and “all other operators.” Each category has modifiers that increase with engine size, i.e., displacement in cubic centimeters. No other rating or classification factors are used.

As an example: the all other operators table shows that a 35 year old operator with a 500cc motorcycle would be charged 90 percent of base premium. If the base premium for $50,000 combined single limit liability coverage in the operator's territory is $200, the liability premium is computed as shown: .90 multiplied by $200 equals $180.

Collision and comprehensive premiums are figured in much the same way as liability premiums. There is a table in the personal vehicle manual rules showing collision premium modifiers and another for comprehensive premium modifiers, each subdivided as to “operator under 25″ and “all other operators.” These tables show modifiers that increase with the vehicle's original cost new. (Original cost new, incidentally, is commonly understood to include any taxes and trade-in allowances.) The percentages from these tables are applied based on the model year of the vehicles in question. For 1990 and subsequent model year vehicles, the charge is the pertinent percentage from the tables applied to the symbol 2 physical damage base rate (found on the rate pages for the appropriate model year); for 1989 and prior model year vehicles, the charge is the percentage applied to the symbol 7 physical damage base rate (also found on the rate pages).

When the miscellaneous type vehicle endorsement insures a motor home, an additional endorsement is attached to the policy, entitled miscellaneous type vehicle amendment (motor homes), PP 03 28. This endorsement excludes liability, medical payments, and physical damage coverage on the motor home when the named insured rents or leases it to others. However, coverage for these items can be bought back in the same endorsement. The premium is based on the number of weeks per year that the motor home is rented. Note, however, that the liability exclusion does not apply up to the financial responsibility limits of any compulsory insurance law in the particular state in which the motor home is principally garaged.

The following additional exclusion also applies to any motor home that is “your covered auto:” there is no coverage for loss to the motor home or its covered property due to fraudulent acquisition by any person or organization that occurs while the motor home is rented to, used by, or in the care of that person or organization. The endorsement does not provide the means of buying back this exclusion.