What losses are excluded from coverage in the liability section of the Personal Auto Policy?

• A. Intentional injury or damage, damage to property owned or transported by the insured, use of a vehicle without permission
• B. Theft of the vehicle
• C. Natural disasters
• D. All medical expenses

Answer: (A)

In the liability portion of a Personal Auto Policy, coverage is for damages you are legally liable to others as a result of operating your vehicle, but several losses are specifically excluded. The best answer reflects three common exclusions:

• Intentional injury or damage: the policy does not cover harm you deliberately cause. Liability coverage is intended for accidents, not for intentional acts.

• Damage to property owned or transported by the insured: you can’t claim against yourself under liability for damages to your own property or property you’re transporting. The purpose of liability coverage is benefiting third parties, not you or your own property.

• Use of a vehicle without permission: if someone uses your car without your authorization, the liability coverage typically doesn’t apply, since the insured’s protection is limited to legitimate, authorized use.

The other options don’t fit the typical liability exclusions. Theft of the vehicle is handled by physical damage (comprehensive or collision) coverage, not by liability. Natural disasters aren’t listed as standard liability exclusions in this context, and medical expenses relate to medical payments coverage, a separate part of the policy, not to liability exclusions.