8.7 Endorsements for the Personal Auto Policy Copy

Stated Amount Coverage

The insured states an amount for valuation of the car and believes that is the amount he should be paid in the event of a total loss. This endorsement is typically used to provide physical damage to an older car (10 years or more) for which the symbol no longer provides an adequate premium for the exposure.

Excess Sound Reproducing Equipment, Audio, Visual and Data Electronic Equipment, and Tapes, Records, Discs and Other Media 

The PAP automatically covers electronic equipment that is permanently installed in the vehicle. This equipment includes all of the various types indicated in the endorsement title. It also covers–at no charge–such equipment that operates “solely” from a vehicle’s electrical system and is “removable from a housing’ that is permanently installed in the vehicle. The policy also covers accessories used with such equipment.

The endorsement has two separate “limit of liability provisions.”

• The first applies to sound reproducing equipment, audio, visual and data equipment It agrees to pay the lesser of, the following for such equipment: the amount indicated; the actual cash value of the stolen or damaged property; or what is necessary to repair or replace the property with other property “of like kind and quality.”
• The limit applying to media (tapes, records, disks, etc.) has the same final two provisions as in the above paragraph. However, any payment is limited to a MAXIMUM OF $200.

Limited Mexico Coverage   

This endorsement extends all coverages of the PAP to anything that happens to the insured’s car in Mexico but within 25 miles of the U.S. border. It applies only if the insured is in Mexico for 10 days or less. The insured must purchase Mexican insurance for this endorsement to apply.

Mexican Collision Coverage

For an additional premium, the insured may purchase collision coverage on his car while it is being driven in Mexico. Unlike the “limited Mexico coverage” described above, this endorsement applies anywhere in Mexico-not just within 25 miles of the border. Like the above endorsement, the insured may not have the car repaired, in Mexico, unless it cannot be driven. In that case, the insurer determines the ACV of the auto using United States standards, not Mexican.

Sound Receiving and Transmitting Equipment

This endorsement covers such equipment that is not specifically designed to operate off the electrical system of the car. It covers the following (only while installed in the insured’s covered auto), including their accessories:

• Citizens band radio;
• Two-way mobile radio;
• Telephone; or
• Scanning monitor receiver.

Note that the endorsement does not cover radar detection equipment.

Supplementary Medical Payments Coverage 

The basic PAP provides medical payments coverage for the named insured and any family member. The coverage applies when either of these is occupying or is struck by any motor vehicle or trailer. It also covers anyone else while occupying the named insured’s covered auto.

Tapes, Records or Other Devices

This endorsement provides up to $200 coverage for tapes, discs, etc. used with a car’s sound reproducing equipment. The tapes, etc. must belong to the named insured and be in the named insured’s “covered auto” at the time of loss, for coverage to apply.

The endorsement removes the parts of physical damage exclusion 5 that apply to such items. No deductible applies to this coverage.

Towing and Labor Costs Coverage 

When an insured’s vehicle is disabled and needs to be towed, jump-started, or otherwise serviced on the road, this endorsement pays a certain amount per disablement for the service. If the insured has this coverage for at least one of his owned vehicles, the endorsement provides the same coverage to a non-owned auto the insured may be driving.

The Base Limit is $25 Per Disablement, but most offer higher limits for an additional premium. Note that the endorsement limit companies is the payment for labor performed at the place of disablement. Once the car is brought to a repair shop the insurer’s obligation for “labor costs” ceases.

Miscellaneous Type Vehicles

Many people own vehicles that do not fit the definition of private passenger automobile, but are not commercial vehicles, either. Such vehicles include:

• Motor homes;
• Travel trailers;
• Motorcycles, mopeds, motor scooters, motorbikes, go-carts, and other similar vehicles;
• Snowmobiles and all-terrain vehicles;
• Dune buggies;
• Golf carts;
• Antique and classic autos; and
• Electric autos.