1. Forms
2. PP
3. PP-00-01

Personal Auto Policy (PP 00 01)

The Personal Auto Policy (PP 00 01) is a foundational insurance form used in the United States for providing a package of coverages for personally owned or leased private passenger autos. Its primary function is to offer financial protection against losses arising from auto accidents and other vehicle-related incidents. This policy typically combines several key coverages: liability (for bodily injury and property damage to others), medical payments (for the insured and passengers), uninsured/underinsured motorists coverage (for losses caused by drivers with insufficient or no insurance), and physical damage coverage (comprehensive and collision) for the insured's own vehicle. The Declarations page (often referred to with a similar code, like PP DS 00) personalizes the PP 00 01 by specifying the named insured, covered autos, selected coverages, limits, deductibles, and premium.

Classes of Business It Applies To

The PP 00 01 is designed for personal auto exposures, meaning it applies to individuals and families, not businesses. It's intended for private passenger autos, which include sedans, SUVs, station wagons, and similar vehicles. It can also cover pickups and vans, provided they are not used primarily for business purposes (other than farming or ranching). Leased vehicles can also be covered if the lease agreement is for a continuous period of at least six months.

Real-world examples include:

• An individual owning a car for commuting to work and personal errands.
• A family with multiple vehicles used for household purposes.
• A college student leasing a car while away at school.
• An individual who occasionally uses their personal vehicle for volunteer activities (recent policy editions clarify that this typically does not violate the "public or livery conveyance" exclusion).

It's crucial to note that the PP 00 01 is generally not intended for vehicles used as a public or livery conveyance (e.g., taxis, ride-sharing services when actively engaged in transporting passengers for a fee). Specific endorsements or separate commercial auto policies are usually required for such exposures.

Special Considerations

Several important considerations apply when using or evaluating the PP 00 01:

• Newly Acquired Autos: The policy provides some automatic coverage for newly acquired vehicles, but there are specific reporting requirements and time limits (e.g., often 14 days) for different coverages to apply, especially for physical damage or if the new vehicle is an additional auto rather than a replacement. Failure to notify the insurer within the specified timeframe can result in no coverage for the new vehicle.
• Business Use: While incidental business use of a private passenger auto might be acceptable, regular or primary business use (especially for deliveries or artisan use) typically falls outside the scope of the PP 00 01 and would necessitate a Business Auto Policy (like the CA 00 01). The policy contains exclusions for vehicles used while engaged in most business pursuits, though there are exceptions for farming/ranching and for the use of private passenger autos, pickups, or vans in a business not involving auto sales, repair, servicing, storing, or parking.
• Excluded Uses/Vehicles: The policy explicitly excludes certain uses like racing. It also excludes coverage for vehicles with fewer than four wheels (like motorcycles, though some endorsements might be available) or those designed mainly for off-road use, with some exceptions (e.g., use in a medical emergency or non-owned golf carts). Vehicles enrolled in personal vehicle sharing programs are also typically excluded under newer editions of the form.
• Custom Equipment: Coverage for custom furnishings or equipment (e.g., special carpeting, height-extending roofs, custom murals on vans) is often limited or excluded, though a small amount of coverage (e.g., $1,500) might be built in, or higher limits can be added by endorsement.
• Territorial Limits: Coverage is generally provided for accidents and losses occurring within the United States, its territories or possessions, Puerto Rico, and Canada. Coverage in Mexico is usually very limited or requires a specific endorsement, and insureds are advised to purchase separate Mexican auto insurance.
• Policy Editions: The PP 00 01 is periodically updated by Insurance Services Office (ISO). Insurers may adopt new editions at different times, so it's vital to refer to the specific edition date on the policy (e.g., PP 00 01 09 18 is a more recent edition than PP 00 01 01 05). Older editions might have different terms and conditions.
• State Variations: While the PP 00 01 is a standard form, states may have mandatory endorsements or laws that modify its provisions.

Key Information for Agents and Underwriters

Agents and underwriters need to pay close attention to several aspects when dealing with the PP 00 01:

• Risk Assessment:
  • Driver Information: Accurately identify all household members of driving age and other regular operators. Driving records (MVRs), claims history, and experience are key underwriting factors.
  • Vehicle Usage: Thoroughly investigate how the vehicle will be used. Is it for commuting, pleasure, or are there any business or ride-sharing exposures? Clarify if it's used for volunteer purposes.
  • Garaging Location: The primary garaging location affects rating and potentially coverage interpretations if an accident occurs in a different state with different financial responsibility laws.
  • "Your Covered Auto": Clearly define which vehicles are covered, including trailers. Note that a vehicle is considered "owned" if leased under a written agreement for at least 6 continuous months.
• Coverage Gaps and Endorsements:
  • Identify potential coverage gaps, such as for custom equipment, towing and labor, rental reimbursement, or travel to Mexico, and offer appropriate endorsements.
  • For non-owned vehicles regularly furnished or available for use (e.g., a company car), the standard PP 00 01 provides limited coverage; an endorsement like the Extended Non-Owned Coverage (PP 03 06) might be needed.
  • The "public or livery conveyance" exclusion is a significant one, especially with the rise of transportation network companies (TNCs). Ensure clients understand this limitation. While some newer forms may offer limited TNC coverage by endorsement, it's often a separate product.
• Pricing and Rating:
  • Accurate information on drivers, vehicles, usage, garaging location, and desired coverages/limits/deductibles is crucial for correct pricing.
  • Understand how "newly acquired auto" provisions impact interim coverage and the importance of timely policy updates.
  • Be aware of how the "Other Insurance" clause works, especially for non-owned autos where the PP 00 01 is typically excess over other collectible insurance.
• Underwriting Guidelines:
  • Adhere to company-specific underwriting guidelines, which may be more restrictive than ISO eligibility.
  • The PP 00 01 is not designed for high-risk drivers or unusual vehicles that might be better suited for a "Special Personal Auto Policy" (SPAP - like form PP 90 01) or the assigned risk market.
  • The "Duties After an Accident or Loss" section outlines insured's responsibilities, and failure to comply can prejudice coverage. This includes prompt notification and cooperation.

The PP DS 00, or a similarly coded Declarations page, is integral to the PP 00 01, as it contains the specific details that tailor the policy to the individual insured. While "PP DS 00" itself wasn't extensively detailed as a standalone form analysis, its function is to list the choices made by the insured that define the scope of coverage under the PP 00 01. The relationship between PP 00 01 and forms like PP/DS in the context of SAP is entirely unrelated to personal auto insurance; those refer to Production Planning and Detailed Scheduling in enterprise resource planning software.