17 Free Pennsylvania Property & Casualty Practice Questions: The Personal Automobile Policy (2026)
How to Use This Personal Auto Set
The Personal Automobile Policy is 10% of the Pennsylvania Property and Casualty exam, about 15 items, which makes it one of the largest single policy blocks. The questions test who counts as an insured, how split limits are read, and which coverage pays for which loss.
Pennsylvania's auto statutes are tested separately; this set concentrates on the policy itself, and the Pennsylvania property and casualty law set covers the Motor Vehicle Financial Responsibility Law. Work each stem carefully, because small changes in wording move the answer between collision and comprehensive, or between an insured and a stranger.
Practice Questions 1-6: Who Is Insured and How Liability Limits Work
Insured status for permissive users, split limits written as three numbers, and the line between collision and comprehensive. The golf cart question shows an endorsement that widens what the policy will cover.
Question 1 (Chapter 3)
Under the Personal Automobile Policy (PAP) liability coverage, which of the following individuals is automatically considered an 'insured' while driving the insured's covered auto with permission?
- A) A licensed driver who is excluded by name on the policy declarations.
- B) An unlicensed teenager borrowing the car to run an errand.
- C) A friend using the car without the insured's knowledge or consent.
- D) A neighbor who borrows the truck to move furniture, with the insured's permission.
Show answer & explanation
Answer: D
Under the PAP liability coverage, an 'insured' includes any person using the covered auto with the permission of the named insured. Option D describes permissive use, making the neighbor an insured. Option A is incorrect because an excluded driver is not an insured, even with permission. Option B is incorrect because an unlicensed driver is not automatically an insured; while permissive use may apply, the policy may exclude unlicensed drivers, and they are not automatically covered. Option C is incorrect because use without knowledge or consent is not permissive use, so the friend is not an insured.
Question 2 (Chapter 3)
A Pennsylvania resident owns a golf cart used exclusively on a private golf course. They wish to have liability coverage for this vehicle under their Personal Automobile Policy. Which endorsement is required?
- A) PP 03 03 (Towing and labor costs)
- B) PP 03 06 (Extended non-owned coverage for named individual)
- C) PP 03 23 (Miscellaneous type vehicle)
- D) PP 03 34 (Joint ownership coverage)
Show answer & explanation
Answer: C
The PP 03 23 endorsement covers miscellaneous type vehicles, such as golf carts, snowmobiles, or ATVs, when added to the Personal Automobile Policy, subject to restrictions. Option A is for towing and labor. Option B extends liability to a named individual driving non-owned vehicles. Option D covers joint ownership of a vehicle. None of these apply to adding a golf cart for liability coverage.
Question 3 (Chapter 3)
A Pennsylvania driver's Personal Automobile Policy shows liability limits of 100/300/100. If the driver is at fault in an accident causing $120,000 in property damage to multiple vehicles, what is the maximum the insurer will pay for property damage under this policy?
- A) $120,000
- B) $300,000
- C) $500,000
- D) $100,000
Show answer & explanation
Answer: D
The liability limits 100/300/100 represent $100,000 bodily injury per person, $300,000 bodily injury per accident, and $100,000 property damage per accident. The property damage limit is $100,000, so the insurer will pay no more than this amount for property damage, regardless of the number of vehicles damaged. Option A is incorrect as it matches the damage amount but ignores the policy limit. Option B is the bodily injury per accident limit. Option C is not a standard limit split.
Question 4 (Chapter 3)
Which of the following is NOT covered under the comprehensive coverage of a Personal Automobile Policy?
- A) Damage from a falling tree branch.
- B) Damage from a fire.
- C) Damage from a collision with a deer.
- D) Damage from hitting a pothole.
Show answer & explanation
Answer: D
Comprehensive coverage (other than collision) covers losses such as falling objects (tree branch), fire, and collision with animals (like a deer). Damage from hitting a pothole is considered a collision loss because it involves impact with the road surface, which is treated as an object under the collision definition. Therefore, pothole damage is not covered under comprehensive; it would require collision coverage. Options A, B, and C are all covered under comprehensive.
Question 5 (Chapter 3)
A Pennsylvania driver's Personal Automobile Policy includes uninsured motorists coverage. The driver is injured in a hit-and-run accident where the at-fault driver flees and cannot be identified. Which of the following is required for the uninsured motorists coverage to apply?
- A) The accident must be reported to police within 24 hours.
- B) The insured must have collision coverage on the policy.
- C) The insured must have medical payments coverage on the policy.
- D) The insured must have sustained bodily injury.
Show answer & explanation
Answer: D
Uninsured motorists coverage under the Personal Automobile Policy applies only for bodily injury sustained by the insured. While prompt reporting is advisable and may be required by state law or policy conditions, the PAP itself does not specify a 24-hour police report requirement for UM coverage. Collision and medical payments coverages are not prerequisites for UM bodily injury coverage. Option D correctly states that bodily injury must be sustained for the coverage to trigger.
Question 6 (Chapter 3)
A Pennsylvania driver's Personal Automobile Policy shows liability limits of 50/100/50. If the driver is at fault in an accident causing $75,000 in bodily injury to two people ($40,000 and $35,000), what is the maximum the insurer will pay for bodily injury under this policy?
- A) $50,000
- B) $100,000
- C) $75,000
- D) $150,000
Show answer & explanation
Answer: C
The bodily injury limits are $50,000 per person and $100,000 per accident. The injuries are $40,000 and $35,000, neither exceeding the $50,000 per-person limit, and the total $75,000 is within the $100,000 per-accident limit. Thus, the insurer pays the full $75,000. Option A incorrectly applies the per-person limit to the total. Option B incorrectly ignores the per-person limit. Option D doubles the per-accident limit erroneously.
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Practice Questions 7-12: Collision or Comprehensive, Supplementary Payments and Conditions
Which coverage responds when a driver avoids or hits an animal, what supplementary payments are, and which duties after a loss the policy imposes. Permissive use returns at the end of the group.
Question 7 (Chapter 3)
A Pennsylvania insured's vehicle is damaged when it rolls over while avoiding a deer. The insured has both collision and comprehensive coverage. Which coverage applies to this loss?
- A) Comprehensive coverage applies because the initiating event was avoiding an animal.
- B) Both collision and comprehensive coverage apply, and the insured can choose which to use.
- C) Collision coverage applies because the loss resulted from the vehicle's overturn.
- D) Neither collision nor comprehensive coverage applies; this is a liability-only loss.
Show answer & explanation
Answer: C
Collision coverage applies to upset of the vehicle (including rollover), regardless of the initiating event. Comprehensive coverage does not cover upset/overturn; it covers specific perils like missiles, falling objects, fire, theft, etc. Avoiding a deer does not change the nature of the loss to a comprehensive peril. The insured cannot choose; the policy defines which coverage applies based on the cause of loss.
Question 8 (Chapter 3)
Under the Personal Automobile Policy liability coverage, which of the following is a supplementary payment?
- A) The cost of bail bonds required because of an accident.
- B) The insured's lost wages due to time spent assisting in the investigation.
- C) Interest accruing on the judgment after the suit against the insured.
- D) Damages for pain and suffering awarded to the injured party.
Show answer & explanation
Answer: A
Supplementary payments under the PAP liability coverage include the cost of bail bonds (up to $250) required because of an accident, premiums on bonds to release attachments in an appeal suit, and reasonable expenses incurred at the insurer's request (e.g., lost wages for assisting in investigation, but not the insured's own lost wages). Interest on the judgment and damages for pain and suffering are part of the damages, not supplementary payments.
Question 9 (Chapter 3)
Which endorsement must be added to a Pennsylvania Personal Automobile Policy to extend liability coverage to a specific named individual when they regularly drive a non-owned vehicle, such as a company car provided by their employer?
- A) PP 01 51 (Amendment of policy provisions—Pennsylvania)
- B) PP 03 03 (Towing and labor costs)
- C) PP 03 23 (Miscellaneous type vehicle)
- D) PP 03 06 (Extended non-owned coverage for named individual)
Show answer & explanation
Answer: D
The PP 03 06 endorsement specifically extends liability coverage to a named individual for the use of non-owned vehicles they do not own but operate regularly, such as a company car. Option A (PP 01 51) amends the policy to comply with Pennsylvania law but does not extend non-owned coverage. Option B (PP 03 03) covers towing and labor expenses. Option C (PP 03 23) covers miscellaneous vehicles like ATVs or golf carts under the named insured's policy, not extending liability to a driver of a non-owned vehicle.
Question 10 (Chapter 3)
A Pennsylvania insured's Personal Automobile Policy includes collision coverage with a $250 deductible. The insured's vehicle is damaged in a collision with an animal. The damage amounts to $1,500. What amount will the insurer pay under the collision coverage?
- A) $1,250
- B) $1,500
- C) $0 under collision coverage; contact with an animal is paid under other than collision (comprehensive) coverage
- D) $250
Show answer & explanation
Answer: C
The Personal Auto Policy defines contact with a bird or animal as a loss 'other than collision', so the damage is settled under comprehensive coverage and its deductible, not under collision. If the insured carried only collision, nothing would be paid. A and B apply the collision deductible to a loss that collision does not cover; D merely returns the deductible amount.
Question 11 (Chapter 3)
Which of the following is a condition of the Personal Automobile Policy that, if violated, could result in denial of a claim?
- A) Failing to maintain a minimum grade point average if the insured is a student.
- B) Refusing to allow the insurer to inspect the damaged vehicle.
- C) Having a lapse in coverage for less than 30 days.
- D) Driving the vehicle outside of Pennsylvania for more than 30 consecutive days.
Show answer & explanation
Answer: B
The PAP requires the insured to allow the insurer to inspect the damaged vehicle as a condition of coverage. Refusing to do so violates the policy conditions and can jeopardize or deny the claim. Option A is irrelevant; GPA is not a policy condition. Option C is not a direct condition of the PAP; lapses affect eligibility but are not a claim condition. Option D is not a standard PAP condition; territorial limits are broad, and temporary out-of-state use is typically permitted.
Question 12 (Chapter 3)
A Pennsylvania insured lends their car to a friend who is not a household member. The friend has an accident while driving the car with the insured's permission. Which statement is correct regarding liability coverage under the Personal Automobile Policy?
- A) Liability coverage does not apply because the friend is not a household member.
- B) Liability coverage applies only if the friend is listed as a driver on the policy.
- C) Liability coverage applies because the friend is using the car with the insured's permission.
- D) Liability coverage is reduced by 50% for permissive users who are not household members.
Show answer & explanation
Answer: C
Under the PAP liability coverage, 'insured' includes any person using the insured's covered auto with the permission of the named insured, regardless of household membership or whether they are listed on the policy. Permission is the key factor. Option A is incorrect because household membership is not required. Option B is incorrect because listing on the policy is not required for permissive use. Option D is incorrect; there is no automatic reduction in coverage for permissive users.
Practice Questions 13-17: Endorsements, Borrowed Cars and Named Individuals
The Pennsylvania amendatory endorsement, supplementary payments again, a borrowed vehicle, joint ownership and extended non-owned coverage. The common thread is that endorsements extend who or what is covered but do not create new limits.
Question 13 (Chapter 3)
Which of the following statements about the 'Amendment of policy provisions—Pennsylvania' (PP 01 51) endorsement is correct?
- A) The endorsement adds coverage for custom equipment and upgrades to the insured's vehicle.
- B) The endorsement incorporates Pennsylvania-specific legal requirements into the policy, such as those relating to cancellation and nonrenewal.
- C) The endorsement provides coverage for towing and labor costs when the vehicle is disabled.
- D) The endorsement is required for all Personal Automobile Policies issued in Pennsylvania.
Show answer & explanation
Answer: B
PP 01 51, Amendment of Policy Provisions — Pennsylvania, incorporates Pennsylvania-specific legal requirements into the PAP, including provisions related to cancellation, nonrenewal, and other state mandates. It does not add custom equipment coverage (A is incorrect), does not provide towing and labor (C is incorrect; that is PP 03 03), and while commonly used, it is not legally required for all PAPs in Pennsylvania (D is incorrect; it is a standard endorsement to ensure compliance but not mandated by law for every policy).
Question 14 (Chapter 3)
After an accident, a Pennsylvania insured fails to notify the insurer promptly and instead settles directly with the other party for $5,000 without the insurer's consent. Which consequence is most likely under the Personal Automobile Policy conditions?
- A) The insurer must still defend the insured if a lawsuit arises from the settlement.
- B) The settlement is binding on the insurer because the insured acted in good faith.
- C) The insurer's obligation to pay supplementary payments is unaffected.
- D) The insurer may deny coverage for violating the duties after an accident.
Show answer & explanation
Answer: D
The PAP requires the insured to notify the insurer promptly after an accident and to not voluntarily assume liability or settle claims without the insurer's consent. Failure to comply with these duties can result in a denial of coverage. Option A is incorrect because the insurer is not obligated to defend if coverage is voided due to breach of conditions. Option B is incorrect because a settlement without consent is not binding on the insurer. Option C is incorrect because supplementary payments (like defense costs) are only payable if coverage applies, which may be denied due to the breach.
Question 15 (Chapter 3)
A Pennsylvania insured’s Personal Automobile Policy (PAP) includes liability coverage with limits of 100/300/50. The insured is involved in an accident while driving a borrowed vehicle (not owned by the insured or a family member). The borrowed vehicle is not listed on the PAP’s declarations page. Which statement is correct regarding the PAP’s liability coverage for this scenario?
- A) The PAP does not provide liability coverage for the borrowed vehicle because it is not an ‘owned auto’ or a ‘non-owned auto’ as defined in the policy.
- B) The PAP provides liability coverage for the borrowed vehicle up to the policy’s limits because the insured has permission to drive it.
- C) The PAP provides liability coverage for the borrowed vehicle only if the owner of the borrowed vehicle has no other insurance.
- D) The PAP provides liability coverage for the borrowed vehicle up to $10,000 in liability limits, regardless of the policy’s stated limits.
Show answer & explanation
Answer: B
Liability coverage under the PAP extends to non-owned autos, including borrowed vehicles, driven by the named insured with the owner's permission, up to the policy's own limits. Being listed on the declarations page is not a requirement for this coverage. Option A is wrong because a permissively-driven borrowed vehicle does fit the policy's definition of a non-owned auto. Option C is wrong because coverage does not depend on the owner lacking other insurance. Option D is wrong because there is no separate reduced cap for non-owned autos.
Question 16 (Chapter 3)
A Pennsylvania insured's Personal Automobile Policy (PAP) includes the Joint Ownership Coverage endorsement (PP 03 34) because the insured and their unmarried partner, who lives with them, jointly own two vehicles: Vehicle A and Vehicle B. The insured adds Vehicle C, a third vehicle, to the policy without telling the partner. The partner is involved in an accident while driving Vehicle C, causing $50,000 in damages. Which statement is correct regarding the PAP's liability coverage for this claim?
- A) The PAP will cover the claim because the PP 03 34 endorsement ensures both joint owners are covered for any vehicle listed on the policy.
- B) The PAP will not cover the claim because Vehicle C was added to the policy without the partner’s knowledge, violating the endorsement’s conditions.
- C) The PAP will cover the claim only if the partner is listed as a named insured on the policy’s declarations page.
- D) The PAP will cover the claim only if the accident occurred while the partner was driving Vehicle A or Vehicle B.
Show answer & explanation
Answer: A
The Joint Ownership Coverage endorsement (PP 03 34) exists for co-owners who are not married to each other, such as unmarried partners or non-resident relatives, who would otherwise not qualify as a 'family member'. It treats both co-owners as named insureds, so each is an insured for any covered auto on the policy, including a vehicle added later. B invents a notification condition that does not exist. C is wrong because the endorsement itself confers named-insured status. D is wrong because coverage is not limited to the vehicles originally owned jointly.
Question 17 (Chapter 3)
A Pennsylvania insured’s Personal Automobile Policy (PAP) includes the PP 03 06 (Extended Non-Owned Coverage for Named Individual) endorsement. The named individual, Sarah, drives her employer’s company car (not insured under the employer’s commercial policy) and causes $45,000 in property damage to another vehicle. The PAP’s liability limits are 100/300/50. Which statement is correct regarding the insurer’s liability for this claim?
- A) The insurer will pay the full $45,000 under the PP 03 06 endorsement, as it provides broader liability coverage for non-owned vehicles.
- B) The insurer will pay up to the $50,000 property damage limit of the PAP, as the PP 03 06 endorsement extends liability coverage for named individuals driving non-owned vehicles.
- C) The insurer will deny the claim because the company car is not listed on the PAP’s declarations page.
- D) The insurer will pay only $10,000, the maximum limit for non-owned vehicles under the PP 03 06 endorsement.
Show answer & explanation
Answer: B
The PP 03 06 endorsement extends liability coverage for a named individual (Sarah) while driving a non-owned vehicle (the company car), but it does not create a separate limit. The claim is subject to the PAP’s underlying liability limits (100/300/50), so the insurer will pay up to the $50,000 property damage limit. Option A is incorrect because the endorsement does not increase coverage limits. Option C is wrong because the endorsement explicitly covers non-owned vehicles driven by the named individual. Option D is incorrect because there is no $10,000 sublimit for this endorsement.
The Personal Auto Mistakes That Cost Marks
Misreading split limits. A limit of 100/300/100 means $100,000 per person and $300,000 per accident for bodily injury, and $100,000 for property damage per accident. Apply the per-person limit to each injured person before the per-accident limit to the total.
Treating a rollover as comprehensive. Upset of the vehicle is collision even when the driver was avoiding an animal. Contact with a bird or animal is an other-than-collision loss, settled under comprehensive.
Counting damages as supplementary payments. Bail bond costs and interest on the judgment are supplementary payments. Pain and suffering, medical expenses and the insured's own lost wages are not.
Forgetting that permission makes an insured. A permissive user is an insured whether or not a household member or listed driver. An excluded driver is not.
Expecting an endorsement to add a separate limit. Extended non-owned coverage for a named individual extends who is covered; the claim is still subject to the policy's own limits.
Your Next Step
If these questions exposed a gap, listen to the matching lesson in the Pennsylvania Property & Casualty course preview, then come back and rework the questions you missed. For more topics, see all of our free Pennsylvania Property & Casualty practice questions.
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