What does PAP stand for in insurance terminology?

In insurance terminology, PAP stands for Personal Auto Policy. This type of policy provides coverage for individuals against various risks associated with the ownership and operation of personal vehicles. The Personal Auto Policy typically includes liability coverage, personal injury protection, collision coverage, comprehensive coverage, and other optional coverages that can be added to fit the needs of the insured.

This choice is relevant in that the Personal Auto Policy is designed specifically for private individuals, contrasting with commercial auto policies which are tailored for vehicles used for business purposes. The comprehensive nature of a PAP allows policyholders to have a clear understanding of their coverage options and to ensure adequate protection against potential losses related to auto incidents. Other options like Property Auto Policy, Personal Asset Protection, and Premium Auto Policy do not accurately represent the common terminology used in the insurance industry related to personal vehicle coverage.