What is the main limitation of a Personal Auto Policy regarding liability coverage?

The primary limitation of a Personal Auto Policy in relation to liability coverage is that it does not cover bodily injury for the policyholder while driving their own vehicle. Instead, the liability coverage is designed to protect the insured from claims made by other parties for bodily injury and property damage resulting from an accident where the insured is at fault.

While the policy does indeed cover both property damage and bodily injury to others, when considering the specific limitations regarding the insured party, the correct understanding would indicate that liability coverage does not extend to bodily injury claims made by the insured. Instead, coverage is focused on protecting against claims from third parties. Thus, the answer accurately reflects the limitations of the policy in terms of who is covered when an accident occurs.

This contrast is often misunderstood, as many may think the coverage includes bodily injury claims for the insured themselves, which is not the case under standard Personal Auto Policies.