Principles of Risk Management and Insurance, 13th Edition

Part F: General Provisions

This section contains a number of general provisions. Only two of them are discussed here.

Policy Period and Territory

The PAP provides coverage only in the United States, its territories or possessions, Puerto Rico, and ­Canada. The policy also provides coverage while a covered auto is being transported between the ports of the United States, Puerto Rico, or Canada. For example, if you rent a car while vacationing in England, ­Germany, or Mexico, you are not covered. Additional auto insurance must be purchased to be covered while driving in foreign countries. If you intend to drive in Mexico, you should first obtain liability insurance from a Mexican insurer. A motorist from the United States who has not purchased ...