Personal Automobile Policy
Personal auto policy
The ISO personal auto policy has six parts: A liability, B medical payments, C uninsured/underinsured motorists, D coverage for damage to your auto, E duties after an accident or loss, and F general provisions. Your covered auto means the vehicle shown in the declarations, a newly acquired auto, a trailer you own, and a temporary substitute. Non-owned autos are covered for liability when used with permission but generally not for physical damage.
Newly acquired autos: if the auto replaces one on the policy, coverage begins immediately; if it is an addition, liability applies for 14 days (or the remaining policy period if shorter) and physical damage applies for 14 days only if the policy already carries physical damage coverage. Report the acquisition promptly to avoid a gap.
Key exclusions: intentional acts, racing, use as a public or livery conveyance, carrying persons or property for a fee, business use such as delivery, and regular use of a non-owned auto. Medical payments pays reasonable medical expenses for the insured and passengers regardless of fault, subject to limits and a time window. UM/UIM responds when the at-fault driver has no or insufficient insurance; Iowa requires insurers to offer UM, and the insured may reject it in writing. Iowa minimum liability limits are 20/40/15, and higher limits are strongly advised. Physical damage (collision and other than collision) carries a deductible and is usually settled at actual cash value, with loan/lease gap optional.
Traps: assuming delivery or rideshare use is covered; forgetting that a newly acquired business vehicle may not qualify; confusing medical payments with PIP, since Iowa is a tort state and does not mandate PIP.
Rule of thumb: liability follows the vehicle; medical payments and UM follow the person, within the definitions.
Worked example: An insured with collision on an existing car buys an additional car and does not report it. Collision still applies to the new car for 14 days; after that, physical damage coverage lapses.