Which of the following policies combines property damage and liability insurance for motor vehicles?

• A. Comprehensive Auto Policy
• B. Motorcycle Insurance Policy
• C. Personal Auto Policy
• D. Commercial Auto Policy

Answer: (C)

The Personal Auto Policy is designed specifically for personal vehicles and provides a comprehensive coverage structure that includes both property damage and liability insurance. This policy typically covers losses and damages that arise from the use of a private automobile, addressing both damage to the vehicle itself and any liability for injuries or damages incurred to others in an accident involving the insured vehicle.

This policy includes several critical components such as bodily injury liability, property damage liability, personal injury protection, and collision and comprehensive coverage. As a result, it effectively addresses the dual need for protecting the insured's property while also providing financial protection against legal liability stemming from vehicle-related incidents.

In contrast, other policies such as the Comprehensive Auto Policy focus more on specific types of damage (like theft or natural disasters) and do not encompass the broader scope of liability coverage. Motorcycle Insurance Policies cater specifically to motorcycles and might not combine all the elements found within a personal vehicle policy. Commercial Auto Policies are tailored for vehicles used for business purposes, thus serving a different market compared to personal vehicle owners.