What is the limit of liability for a loss to a borrowed or rented trailer under a personal auto policy (PAP)?

The limit of liability for a loss to a borrowed or rented trailer under a personal auto policy (PAP) is set at $1,500. This coverage limit is specified in the personal auto policy to provide financial protection for policyholders when they borrow or rent a trailer, reflecting the insurer’s assessment of risk and potential loss.

This coverage is important because it allows drivers to use trailers for personal needs without exposing themselves to significant financial liabilities if an accident or theft occurs. Knowing this limit helps policyholders understand the extent of their coverage when using trailers not owned by them. In this context, the answer indicating $1,500 as the limit aligns with standard coverage provisions in personal auto policies.