Which of the following statements is true regarding the property damage coverage limitations under a PAP?

The statement regarding the exclusion of coverage for vehicles not owned by the insured is accurate because the Personal Auto Policy (PAP) typically covers damages to vehicles that the insured owns or operates with permission. This coverage is designed to protect the insured's own interests, which means that if an insured driver causes damage to a vehicle they do not own, the PAP will not provide coverage for that loss. This limitation is an essential element of the policy structure, preventing coverage from extending to vehicles that the insured does not have a legal or financial interest in.

In contrast, the other statements are not true regarding the limitations of property damage coverage under a PAP. The policy does not offer full coverage for all damages; there are specific exclusions and limitations. It is not limited to commercial vehicles, as the PAP is primarily designed for personal use. Lastly, the coverage is not restricted to out-of-state travel, as it generally applies whenever the vehicle is being operated, regardless of location, as long as the terms of the policy are met.