Question 4

Mexico is not included in the coverage territory of a personal automobile policy.

In a personal automobile policy, the coverage territory encompasses the United States, Canada, and Puerto Rico, but explicitly excludes Mexico.

A) Puerto Rico

Puerto Rico is included in the coverage territory of a personal automobile policy. This territory is recognized as part of the United States for insurance purposes, confirming that coverage extends to this location.

B) the United States

The United States is a primary territory included in personal automobile policies. Coverage is typically comprehensive within all states and territories of the U.S., making this option correct.

C) Canada

Canada is also included within the coverage territory of a personal automobile policy. Policyholders can drive their vehicles in Canada and still be protected under their personal automobile insurance.

D) Mexico

Mexico is not included in the coverage territory of a personal automobile policy. Most policies explicitly state that coverage does not extend into Mexico, requiring separate insurance for driving in that country.

Conclusion

The correct answer is D because personal automobile policies specifically exclude Mexico from their coverage territory, while the other options—Puerto Rico, the United States, and Canada—are included. This distinction is crucial for policyholders to understand in order to ensure they have adequate coverage when traveling.