Final answer:
Auto Physical Damage coverage in a Personal Auto Policy pays out when the car is damaged, stolen, or causes damage to others.
Step-by-step explanation:
In a Personal Auto Policy, the statement concerning auto Physical Damage coverage is that it pays out when the car is damaged, stolen, or causes damage to others. This coverage is designed to protect the insured against the cost of repairing or replacing their own vehicle in case of an accident or theft. It does not cover medical expenses, death of the policyholder, or damage to a dwelling.
For example, if you are involved in a car accident and your vehicle sustains damage, auto Physical Damage coverage can help cover the cost of repairs or replacement.
It is important to note that auto Physical Damage coverage is optional and may not be included in every Personal Auto Policy. It is a separate coverage that can be added to the policy for an additional premium.