How is coverage handled for vehicles owned by family members available for the insured's regular use?

The correct answer highlights that the Personal Automobile Policy (PAP) coverage is typically considered excess over other collectible insurance when it comes to vehicles owned by family members that are available for the insured's regular use. This means that if an insured individual is involved in an accident while driving a family member's vehicle, the first source of coverage would be the insurance policy associated with the vehicle itself. The PAP would then kick in to cover any remaining liability after the family member's insurance has been applied.

This framework is important for ensuring that multiple insurance policies can coordinate effectively, providing a layer of protection without leading to duplication of coverage. Insurers often structure policies this way to avoid the complexities of determining fault and liability across different insurance contracts.

The other options do not accurately represent standard practices regarding vehicle coverage. For instance, while the PAP being primary would imply it is the first line of defense for any claims, that is generally not the case for vehicles owned by family members. Likewise, stating that the PAP does not provide any coverage overlooks the essential role it plays as excess coverage. Finally, suggesting that coverage is determined solely by state law neglects the specific terms and conditions of the insurance policy in question, which govern coverage details.