Which of the following statements is true about personal auto policies concerning carpooling?

When it comes to personal auto policies and carpooling scenarios, the correct statement is that for-hire situations are completely excluded. This clarification is important because personal auto policies are designed primarily for personal use rather than for driving others for profit. In situations where individuals receive payment for transporting passengers, such as rideshare services (Uber, Lyft, etc.), the personal auto insurance coverage does not apply.

For-hire driving typically requires a different type of insurance policy, such as a commercial auto policy or specific rideshare insurance, to cover the risks associated with carrying passengers in exchange for payment. Most personal auto policies explicitly exclude any coverage for driving for hire, which is why this statement is accurate. Understanding this distinction helps consumers recognize the limitations of their personal auto insurance when engaging in carpooling arrangements that involve compensation.

In contrast, carpooling arrangements that are casual and do not involve the exchange of money might have some coverage depending on the specifics of the insurance policy, but this would not apply in the case of for-hire situations.