If an individual causes property damage while valet driving, will her liability be covered by her auto policy?

In the scenario where an individual causes property damage while valet driving, the correct understanding revolves around the specific coverage provisions of her auto policy. Typically, standard personal auto insurance policies do not provide coverage for liability incurred while driving a vehicle as a valet. This is primarily because valet parking entails a business activity, and most personal auto policies exclude business-related operations from coverage.

Coverage B generally refers to liability coverage for property damage and bodily injury. However, since the valet service is not considered personal use of the vehicle and leans towards a commercial activity, the auto policy will not extend liability coverage in this situation. Therefore, the damage caused while engaging in valet driving is excluded under standard personal auto policies, affirming that liability is not covered in this context.

Understanding the nuances of personal versus commercial use in auto insurance is crucial, as many drivers mistakenly assume their personal policies will apply in scenarios where they are engaging in business or paid activities.