What does Neal's personal auto policy state regarding his passengers' medical expenses after the accident?

The correct answer conveys that Neal's personal auto policy does not cover passengers' medical expenses due to the specific exclusion regarding the use of his vehicle as a public conveyance or livery service. Personal auto policies are typically designed for private use of the vehicle and expressly exclude coverage when the vehicle is used for commercial purposes or transport of passengers for hire. This means if Neal were using his vehicle to transport passengers for a fee or in a manner that serves as a business venture, any medical expenses incurred due to an accident would not be covered under his personal auto insurance.

The other options relate to scenarios where liability or fault determines coverage. However, a personal auto policy generally prioritizes exclusions for types of use, reinforcing that if the vehicle was being used as a public conveyance, coverage for passengers’ medical expenses would not apply. This emphasizes the importance of understanding the specific terms set forth in insurance policies, especially regarding the use of the vehicle.