Q: I have several questions regarding the personal auto policy and injury to a pet:

• Is a pet considered property?
• If so, is their value limited to their market value—in other words, replacement cost?
• If medical bills exceed the value of the pet, would the insurance company pay the cost of the medical bills or the value of the pet? 
• If a pet is not considered property, does bodily injury liability coverage apply?

Response 1: Pets are considered property, so bodily injury wouldn’t apply—bodily injury applies only to people. A pet’s value would be equal to the market value or the cost to "repair or replace," whichever is lower. If the medical bills exceed the value of the animal, the company would probably pay the market value.

Response 2: Under the ISO PAP, medical payments only apply to "insureds," not animals. Liability coverage, meanwhile, applies to "bodily injury" or “property damage" for which any "insured" becomes legally responsible because of an auto accident.

The degree of legal liability a tortfeasor has for the injury or death of an animal is a matter of statute or jurisprudence in each state. The PAP does not address the issue further.

Response 3: Regarding coverage for injury to someone else’s pet, the question hinges on your state’s case law. Currently, the ISO PAP doesn’t cover your own pet in your vehicle. However, in an effort to obtain market share, some carriers offer limited coverage for your pet in your car. 

Response 4: Courts have consistently maintained that animals are property, which means bodily injury coverage would not apply—only property damage.

Response 5: There is no exclusion for injury or damage to animals, so the at-fault driver’s liability coverage should apply. Medical payments—Coverage B—would be in effect only for "you," "family members" or any other "person" while occupying the car. The definition of a "person" does not extend to a pet, but there should be liability coverage if the insured is "legally responsible."

My guess is that the insurer would use replacement value, but I cannot think of any possible way to determine the value of a pet to a family.

Response 6: Assuming you’re asking about a pet owned by a third party, in most cases, pets are considered property. That means bodily injury coverage wouldn’t apply—only property damage coverage. First-party pets would be a different matter.

How to value a pet? I have no idea. I don't think animals have a like, kind and quality valuation. Is there an actual cash value for a 15-year-old dog? That might be a negotiated settlement.

Response 7: For more detail on this issue, check out an article from the Animal Legal & Historical Center.

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