Does Keith's activity of providing rides to co-workers create a public or livery conveyance situation that affects liability coverage under his Personal Auto Policy?

The correct answer is based on the concept of a share-the-expense carpool, which typically falls within the personal use provisions of a Personal Auto Policy (PAP). In a share-the-expense carpool, participants contribute to the cost of fuel or other expenses associated with driving, but this arrangement does not constitute a commercial use of the vehicle.

Under personal auto insurance policies, as long as the driver is not receiving compensation beyond the actual expenses shared, this activity is generally considered personal in nature. Therefore, the liability coverage associated with the Personal Auto Policy would typically remain intact, as the activity does not transform into a commercial or livery conveyance situation that might trigger different liability coverage considerations.

The distinction is critical, as commercial use usually requires a different type of insurance policy due to the increased risk associated with transporting multiple passengers for a fee or business-related activity. The casual nature of friends sharing expenses does not meet the criteria for a public or livery conveyance, hence Keith's activity in this context would not affect his liability coverage under the PAP.