Describe the "excess coverage" in a Personal Auto Policy.

Excess coverage in a Personal Auto Policy refers to the additional limits provided that go beyond the primary coverage limits. This type of coverage is activated after the primary insurance coverage has been exhausted. It serves as a safety net, offering further financial protection against claims that exceed the amount covered by the primary policy.

For instance, if an accident results in damages or liability that surpass the limits of the primary auto insurance policy, the excess coverage will take effect, covering the additional costs up to its specified limit. This is particularly important for those who may have significant assets to protect, as it helps to ensure they are not left financially vulnerable in the event of a catastrophic event.

The other options do not accurately reflect the nature of excess coverage. It is not limited to older vehicles or vehicles under lease, nor does it guarantee full value for damages. Instead, it functions as additional protective coverage that supplements the primary policy's limits.