Personal Auto PolicyQuestion 428 of 474
A driver who owns no vehicle but often rents and borrows cars should be sold:
a.A gap policy covering the borrowed car's value
b.A miscellaneous type vehicle endorsement instead
c.A named non-owner policy in that driver's name
d.A towing and labor endorsement for rental cars
Explanation
A named non-owner policy provides liability and related coverages to an individual with no owned auto, following that person into cars rented or borrowed. It schedules no vehicle, so it is not the same as an endorsement written for a motorcycle or motor home. Gap coverage answers a loan balance, which a driver who owns no car does not carry.
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Related questions on this topic
- The insurer pays a $6,000 collision claim and then pursues the at-fault driver for that money. This right is called:
- Two personal auto policies issued to the same named insured by the same insurer apply to one accident. The maximum payable is:
- Under the general provisions, the insured may not bring legal action against the insurer until:
- The towing and labor costs endorsement on a personal auto policy pays for:
- To bring a motorcycle or a motor home under a personal auto policy, the producer adds:
- A financed car is totaled. The auto policy pays its actual cash value of $18,500 while $22,000 is still owed on the loan. Gap coverage would pay:
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