An insured drives her covered Honda to a dealer to test-drive a new SUV. While on the test drive she damages the SUV in a collision. Under the Personal Auto Policy, the SUV is best treated as:
Explanation
Part D defines 'your covered auto' to include not only autos listed on the declarations but also a 'newly acquired auto' during a defined notification period, a 'temporary substitute auto' used because the listed auto is out of service, and certain non-owned autos used with permission. Most policies provide for test-drive/dealer-supplied vehicles to be covered with the broadest coverage on any auto listed on the declarations. The dealer's coverage often is primary, but the PAP can respond as needed.
Law Reference: ISO PAP, Part D — 'Your Covered Auto' definitionThis topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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Related questions on this topic
- Under Part A of the Personal Auto Policy, who qualifies as an 'insured' for liability purposes?
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