Auto InsuranceQuestion 26 of 215
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:
a.A 'temporary substitute auto' or 'newly acquired auto' analog that is typically covered with the broadest coverage on the existing PAP
b.Automatically excluded because it is not listed on the declarations
c.Covered only if the dealer's policy fails to respond
d.Covered only under Part A liability, never Part D physical damage
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' definitionPractice all 215 questions free — no signup required.
Related questions on this topic
- Under Part A of the Personal Auto Policy, who qualifies as an 'insured' for liability purposes?
- Which of the following losses is specifically EXCLUDED under Part A Liability of the Personal Auto Policy?
- California Underinsured Motorist (UIM) coverage applies when:
- Following a covered collision repair, a California insured argues that her car is now worth less on resale than before the accident because of its accident history. With respect to first-party diminished value (the loss of resale value) claimed against the insured's own physical damage carrier, California generally:
- California considers a vehicle to be a 'total loss salvage vehicle' for title-branding purposes when:
- Under Part A of the Personal Auto Policy, the term 'bodily injury' includes which of the following damages a plaintiff may recover?
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