Personal Auto PolicyQuestion 408 of 531

An insured plans to drive her covered auto to a beach resort in another country for two weeks. The policy territory provision means she:

a.Is covered while the car stays registered here
b.Loses coverage for the rest of the term
c.Is covered because the trip starts at home
d.Needs separate coverage written in that country

Explanation

The policy territory is the United States of America, its territories and possessions, Puerto Rico and Canada, together with the period an auto is being transported between their ports. A trip beyond that falls outside the territory, so a policy written in the destination country is needed. Where the car is registered does not stretch the territory, and the trip does not void the rest of the term.

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