North Carolina Adjuster Practice Exam

In a Personal Auto Policy, which vehicle would NOT be considered "Your Covered Auto"?

1. A car owned by the policyholder

2. A rental car

3. A trailer borrowed from a neighbor

4. A vehicle purchased recently

The correct answer is: A trailer borrowed from a neighbor

In a Personal Auto Policy, "Your Covered Auto" specifically refers to the vehicles that are owned or used by the policyholder and are primarily covered under the policy. A trailer borrowed from a neighbor is not considered "Your Covered Auto" because it does not meet the criteria of being owned by the policyholder or being a vehicle listed in the policy. Typically, covered vehicles under the policy include those that are owned, leased, or rentals that are temporarily used. The definition of "Your Covered Auto" includes vehicles specifically registered in the policyholder's name, a rental car while it is in use, and any newly acquired vehicles if reported to the insurer within a set time period. Hence, while a car owned by the policyholder, a rental car, and a recently purchased vehicle would all qualify as "Your Covered Auto," a borrowed trailer does not, as it is not owned by the policyholder and is outside the scope of coverage provided in a standard personal auto policy.