Rhode Island Insurance Adjuster Exam

Under the Personal Auto Policy, which of the following is NOT considered a covered auto?

1. Temporary substitute

2. Non-owned auto

3. Private passenger auto listed in the Declarations

4. An owned trailer

The correct answer is: Non-owned auto

The correct answer identifies a non-owned auto as something that is not considered a covered auto under the Personal Auto Policy. In the context of this insurance policy, a non-owned auto refers to a vehicle that the insured does not own, which may include vehicles borrowed from friends or family. However, these vehicles are typically covered under certain conditions, but they may not fall under the same blanket of coverage as vehicles that the insured owns or vehicles that hold a specific status in the policy. Covered autos generally include those listed in the Declarations page, which are vehicles owned by the insured, as well as additional vehicles that are classified as temporary substitutes (like a rental car while the insured's vehicle is being repaired), or owned trailers provided they are being used in accordance with the policy terms. Thus, the other options represent categories of coverage explicitly included in a typical Personal Auto Policy, while a non-owned auto may not have the comprehensive protection afforded to the insured's listed personal vehicles. Understanding the distinctions between these categories becomes essential for effective claims handling and ensuring that policyholders recognize the limitations of their coverage when dealing with non-owned vehicles.