Final answer:
When settling a claim, an insurance company can replace a vehicle with one of like kind and quality, meaning the replacement should be comparable in model, age, condition, and value to the original vehicle.
Step-by-step explanation:
The statement that in settling a claim under a personal auto policy, the company may replace the car with one of like kind and like quality is True. When an auto insurance policy allows for the replacement of a vehicle, the insurer is expected to provide a car that is similar in model, age, condition, and value to the one that was lost or damaged. This means that the replacement vehicle should be comparable to what the insured had before the loss occurred. The statement "In settling a claim under a personal auto policy, the company may replace the car with one of like kind and like quality." is true.
When settling a claim under a personal auto policy, insurance companies will often replace a damaged car with a similar one of equal value and condition. This means that if your car is damaged beyond repair, the insurance company will provide you with a replacement vehicle that is comparable in terms of make, model, and condition.