Final answer:
The insured typically has 14 days to request collision coverage on a newly acquired vehicle that will replace a covered auto with only liability insurance. This period allows for the necessary adjustments to the insurance policy.
Step-by-step explanation:
The question relates to an insurance policy adjustment period when a new vehicle is acquired to replace an old one that was only covered by liability insurance. It is essential to understand how auto insurance works to appreciate the importance of adding collision coverage to a new vehicle promptly. When purchasing or leasing a new or used car, considering insurance rates is crucial for financial planning. Various factors, including the car's safety rating, driving history, and age, affect the insurance premium.
However, when it comes to adding collision coverage to a newly acquired auto, there is often a grace period given by insurance companies. This grace period allows the insured to align their coverages without immediate pressures. To directly answer the student's question: when a newly acquired auto is to replace a covered auto that has liability coverage only, the insured typically has 14 days (D. 14 days) to request collision coverage on the new auto. This period is designed to give drivers a reasonable amount of time to contact their insurer and adjust their policy to include the new vehicle.
In the context of the simplified example provided, if any of these drivers had to replace their vehicle and wanted to add collision coverage to their insurance policy, they would need to act within this 14-day window. Doing so ensures that they are adequately protected against potential damages that their new vehicle might incur, just as the insurance model is designed to protect them against out-of-pocket expenses from accidents as depicted in the example.