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Howard bought a car yesterday for his youngest son to drive to school and his job. Under Howard's PAP, this car is considered a(n):

a) Additional insured vehicle
b) Named non-owner vehicle
c) Temporary substitute vehicle
d) Newly acquired vehicle

1 Answer

2 votes

Final answer:

Howard's car purchase for his son is considered a 'Newly acquired vehicle' under his Personal Auto Policy, which requires notification to the insurance company to maintain coverage. The option (D) is correct.

Step-by-step explanation:

When Howard bought a car for his youngest son to drive to school and his job, under Howard's Personal Auto Policy (PAP), this car is considered a Newly acquired vehicle. A newly acquired vehicle is newly purchased and therefore is added to the PAP.

Typically, there is a requirement to notify the insurance company within a specified period to ensure that the new vehicle remains covered under the existing auto policy. Therefore, option (D) is correct.

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