Question

With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto?

1) a vehicle leased to the name insured for 12 months by a leasing company
2) A vehicle that is titled and insured by the named insured but is driven principally by the named insured's son who is a resident of the household
3) A vehicle rented for the insured's personal use
4) A vehicle that is titled to another person, but is being used with permission by an insured

Answer 1

A nonowned auto under a personal auto policy typically means a vehicle not titled to the insured. The rented vehicle for personal use mentioned in option 3 is the correct classification of a nonowned auto because it is not owned or titled to the insured.

Step-by-step explanation:

In a personal auto policy, a nonowned auto generally refers to a vehicle that is not titled or registered to the named insured. Considering the options provided, the vehicle that could be classified as a nonowned auto is option 3) A vehicle rented for the insured's personal use. This is because the rented vehicle is neither owned nor leased under a long-term agreement (typically more than a few months) by the insured, which fits the common definition of a nonowned auto in the context of insurance policies.

The other options do not apply as nonowned autos because:

1. A vehicle leased to the named insured for 12 months is typically considered an owned auto under the policy since it is under a long-term lease agreement.
2. A vehicle that is titled and insured by the named insured but driven principally by the son, a resident of the household, is still an owned auto since the title and insurance are in the named insured's name.
3. A vehicle that is titled to another person but is used with permission by an insured is generally covered under the 'permissive use' provision but is not considered nonowned if it's used regularly.