Florida Insurance Licensing Practice Exam

An insured and his spouse have two cars insured under a Personal Auto Policy. What coverage is available for a car that the wife borrows from a friend to use for the weekend?

1. There is no automatic coverage

2. The borrowed car would have the same coverage as the least covered vehicle

3. The borrowed car would have the broadest coverage available on the policy

4. Coverage would extend to the borrowed car if notified her insurer prior to use

The correct answer is: The borrowed car would have the broadest coverage available on the policy

The borrowed car would have the broadest coverage available on the policy because in a Personal Auto Policy, coverage extends to additional cars that are not owned by the insured, but are typically hired or borrowed with the owner's permission. This means that if the borrowed car has a lower level of coverage than the insured's two cars, the coverage will be expanded to match the highest level of coverage available under the policy, providing the most protection for the borrowed car. The other options are incorrect because A states that there is no automatic coverage, which is not true in this situation; B refers to the least covered vehicle, which is not relevant when determining coverage for a borrowed car; and D suggests that coverage would only extend if the insurer is notified prior to use, which is not necessary as long as the car is borrowed with the owner's permission.