State Farm Auto Insurance Practice Test

Which type of vehicle is covered under the auto insurance policy if it temporarily replaces a customer's vehicle?

1. Non-owned car

2. Temporary substitute car

3. Any rental car

4. Newly acquired car

The correct answer is: Temporary substitute car

A temporary substitute car is explicitly covered under an auto insurance policy when it is used to temporarily replace a customer's vehicle that is inoperable due to events like repair or breakdown. This coverage ensures that the policyholder is protected while their primary vehicle is unavailable, maintaining continuous coverage and peace of mind. This term typically refers to a vehicle borrowed from a friend or family member or one that is being rented while the insured's vehicle is being serviced. Such coverage is important as it keeps the customer protected against potential liabilities or damages while using a different vehicle temporarily. Other vehicle types, such as a non-owned car, may not provide the same level of coverage, as they refer specifically to vehicles owned by someone else for which the insured does not have ownership rights. The term newly acquired car refers to a vehicle that the insured has recently purchased, and that comes with its own set of specific coverage rules. Similarly, any rental car may not automatically fall under the same provisions without specific endorsements in place. Therefore, the use of the term "temporary substitute car" accurately captures the essence of the coverage provided in this scenario.