Regarding the personal auto policy, which vehicle qualifies as a nonowned auto?

Prepare for the Nevada Casualty Law Exam with engaging flashcards and multiple-choice questions. Each question provides helpful hints and explanations, ensuring you're ready for exam day!

A nonowned auto is defined as a vehicle that the insured does not own but operates with permission. In this context, a vehicle that is titled to another person and is used with their consent qualifies as a nonowned auto. This means that if the insured has been given permission by the titled owner to use the vehicle, it falls under this category.

The concept of nonowned autos is important within a personal auto policy because it provides coverage for vehicles that the insured does not personally own. This is especially relevant for occasions when individuals borrow cars or use vehicles that are not in their name, ensuring they remain covered while driving those vehicles.

The other options do not fit the definition of nonowned autos. An auto owned by the insured is not considered nonowned because it is directly owned by the insured, thus not fulfilling the criteria of being "nonowned." A rented vehicle, while technically not owned by the insured either, is covered differently under most personal auto policies and typically falls under a specific category dedicated to rental vehicles, not as nonowned. While borrowing from a friend typically fits the nonowned definition, the emphasis on permission provided in the context of the query points more specifically to the case where the vehicle is owned by another individual but used with their knowledge

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