Under a garage policy, which statement correctly describes coverage for drivers using Starr-owned, hired, or borrowed autos?

Under a garage policy, which statement correctly describes coverage for drivers using Starr-owned, hired, or borrowed autos?

• A. It covers any vehicle used, including non-owned
• B. It covers only Starr-owned autos
• C. It covers Starr-owned, hired, or borrowed autos when the driver is using them for business purposes
• D. It covers non-owned vehicles even if not borrowed

Answer: (C)

Garage policy auto coverage applies to vehicles that are used in the insured’s business and are owned by the insured or hired or borrowed by the insured, but only when the driver is using them for business purposes. This means a Starr-owned, hired, or borrowed vehicle used in the course of Starr’s business is covered for liability, while personal-use driving or using vehicles that aren’t owned, hired, or borrowed isn’t covered. The correct statement matches this scope by clarifying that coverage exists for Starr-owned, hired, or borrowed autos specifically when the driver is using them for business purposes.

Garage policy auto coverage applies to vehicles that are used in the insured’s business and are owned by the insured or hired or borrowed by the insured, but only when the driver is using them for business purposes. This means a Starr-owned, hired, or borrowed vehicle used in the course of Starr’s business is covered for liability, while personal-use driving or using vehicles that aren’t owned, hired, or borrowed isn’t covered. The correct statement matches this scope by clarifying that coverage exists for Starr-owned, hired, or borrowed autos specifically when the driver is using them for business purposes.