What is a 'hired' auto?

• A. A vehicle owned by the named insured
• B. A vehicle rented to use in business
• C. A vehicle borrowed by a relative for personal use
• D. A vehicle used for testing new models

Answer: (B)

In auto insurance, a hired auto is any vehicle you rent, lease, hire, or borrow for business use. The emphasis is on obtaining the vehicle for business purposes, not ownership.

A vehicle rented to use in business matches this definition exactly. It’s something your business temporarily takes control of to perform its operations, so the policy’s hired auto coverage applies to liability arising from its use.

The other scenarios don’t fit as neatly. A vehicle owned by the named insured is an owned auto, not hired. A relative borrowing a vehicle for personal use isn’t a business-hired vehicle, so it wouldn’t typically fall under hired auto. A vehicle used for testing new models isn’t described as rented or borrowed for business use in the sense captured by hired auto coverage.