North Carolina Adjuster Practice Exam

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Which type of insurance should Cindy purchase for liability coverage while driving her friend's car?

Comprehensive Coverage
Personal Auto Policy
Non-Owner Coverage
Rental Coverage

The correct answer is: Non-Owner Coverage

Cindy should consider purchasing Non-Owner Coverage for liability protection while driving her friend's car, as this type of insurance is specifically designed for individuals who drive vehicles that they do not own. Non-Owner Coverage provides liability protection in case of an accident, where the insured driver would be responsible for damages or injuries caused to others. In this scenario, since Cindy does not own the car but needs liability coverage while operating it, Non-Owner Coverage is the appropriate choice. It offers the necessary protection without requiring ownership of the vehicle. This option allows Cindy to comply with state laws regarding insurance and ensures that she is covered in the event of an accident while driving her friend's car. Comprehensive Coverage, on the other hand, protects against non-collision-related incidents (e.g., theft, vandalism), which is not what Cindy needs here. Personal Auto Policy typically covers personal vehicles owned by the insured, making it unsuitable for the situation since she does not own the car she is driving. Rental Coverage applies specifically to rented vehicles, rather than to a car owned by a friend, and therefore would not be applicable in this case.