In a personal auto policy, what does the term "your covered auto" typically refer to?

The term "your covered auto" in a personal auto policy refers to vehicles owned, borrowed, or leased by the named insured. This broad definition ensures that the policy provides coverage not only for vehicles that the insured owns outright but also for those that they may not own but have permission to use. It emphasizes the policyholder’s financial responsibility for various vehicles in their everyday life, whether they are rented, leased, or borrowed.

This inclusivity is important as it aligns with typical usage patterns of policyholders, who may not own every vehicle they drive but still need liability and comprehensive protection while operating those vehicles. It reflects a practical understanding of how individuals utilize vehicles in their daily activities. Such coverage helps avoid gaps in protection that could arise if only owned vehicles were considered covered.

The other options do not encompass the full range of vehicles covered under the policy. Limiting coverage only to vehicles registered in the policyholder's name would exclude those essential borrowing and leasing situations. Similarly, restricting coverage to business-related rentals would fail to consider personal use, which is a significant aspect of auto insurance. Lastly, stating that only vehicles with comprehensive and collision coverage qualify would ignore many scenarios where liability coverage is just as critical. Thus, the correct answer highlights the comprehensive nature of