Is the loaned vehicle provided to Nancy while her car is being repaired considered a covered auto under her personal auto policy?

The loaned vehicle provided to Nancy while her car is being repaired is considered a covered auto under her personal auto policy as a temporary substitute auto. The personal auto policy typically extends coverage to vehicles that the insured does not own but is using in place of their own car, particularly when the owned vehicle is out of service for reasons like repairs or maintenance.

In this case, since Nancy is using a loaned vehicle while her car is being repaired, the loaned car qualifies as a temporary substitute and thus falls under the coverage provided by her policy. The reasoning is based on the understanding that the personal auto policy is designed to offer continuity of coverage even when the insured vehicle is not available, ensuring that the policyholder can drive a different vehicle without losing protection.

The other options describe scenarios that do not fit the situation accurately. Non-owned vehicles like the loaned car do not usually qualify under the exclusions mentioned. Additionally, considering it a hired auto misrepresents the nature of the arrangement, as it is not rented or leased but borrowed temporarily. Lastly, while "drive other cars" coverage can extend protection under certain conditions, it is not necessary in this scenario since the vehicle is a designated temporary substitute for her vehicle under the existing policy terms.