Registered Insurance Brokers of Ontario (RIBO) Practice Exam

True or False: No coverage applies to temporary substitute vehicles.

1. True

2. False

3. Depends on the insurance plan

4. Only for specific circumstances

The correct answer is: False

The assertion that no coverage applies to temporary substitute vehicles is false. Temporary substitute vehicles are often included in coverage under personal automobile insurance policies. These vehicles can be covered under certain conditions described in the policy, allowing policyholders to drive a different vehicle temporarily, often while their primary vehicle is being repaired or is unavailable. Coverage for temporary substitute vehicles typically hinges on the conditions outlined in the standard auto insurance policy, which may offer automatic or extended protection. This means that the driver will likely maintain their insurance benefits even when using a vehicle that is not specifically listed on their policy, acknowledging the need for flexibility in vehicle usage. While there can be specific terms and conditions that apply, such as the duration of use or type of vehicle, it generally means that coverage is available rather than completely absent. Therefore, the assertion regarding no coverage being applicable is incorrect.