55. Viktor, an automobile mechanic, resides with his spouse in British Columbia. Viktor owns a vehicle for personal use, and his spouse owns another vehicle. Both vehicles are insured under basic Autoplan. In which situation will Viktor's basic Autoplan extend to a non-owned vehicle he is driving?
Answer: B
Viktor's basic Autoplan extends to his spouse's vehicle when he borrows it to run errands.
Viktor's basic Autoplan will cover him when he borrows his spouse's vehicle for personal use, as it is considered a non-owned vehicle in this context.
A) Viktor rents a vehicle to operate for a taxi service.
This option is incorrect because basic Autoplan does not extend coverage to rented vehicles used for commercial purposes, such as operating a taxi service. The insurance policy is intended for personal use, and using a rented vehicle in this manner would typically require a different type of insurance.
B) Viktor borrows his spouse's vehicle to run errands.
This option is correct. Under British Columbia's basic Autoplan, coverage extends to non-owned vehicles operated by the insured, including vehicles owned by a spouse. Therefore, when Viktor borrows his spouse's vehicle for personal errands, he is covered under his Autoplan.
C) Viktor borrows a neighbour's vehicle, which he believes to be licensed.
This option is incorrect because borrowing a neighbour's vehicle does not provide the same automatic coverage as borrowing a vehicle owned by a spouse. While the vehicle may be licensed, the policy may not extend to vehicles not owned by an immediate family member unless specific conditions are met.
D) Viktor test-drives a customer's vehicle, which he believes to be licensed.
This option is also incorrect. Test-driving a customer's vehicle typically falls outside the scope of personal use insurance coverage. Although the vehicle may be licensed, the nature of the activity (test-driving for potential sale) is considered a commercial activity and requires proper insurance coverage.
Conclusion
Viktor's basic Autoplan provides coverage when he borrows his spouse's vehicle because it is classified under family use, which is explicitly covered by the policy. Other options fail to meet the criteria for coverage under the basic Autoplan due to their commercial nature or because they involve vehicles not owned by immediate family members. This illustrates the importance of understanding the specific terms of the insurance policy regarding coverage for non-owned vehicles.