How is a hired auto defined in auto insurance?

A hired auto is correctly defined as an auto that the insured leases, hires, rents, or borrows. This definition is critical within the context of auto insurance, as it specifies the circumstances under which coverage applies for vehicles that are not owned by the insured but are being utilized for the insured's purposes.

In insurance terminology, "hired auto" encompasses vehicles temporarily acquired for use, and the coverage for these vehicles often differs from that of owned vehicles. This distinction is important for both the insured and the insurance provider, as it helps define responsibility and liability in cases of accidents or damages involving these vehicles.

Understanding this definition is crucial for ensuring that appropriate insurance coverage is in place when individuals or businesses use vehicles that they do not own, which may lead to potential liability issues if an accident occurs during the use of such vehicles.