When a replacement auto is acquired during the policy period, what coverage will apply to it automatically under a personal auto policy?

When a replacement auto is acquired during the policy period, the automatic coverage that applies to it under a personal auto policy is the same coverage that was applicable to the vehicle being replaced. This ensures that there is a seamless transition of coverage and protects the insured from a gap in protection during the time the policyholder acquires a new vehicle.

This principle is designed to provide convenience and continuous coverage for policyholders who are replacing a car, recognizing that they may not always have the time to modify their policy immediately after acquiring a new car. This automatic coverage generally matches the coverage limits and types that were in place for the replaced vehicle, ensuring that the insured is adequately protected until they can formally update their policy details.

In contrast, the other options suggest various limitations or conditions that do not align with the standard practice of seamless coverage transfer for replacement vehicles. For instance, having no coverage until added by endorsement would leave the policyholder vulnerable to risk if an accident occurred shortly after acquiring the new vehicle, which is not the intent of personal auto policy design.