Theresa is the named insured under a personal auto policy that provides coverage for bodily injury, property damage liability, medical payments, and uninsured motorists coverage.

Theresa's husband borrowed a neighbor's car and ran over a friend's racing bicycle. The friend is demanding that Theresa's husband pay for the damaged bicycle.

Will Theresa's personal auto policy cover the loss?

Group of answer choices

no, since the neighbor's car is not a covered auto under Theresa's personal auto policy

yes, but the liability insurance on the neighbor's car will pay on a primary basis

no, since Theresa's husband is not a covered person under her personal auto policy

yes, Theresa's personal auto policy will pay on a primary basis, and the neighbor's auto policy will pay on an excess basis, if necessary