There's a difference between answers for the exam and the way the real world operates. For the purposes of the exam, answer D is correct. If all coverages will remain the same (the unstated assumption in the question), then under the policy provisions of what constitutes a covered vehicle, your new vehicle is covered. For purposes of the exam, you always choose the best of the choices given - if the "real world" response isn't there, then it's not asking you a real world scenario, just a pure insurance question. You are covered when you drive replacement autos under your PAP. In real life, I'm not independently wealthy, I finance my vehicles, so my lender wants to know my binder is in place before I can sign the paperwork on that "replacement vehicle." My insurance agent knows when I'm even thinking about buying a new car. But that's not what this question is asking, it's asking about policy provisions and if one knows what constitutes a covered auto and how coverage extends when an auto is replaced, keeping all things the same except the car itself.