What is the distinction between "share-the-expense car pools" and "for-hire" situations?

The distinction between "share-the-expense car pools" and "for-hire" situations primarily revolves around the nature of the arrangement and how insurance policies define coverage for these activities. In a "share-the-expense car pool," participants share the costs associated with transportation—typically, passengers contribute towards gas or other expenses without the expectation of profit. This type of arrangement is often seen as a social activity rather than a commercial one, which aligns with the intent of personal auto insurance policies.

In contrast, "for-hire" situations involve a driver who is compensated for providing transportation services, such as a taxi or rideshare service. Because these arrangements are profit-driven, they fall outside the scope of what personal auto insurance typically covers. Personal policies usually exclude coverage for vehicles used in a business context or for any commercial purposes.

Therefore, the assertion that "share-the-expense car pools" are covered under personal auto policies highlights their non-commercial nature, which fits the criteria for coverage, while "for-hire" situations do not qualify in the same way, thus are not covered under standard personal auto policies. This is why option C is the appropriate answer in this context.