Who has an insurable interest in an automobile?

An insurable interest in an automobile refers to a person's financial stake in the vehicle, which is essential for an insurance policy to be valid. A person or entity with an insurable interest stands to suffer a financial loss if the automobile is damaged or destroyed.

The correct choice indicating that a person who has a lien on the automobile has an insurable interest is accurate because a lienholder has a legal right to the vehicle due to an outstanding debt. If the automobile is damaged or lost, the lienholder would be financially impacted, as they may not be able to recover the full amount owed. Thus, possessing a lien establishes a direct financial connection to the vehicle, making the lienholder eligible to insure it.

In contrast, while the owner of the automobile, the lessee, and those who have permission to drive the car may also have some level of insurable interest under certain circumstances, the unique and prioritized financial interest of a lienholder distinguishes their standing in this scenario. Therefore, the emphasis on the lienholder's insurable interest highlights the importance of financial stakes in the context of insuring property.