Who Holds Insurance Protection During a Test Drive?

Test-driving a vehicle is expected during the car-buying process. It’s rare that a buyer would purchase a car without first driving it. But who is responsible if someone test-driving a vehicle is involved in an accident?

Rarely does a car shopper consider this risk when test driving vehicles. It is a good question, and one that should be considered before getting behind the wheel of an unfamiliar car.

Even though accidents on test drives aren’t in the news doesn’t mean it doesn’t happen. After all, the person driving is driving an unfamiliar car with unfamiliar braking responses and things like light switches, shifting gear, and turn signal indicator in unfamiliar places. It would seem that an accident during test-driving might be more frequent than imagined.

In any case, it is important that someone shopping for a car start off by calling their insurance company and check out what protection is already included and how one could better protect themselves in such a case. No one wants to think they will be involved in an accident, at-fault, no less when test driving, but one should be prepared at all times.

Test Driving Cars Through a Dealership

When car shopping with a car dealership, the vehicles should be covered under a fleet coverage protection with the business insurance coverage of a dealership. If you go to a dealership to test drive and the dealer is asking for insurance information, make sure you specifically ask if they have coverage.

Any dealership that places full responsibility on you should be considered carefully before test-driving. After all, times are tough for everyone, but a dealer who can’t afford fleet insurance might be the same dealer who

will mark up car prices.

However, even though a dealer might have fleet insurance on the vehicles to cover everyone who drives with permission, they still may have you sign a waiver in case you are at fault for an accident.

Before signing and driving, read the information very carefully. If it

is going to require you to pay for damages or hold you liable in any way, call your own insurance company for increasing your liability and ensuring you have physical damage protection on your policy for a replacement car.

Nothing would be worse than test-driving for a car to replace one that is falling apart only to have to pay for a car for which you never take ownership.

Test Driving a Private Owner’s Car

Suppose a car shopper finds a listing in the newspaper, Craigslist, eBay Motors, or other public notice methods, how does coverage work then?

If the car owner has the car under an insurance policy, the coverage will transfer to any permissive use driver, just like if you lent your vehicle out to a neighbor or friend. However, in the same way, the coverage limits will apply and you still may be liable for paying back the insurance company or you may have additional expenses that aren’t covered by the policy.

This could be true of car owners who carry minimum-only coverage. If the car owner has a $25,000 injury policy and you cause an accident that results in $50,000 worth of injury, you will be on the hook for anything the car owner’s policy doesn’t cover. Additionally, it is possible the car insurance company that covers you will turn around and sue you or your insurance company for reimbursement.

It is just the best possible policy to ensure you have high liability limits and physical damage protection on your own insurance policy before going out and test-driving cars. That way there will be plenty

of coverage to lean on when the unthinkable occurs.

Image: Flickr.