What happens if you get into an accident when test-driving a car?
by admin on Friday, July 30th, 2010 | 3 Comments
In my experience dealerships don’t have you sign a liability waiver. If you are test driving a car and get into an accident, are you held responsible or is this covered by their insurance?
Your insurance takes the bite first, raising your insurance rates. Dealership has a policy that is second in line to cover what yours does not cover but the liability is yours!
Yep, the dealer has an umbrella policy. If for some reason the damage exceeds that policy, then yours will kick in. Just like if you were driving a friend’s car and you were both insured. Most insurance policies cover you and your passengers in any vehicle as long as you have permission to drive it, but insurance still follows the vehicle. This includes rentals, so that extra insurance they want you to buy is useless since yours will back you up.
It’s covered by the dealer’s insurance.
From personal experience as a car salesman in a prior life, most folks who have an accident while test driving a car will buy it out of guilt.