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Are You Covered Test Driving a Car?

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Be extra careful whenever you test drive a new or used car. If you’re not working with a reputable car dealer, driving that car could be costly if you have a car crash.

Your automobile insurance policy covers many things, but it doesn’t cover you when you take a test drive. The dealer has a policy for that; it’s called a “garage liability” policy. Your insurance doesn’t provide coverage on a test drive because you don’t own the vehicle. It make perfect sense not to have insurance for something you don’t own, right?

Under the exclusions section of an auto insurance contract, there is language saying losses are excluded:

To any “non-owned auto” being maintained or used by any person while employed or otherwise engaged in the “business” of selling, repairing, servicing, storing or parking vehicles designated for use on public roads. This includes road testing and delivery.

Last week, a story surfaced about a guy who hit a school bus while on a test drive. He admitted fault, then learned his insurance would not cover the damages. Although the dealer had insurance, they say they are going to sue the driver to get their deductible repaid. Not sure how that will play out, but it sure puts a damper on that guy’s car shopping!

Do you know how your insurance works when you rent a car? Read up here.

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Trevor Hickman Insurance in Lake City

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