{"id":1105,"date":"2016-06-03T16:54:29","date_gmt":"2016-06-03T16:54:29","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=1105"},"modified":"2025-01-17T23:38:49","modified_gmt":"2025-01-17T23:38:49","slug":"will-auto-insurance-cover-damage-cause-test-drive","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/will-auto-insurance-cover-damage-cause-test-drive\/","title":{"rendered":"Will My Auto Insurance Cover the Damage I Cause on a Test Drive?"},"content":{"rendered":"

For some reason, many of us believe our personal auto insurance<\/a> protects us if we damage a dealer\u2019s or private party\u2019s car while taking it for a short spin \u2013 no pun intended. Test driving a car before you buy it, no matter who owns it, is always a good idea. But, crashing it into another vehicle or stationary object is not. And, what follows can be confusing.<\/p>\n

“Non-owned cars” not covered<\/h2>\n

That\u2019s because \u2013 according to Donn Sharer, an Allstate agency owner in Millstone Township, New Jersey \u2013 most insurers don’t cover you for the use of “non-owned cars”, which include test-drive vehicles and loaners. Sharer explains \u2013 “In most states, insurance stays with the vehicle. That means your auto insurance typically only covers your car. When you drive someone else’s car, whether owned by a dealer or a private seller, the vehicle is covered by their insurance.”<\/p>\n

While dealers are required by law to insure their cars, should you cause extensive damage to one of their vehicles on a test drive, especially if the accident results from reckless or careless driving, you could get stuck with the tab. That\u2019s because the dealer’s insurer may seek reimbursement from you or your auto insurance company.<\/p>\n

Rules for privately-owned vehicles<\/h2>\n

The same rules apply when test driving a privately-owned vehicle. The vehicle owner’s auto insurance will typically cover the damage you cause to their car. You would be considered a “permissive driver” and generally wouldn’t be on the hook for repairs, according to Sharer.<\/p>\n

Before getting in and taking the vehicle for a test drive, verify the owner has an insurance policy on the vehicle. Be sure the owner has the vehicle fully insured or it could come back and haunt you \u2013 with a possible lawsuit to recover the costs of the damage you caused.<\/p>\n

Signing a waiver<\/h2>\n

According to Mark Rogers, manager and dealership management consultant for the National Automobile Dealers Association (NADA), “Some car dealers require you to sign a ‘loaner\/demo’ agreement before getting behind the wheel of one of their vehicles, particularly if you’ll be driving it for an extended time or without a salesperson present.”<\/p>\n

By signing the waiver, you could be accepting liability \u2013 which means, you agree to pay for any and all repairs that result from an accident you caused to the dealer\u2019s vehicle during a test drive. It may be well-worth your while to check with your insurer prior to test driving any vehicle so you have a good idea what your personal auto insurance covers and what it doesn\u2019t cover.<\/p>\n

Safety and Care<\/h2>\n

\u201cDrive safely\u201d is not a clich\u00e9. It should be a guiding motto when you\u2019re on the road \u2013 whether you\u2019re driving your own vehicle or someone else\u2019s. Treating a dealer\u2019s or private party\u2019s vehicle with extreme care can keep your insurance company and theirs from entering the picture due to an accident and making everyone unhappy. Don\u2019t take any unnecessary chances when driving a vehicle you\u2019re not totally familiar with and stay within the speed limit.<\/p>\n

Entirely up to you<\/h2>\n

In the end, what happens next is entirely up to you. You can buy yourself a great new or used car or you can wreck a vehicle that doesn\u2019t belong to you \u2013 and, wind up paying for it in other ways, including with higher rates if your car insurance<\/a> company gets word of what you did. So, keep that in mind next time you go for a test drive.<\/p>\n

Make sure you know what you’re paying for. The insurance experts at Freeway Insurance can guide you to the auto coverage and benefits you want at the lowest price possible. Get a free car insurance quote<\/a> online or give us a call at <\/em>(800) 777-5620<\/strong> <\/em>to get the best offer on the protections you want.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

For some reason, many of us believe our personal auto insurance protects us if we damage a dealer\u2019s or private party\u2019s car while taking it for a short spin \u2013 no pun intended. Test driving a car before you buy it, no matter who owns it, is always a good idea. But, crashing it into […]<\/p>\n","protected":false},"author":1002628,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[85],"importance":[],"type-content":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/1105"}],"collection":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/users\/1002628"}],"replies":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=1105"}],"version-history":[{"count":4,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/1105\/revisions"}],"predecessor-version":[{"id":3518,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/1105\/revisions\/3518"}],"wp:attachment":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=1105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=1105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=1105"},{"taxonomy":"importance","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/importance?post=1105"},{"taxonomy":"type-content","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/type-content?post=1105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}