Do you need insurance to test drive a car at the dealership?
You are usually covered by the dealership's insurance when test driving a car, but this is not always the case. If you're in doubt, consider buying non-owner auto insurance or temporary auto insurance. Learn about your best options.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Jun 22, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 22, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Typically, dealerships usually insure their entire inventory to safeguard their investments from any eventualities
- You will likely be covered under the dealership’s fleet and liability insurance when test driving their vehicles
- You need a valid license to test drive a car and may need to sign a waiver, so read the fine print to ensure you are covered
Yes, you can usually test drive a car without insurance. But you must make sure that you have insurance under the dealership’s coverage. Otherwise, you are better off getting separate insurance to cover you while you test drive the vehicles you are checking out before buying.
Test driving a vehicle gives you an accurate picture of how you will feel inside it. For example, it’s one thing to think that a car is big enough based on its specs, and quite another to sit in it and push the seat backwards to make sure it accommodates you frame. Also, you get to determine what issues, if any, there are when driving a vehicle.
However, you should not test drive the car if you have no insurance coverage because you may end up in legal trouble.
Be sure to acquire and verify auto insurance coverage for yourself and the dealership before test driving a car. Enter your ZIP code above to find the best auto insurance rates today!
Do you need specific insurance to test drive cars?
You are better off getting additional insurance for test drives, especially when in doubt about the dealer’s insurance.
For example, you could get non-owner auto insurance. The insurance protects you from liability if you cause an accident while driving someone else’s car, such as a rental or borrowed vehicle. And technically, a dealership car you test drive is a borrowed vehicle.
Also, if you need insurance for a test drive and to drive a car home, you could purchase temporary insurance coverage. The insurance may last anywhere from one hour to six months, and is a very convenient way of getting insured while test driving a vehicle and driving it home. Buying this type of insurance enables you to have some grace period to think about the most appropriate auto insurance for the long term.
In addition, you can shop around for the cheapest car insurance that will cover you and the vehicle you end up driving off the dealership lot. If you are involved in an accident while test driving and you are at fault, that insurance may save you hundreds of thousands of dollars.
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Do dealers have insurance?
Dealerships must have insurance to safeguard their businesses and vehicles against most eventualities, such as damage from accidents, vandalism, and theft, among other things. Their insurance may be in the form of liability insurance and fleet insurance. In addition, they have workers’ compensation insurance that protects their workers.
Most car dealers will allow you to buy a car even without insurance. However, you will likely not drive home with your new purchase without that auto insurance until you get at least the basic coverage mandated by your state laws.
It is worth noting though that dealerships have insurance that is meant to protect their business. That means it will cater to their inventory and liability expenses associated with their clients and salespeople. But it will do so to the extent that it takes care of their financial interests.
If you test drive a vehicle and get into an accident, the situation may get tricky, depending on your role. Should the cost of damages exceed what the dealership insured themselves for, you may have to pay off the difference. So, it helps to ask yourself, “Does my insurance cover test drives?”
You Need Insurance Coverage to Test Drive a Car
In short, on a test drive, insurance is usually provided by the dealership, but you should make sure this is the case before getting on the road.
Apart from New Hampshire (NH), all other states mandate liability insurance before you can drive on their roads. So, always ensure you are insured whenever you drive, even in NH. Generally, dealerships will cover you through their auto insurance. But there may be some conditions you need to fulfill to enjoy their full coverage.
For example, the insurance may only cover you if you test drive a vehicle with a dealer’s salesperson. So, read the fine print and ensure that the dealer or your insurer covers you before driving off the lot to get a feel for the vehicle you’re considering. Should you be involved in an accident, you won’t deal with the financial consequences.
If you need to quickly purchase an auto insurance policy to test-drive a car at a dealership, get free quotes by entering your ZIP code to compare auto insurance coverage from top companies in your area.
Frequently Asked Questions
Do you need insurance to test drive a car at the dealership?
In most cases, you do not need to have your own insurance to test drive a car at the dealership. Dealerships typically have their own insurance policies that cover test drives. However, it’s essential to confirm this with the dealership beforehand as policies may vary.
Will the dealership’s insurance cover any damages that occur during the test drive?
Yes, the dealership’s insurance should generally cover any damages that occur during the test drive. However, it’s important to carefully read and understand the terms of the dealership’s insurance policy. Some policies may have certain limitations or deductibles that you should be aware of. If you have any concerns, ask the dealership for clarification before the test drive.
What should I do if I get into an accident during a test drive?
If you get into an accident during a test drive, follow these steps:
- Ensure safety: Check if anyone involved in the accident needs immediate medical attention and call for emergency services if necessary.
- Notify the dealership: Contact the dealership immediately to inform them about the accident. They will guide you on the next steps to take.
- Follow instructions: The dealership will provide guidance on reporting the accident, filing a claim, and coordinating any necessary repairs.
- Cooperate with the investigation: If law enforcement is involved, provide them with accurate and truthful information about the accident.
- Document the accident: Take photos of the accident scene and any damages to the vehicles involved. This documentation can be helpful during the claims process.
Am I liable for any damages if I cause an accident during a test drive?
In most cases, if you cause an accident during a test drive, you are not personally liable for the damages. The dealership’s insurance should cover the costs associated with the accident. However, it’s crucial to review the dealership’s insurance policy and any waivers or agreements you sign before the test drive to understand the terms and conditions.
Can I use my own insurance to test drive a car at the dealership?
Generally, your own personal auto insurance is not required for a test drive at the dealership. The dealership’s insurance policy should cover the test drive. However, if you have concerns or prefer to use your own insurance for additional peace of mind, discuss this with the dealership beforehand to determine if it’s possible.
Can I add a temporary rider to my insurance policy for a test drive?
Some insurance companies may offer temporary coverage or a rider that extends your existing insurance to cover test drives. Contact your insurance provider to inquire if such an option is available and if there are any additional costs or requirements involved.
What if I don’t have a valid driver’s license? Can I still test drive a car at the dealership?
In order to test drive a car at the dealership, a valid driver’s license is typically required. Dealerships need to ensure that the person test driving the vehicle is legally eligible to operate a motor vehicle. If you don’t have a valid driver’s license, it is unlikely that you will be able to test drive a car at the dealership.
Are there any age restrictions for test driving a car at the dealership?
Age restrictions for test driving a car at the dealership may vary. In most cases, you must be at least 18 years old with a valid driver’s license to test drive a car. However, some dealerships may have their own policies regarding age restrictions, such as requiring individuals to be 21 or older. It’s best to check with the specific dealership beforehand to confirm their age requirements for test drives.
Can I test drive multiple cars at the dealership?
It is often possible to test drive multiple cars at the dealership. However, the dealership may have certain limitations or guidelines in place. They may require you to provide specific information, such as your driver’s license and contact details, for each test drive. Additionally, scheduling multiple test drives may depend on the availability of the vehicles and the dealership’s policies.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.