Test-driving a vehicle is a normal part of shopping for a new or used car in California. But what happens if you get into an accident while behind the wheel, especially if the vehicle technically belongs to the dealership?
Many drivers assume the dealership automatically covers everything, while others worry they’ll be on the hook for major costs. In reality, test-drive accidents involve a mix of California negligence laws, auto insurance policies, and dealership responsibilities.
Common Causes of Dealership Test-Drive Accidents
Many test-drive accidents occur due to factors such as the unfamiliarity with the vehicle, the sales staff distracting you about the car’s features, the traffic surrounding the dealership, and even reckless drivers on the road. While most cars generally operate the same way, even cautious drivers may struggle to operate an unfamiliar car at first, which is why dealerships maintain strong insurance coverage for these exact scenarios.
Who Is Liable When a Test-Drive Accident Happens in California?
Liability in these cases typically depends on whoever caused the accident. California follows fault-based accident laws, meaning the party who caused the crash is financially responsible for the damages. So if you or another driver is at fault for the accident in question, then the corresponding insurance provider will cover for the damages.
However, in some cases, the dealership may be partially responsible if the vehicle had mechanical defects, failed to supervise the test drive properly, or if a salesperson encouraged unsafe driving, then the dealership and to an extent the car manufacturer can be responsible for damages.
Do Dealerships Make You Sign a Waiver Before a Test Drive?
Some dealerships do require a quick signature before a test drive. However, these waivers typically allow the dealership to check your license and establish that you are responsible if you violate traffic laws. In fact, they do not waive your rights to injury compensation nor protect the dealership from any negligence claims. As waivers must follow California contract laws, they cannot excuse any acts of gross negligence.
Does the Dealership’s Insurance Cover Test-Drive Accidents?
Most California dealerships carry garage liability policies or garage keepers insurance, which typically cover:
Vehicle damage during a test drive
Property damage
Bodily injury to others
Liability involving employees and customers
Dealership policies usually serve as secondary coverage, stepping in after the driver’s personal auto insurance.
What If You Don’t Have Car Insurance?
California law requires drivers to be insured, but some test-drivers may not have an active policy. If you are uninsured then the dealership’s policy may still cover damages, but they may try to hold you financially responsible.
In addition, you may face penalties for driving without insurance, even during a test drive. However, if someone else has caused the car crash, you can still file an injury claim to hold them accountable for their actions and damages.
What If the Dealership Car Is Totaled?
Dealership vehicles are often new or high-value, so total losses can be expensive. Fortunately, their insurance typically covers vehicle replacement, but depending on the nature of the accident, your personal auto policy may provide coverage depending on fault.
However, it is important to note that you are rarely required to pay out-of-pocket unless you intentionally caused the crash or committed a DUI offense. If a dealership is forcing you to pay out-of-pocket, or if you need legal assistance it is highly recommended to consult with a personal injury lawyer.
Injured During a Test Drive? Our California Personal Injury Lawyers Can Help
If you were hurt while test-driving a vehicle at a California dealership, you should not navigate the insurance maze alone. At Frank Penney Injury Lawyers, our team of car accident lawyers will examine the case and guide you throughout the legal process to ensure your rights are protected and those responsible are held accountable.
Call us today at 888-888-0566 or by filling out our online contact form for a free case consultation.