Is Car Insurance Needed to Test Drive a Vehicle? If Yes, Who Will Pay?

Many people might not know the vehicle insurance requirements before test-driving a car. Check this post to learn more about insurance requirements to test-drive a vehicle.

Buying a car can have an aspirational value to its owner. A car can symbolise your success and a token of self-appreciation after years of hard work you put in to achieve the financial standing to own and maintain the particular car. 

Probably, you have done your homework by now and have shortlisted a few models based on the manufacturer, price, and specifications. Next, you must test-drive them and close the deal on the one you like best. 

But wait. Safety comes first.

It is vital to ensure that the car you’re about to test drive has car insurance coverage. Let’s delve deeper.

Importance of a Test Drive

One of the vital steps in the car-buying process is to take a test drive of the car you wish to buy. You don’t want to spend your hard-earned money to buy a car only to discover some glaring issues on your way home. Instead, taking a test drive beforehand ensures your satisfaction with the car’s performance.

A test ride can help an experienced driver practically test the ride quality and recognise any potential problem. For example, a person’s height or overall physique can make a car model unsuitable for that particular driver even though the car is good in all aspects. 

Moreover, there can be manufacturing defects or design flaws in the car, like a sliding clutch, a defective gearbox, or uncomfortable interiors. These issues can be clearly noticed while taking a test ride of the car. Fortunately, many reputed car manufacturers and auto dealers offer the test ride facility to their prospective buyers.

Is Car Insurance Required During a Test Drive?

As per India’s Motor Vehicles Act, 1988, third-party vehicle insurance is a statutory requirement before plying any vehicle on Indian roads. So now, since you’ll be taking the test ride of a car by driving it on the road, the car must be covered by at least a third-party car insurance policy. 

However, car dealers are recommended to have comprehensive car insurance, which covers both third-party and own damage for the insured vehicle. Moreover, it makes sense to have comprehensive car insurance for a car used in a test ride as it will be insured against any accident caused during the test. 

Do I Need to Purchase Car Insurance Before Taking Test Ride?

You must purchase a car insurance policy only after you buy the car. So if you don’t yet own the car you are about to test drive, then you don’t have to purchase insurance. However, car dealers must buy at least third-party car insurance for all their cars, including the ones dedicated to test-drive.

Thus, you can ask the dealer about the car insurance coverage status before you go for a test drive.

Who is Responsible in the case of Test-drive Car Accident? Who is Liable?

This must be the most important question on your mind. What happens if you crash the test-drive car you’re driving? Well, the liability in most scenarios would fall upon the dealership and the insurance company. However, there are a few scenarios where you might be held liable too. Some of these are mentioned below. 

• If you do not have a valid driving license. Most dealers will ask you for your driving license, so it should never come to that, but you might be liable if you furnished a fake license before test-driving. 
• If you’ve signed any document before taking the test drive stating that you will be responsible for any possible damages during the test drive. So make sure you check and read the fine print before signing any document for taking a test drive of a car.
• If the accident is caused by your negligence and the same is proved in court by the insurance company or the car dealership. So while it’s not your car, and you’re test-driving it and pushing its limits, ensure that you do so responsibly.

The Final Word

A short test drive before the final purchase helps quell any potential doubt regarding the new car. However, ensuring the car is adequately insured is equally vital, even though it’s the dealership’s responsibility until you purchase the car.