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Can you test drive a car without insurance?

  • Cars Explained
  • Xavier Sabastian
  • 4 minutes

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You usually don’t need to present evidence of insurance for a test drive of a car. This is either when you are buying from a dealership or from a private seller. In case of an accident, their insurance will normally cover any unexpected damage or physical injuries during test drives. A private seller’s insurance should cover injuries, but you should double-check that they have insurance and how much liability coverage they have.¬†

Regardless of who you buy from, it’s a good idea to have your insurance.¬†

Can you test drive a car without insurance?

Proof of insurance to test drive a car from a dealership

Even if you don’t have your auto insurance, you may typically take a test drive in a car you want to buy from a dealer. Every dealership is obligated by law to insure the cars on its lot. This usually takes the shape of a broad policy that covers any accidents or damage to their cars during test drives. Garage liability insurance is unique for commercial sellers, such as new and used car dealers, and it covers both consumers and workers of the dealer.

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If you do have auto insurance, though, you will have more peace of mind throughout your test drive. Suppose you cause an accident, and the dealer holds you responsible for the damage to their car. In that case, your insurance coverage can protect you if they try to recover repair expenses from you or your insurer.

If you sign a waiver with a dealer, you may be held accountable for any car accidents during the test drive. Individuals without insurance are exposed to a significant danger. Even if you have insurance, check with your provider to ensure you’re covered in these circumstances.

What is Garage liability insurance?

Garage liability insurance is a type of insurance that is specific to the car industry. Garage liability insurance will be added to the business liability coverage of car dealerships, parking lot or parking garage operators, tow-truck operators, service stations, and customization and repair shops. The policy covers property damage and bodily injury caused by operations.

Proof of coverage to test drive a car by a private seller

The car owner’s auto insurance usually covers the car. This is if you want to test drive a used car from a private seller. When dealing with a private party, a prospective buyer does not need to produce proof of insurance. This is just as they would at a dealership. Ensure you get a signed statement stating that you have the authorization to drive the car, that it is insured, and that you will not be responsible for the deductible if there is an accident.

Do you need insurance to test drive car?

Since auto insurance policies vary, it’s always a good idea to ask about the precise coverage. Inquire about the following with the car’s owners:

  • Liability insurance:¬†This insurance compensates for any injuries or property damage you cause while on a test drive.
  • Collision coverage:¬†If the car is damaged in an accident during the test drive, collision coverage will fix or completely replace it.

Basic requirements to test drive a car

To test drive a car, you usually need a valid driver’s license. However, test drive regulations may differ between dealerships and states.

Basic requirements to test drive a car

Do you require proof of coverage following the test drive?

You don’t need insurance to test drive a car at a dealership or with a private seller. But you will need to buy the car if your state mandates it. You must provide proof of insurance before acquiring possession and driving the car from the dealer’s lot. A private seller may not require evidence of insurance. As the new owner, you will be solely responsible for the car’s insurance.

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Here’s more info on¬†top-rated airport parking,¬†the best parking spots in your city, the most¬†affordable insurance¬†for your car, and¬†top-rated car washes near you.


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