What happens if you wreck a car while test driving?

Who is liable in a test drive accident?

Whoever caused the crash is responsible, and more than one insurer may be involved. Colorado is an at-fault state: Colorado is an at-fault state. The driver who caused the crash, through their insurer, is responsible for the other people’s injuries and losses.

On a test drive, three sources of coverage come up most often:

• Your own auto policy. Some policies cover cars you do not own, some do not. Check yours.
• The dealership’s insurance. Dealers commonly insure their inventory, including cars out on test drives. What that policy covers varies.
• The other driver’s insurance. If someone else caused the crash, their liability coverage should pay, as in any other crash.

Which one applies depends on how the crash happened and what each policy says.

Who pays for property damage?

The person at fault is responsible, usually through insurance. That may mean your insurer, the dealership’s insurer, or the other driver’s insurer. Damage to the dealership’s car, another vehicle, or a fence may be paid by different policies.

Do not assume you owe everything because you were driving. The dealership’s coverage or another policy may shift the cost away from you. Do not agree to pay anything on the spot, either.

What if you are hurt on a test drive?

You may be able to claim for your injuries if someone else’s carelessness caused the crash. That can apply whether you were the driver, a passenger, or a dealership employee riding along.

Medical bills, lost pay, and pain and suffering can all be part of a claim. If you were partly to blame, Colorado’s fault rule still lets you recover when you were less than 50% at fault, with your award reduced by your share (C.R.S. § 13-21-111).

What should you ask before a test drive?

Ask three things before you leave the lot.

1. Is this car currently insured, and by whom?
2. What happens if there is a crash?
3. Do I need to sign anything first?

Many dealerships have you sign an agreement about responsibility. Read it before you sign. If you do not understand a line, ask for an explanation. You can also take a photo of the document for your records.

What should you do after a test drive crash?

Handle it like any other crash, and tell the dealership right away.

• Call the police and ask for a report.
• Photograph the scene, all vehicles and any injuries.
• Exchange information with everyone involved.
• Notify the dealership immediately.
• Get medical care, even if you feel fine.
• Do not give a recorded statement to an insurer before you understand your options.

Why can a test drive crash be harder to sort out?

Because there are more parties and papers than in a normal crash. The car belongs to the dealership, you were the driver, and another driver or a passenger may be involved. Each has an insurer, and the dealership may have asked you to sign something. Each insurer may point to someone else.

Keep every document: the test-drive agreement, the dealership’s insurance information, the police report and your medical records. Do not agree to pay the dealership anything before you know what coverage applies.

When should you call a lawyer?

Call one if you were hurt, if fault is disputed, or if the dealership or an insurer says you owe money. Several policies and a signed agreement can make this more confusing than a normal crash. A lawyer can review the paperwork and the coverage. Talk to us for a free case review.