Taking a test drive of a new car at the dealership is ideal to understand if the car suits your requirements. Not only does it give you the peace of mind that there are no fundamental issues, but it also allows dealers to demonstrate the features and capabilities of the car. But, do you need insurance to test drive a car?
This article helps you clear doubts about insurance for a test drive car and why it is necessary to insure a new vehicle.
Is it possible to test drive a car without insurance?
To ply on Indian roads, all motor vehicles must be insured with the mandatory Third-party Liability plan. Whether a private, commercial or test-drive car, all cars must be insured against third-party liabilities. Driving an uninsured car attracts penalties and maybe even imprisonment.
Ensure you talk to the dealership about the validity of the insurance of the test drive car before you go on a spin. The Comprehensive Car Insurance policy is undoubtedly a better coverage for a motor vehicle. It covers both third-party liabilities as well as damages to the insured car. Ensure the test drive car is comprehensively insured.
Typically, dealers buy a policy that will pay for damages to the insured car and liability claims made while a customer or an employee is driving the car.
It is wise to confirm that the test drive car carries vehicle insurance before getting behind the wheel. When test driving a car from a dealership, ask if the vehicle is insured, and if you are liable for any damages/losses that may arise due to an accident. It is advisable to test drive a car only if it has an active insurance plan to avoid unforeseen liabilities.
Can you test drive a used car without insurance?
Whether a new car or a used car, all cars should be insured, including a second-hand car. The used car should be insured with the mandatory Third-party Liability plan (TP). Test driving a second-hand car without insurance could result in some hefty traffic penalties.
Because car insurance plans can differ, it is always a good practice to enquire about the specific coverage of the used car you’ll be test driving. Ask whether the used vehicle carries the following coverage.
Third-party liability coverage: The Third-party Car Insurance plan pays for injuries or property damage to a third party in case of an accident while test-driving a car.
Own damage coverage: Own Damage (OD) cover provides coverage for repairs or replacement of damaged parts of the used car if it is damaged in an accident while test driving the vehicle. It also covers damages or losses due to natural calamities, man-made calamities and even theft.
Which motor insurance covers a test drive car?
If you want to test drive a new car from a dealer, you are typically covered by the vehicle dealer’s car insurance. The dealer selling the new car should take care of insuring the test drive car.
Typically, insurance for the test drive vehicle should be insured with mandatory Third-party insurance. However, the test drive car should be insured with Comprehensive insurance for holistic coverage. It covers both third-party liabilities and damage to the vehicle.
What documents do you need to test drive a car?
The only requirement for test driving a new or a used car is to have a valid Driving Licence (DL). However, the car you are test driving should be comprehensively insured so that you can be secured against an accident or liabilities arising from third-party injury or damages to their property.
While the DL is mandatory, do you need proof of insurance to test drive a car? No, you do not require car insurance to test drive a car. Car insurance for the test drive car is typically taken care of by the dealer. When you book your test drive, make sure you check if the car carries valid insurance to drive the vehicle on Indian roads.
Things to remember
Dealerships must insure their test drive cars so that the vehicle is legally compliant to drive on public roads.
When the dealer sells the car, it is no longer the dealer’s responsibility to insure it.
The dealership carries both the Third-party liability and Own Damage cover that pays for damages to the test vehicle or in case of third-party liabilities that can happen during a test drive.
Frequently asked questions
Here are some of the common questions about insurance for a test drive car.
Is my existing car insurance enough to test drive a new or a used car?
No, your existing insurance for a car that you own does not cover another car. Whether a new or a used car, the test drive car should be insured with compulsory Third-party Insurance to run on public roads.
Do car dealers require insurance for their test drive cars?
Yes, all cars in India should be insured with a Third-party plan. Ideally, the dealership will insure the test drive car before offering the vehicle for a test drive.
Can the dealer hold me responsible for damages to the test drive car?
While the test drive car may be covered under a dealer’s insurance, the dealership might hold you responsible for damages to the car, especially in case of reckless driving.
Can I let someone test drive the car I am selling if I don’t have car insurance?
If you are selling an uninsured car, you should not let anyone test drive the car. You must insure your car with a Third-party Car Insurance policy so that it can be test driven on public roads. However, insuring your car with the Comprehensive Car Insurance policy lets you be at peace knowing you are covered against damages to your car caused during the test drive.
Who is responsible for damage to the car during a test drive?
For broader insurance coverage, the test drive car should be insured with the Comprehensive Car Insurance plan to mitigate losses arising from damages to the car and third-party liabilities. Ideally, the car dealer has to recover the costs by raising a car insurance claim against the policy. However, in specific cases (reckless driving), the dealer will hold the person who is testing the car.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.
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FAQs
Do you need Insurance to Test Drive a Car? Find the Answer? ›
You typically don't need to show
Do I need insurance to test drive a car? Even if you're only test driving a car, you still need to be insured. Always check you're insured before you set off on your test drive. If you're browsing or buying the car from a main dealer, then this usually won't be a problem as they'll have cover in place.
Can someone test drive my car? ›You can ask a friend or family member to come along for the test drive. Check with your insurance policy to see if you are covered by other drivers of your vehicle.
Does the salesman come on a test drive? ›Once the salesperson gets the appropriate license plate for the vehicle and the keys, he or she will accompany you on the test drive, in most cases. Due to the risk of vehicle theft and joyriding, many dealers simply require that someone on their staff accompany the prospective buyer.
What happens if you crash a car on a test drive India? ›The dealership carries both the Third-party liability and Own Damage cover that pays for damages to the test vehicle or in case of third-party liabilities that can happen during a test drive.
How long is BMW test drive? ›This is where the BMW 24-hour test drive comes in. Spending a whole day with the BMW iX can make a big difference in allowing you to truly test BMW's dynamic driving, connectivity and practicality as part of your daily life.
What happens if you crash on a test drive UK? ›What if there is an accident and you are the one in the driving seat? You'll need to make sure you have the right insurance policy to cover you, even if you are only taking the car out for a test drive because if you are the one driving, you might be liable for responsibility.
What is commentary driving? ›Commentary driving involves describing aloud exactly what you are doing as you are driving, and what you are doing to avoid potential risks. It's useful for both experienced and learner drivers.
What should you avoid passing a vehicle on the highway? ›It is often illegal and unsafe to pass vehicles when your line-of-sight is limited or restricted by a hill, curve, or weather conditions. It is illegal to pass traffic when there is a solid yellow line on your side of the roadway. Never pass a stopped school bus that is and loading or unloading children.
Can you test drive a car with a provisional license UK? ›Because you won't have a full licence, you won't be able to test drive any cars, so bring someone along who has passed their test, and you can ride in the passenger seat with them.
Which car has passed crash test? ›
Mahindra XUV300
Even though the Tata Nexon was once promoted as the safest car in the country, it's the Mahindra XUV300 which became the first model to get the full 5-star Global NCAP rating. Also, unlike the Tata Nexon, which has a 3-star child occupant protection score, the XUV300 has scored 4-star.
Most test drives are uneventful. But every once in a while a test driver gets into a car crash. Here is what you need to know before you test drive a car: If you're involved in an accident during a test drive, be sure to take the same steps you would take after any car accident.
What speed is the car crash test at? ›There are a few reasons why cars are tested at 64 kmph. Firstly, most accidents on the roads take place under 64 kmph. Part of the reason why that is so is that either they occur in city conditions or people decelerate at the time of the collision on the highways and the effective speed is somewhere around that.
Do you need insurance for test drive UK? ›If you're buying a new car privately, you need to make sure you're insured to take it out for a test drive.
Can you insure a car before you buy it UK? ›You can insure your new car before you pick it up, letting your insurer know the date you need the cover to start. You'll need to provide all details ahead of time, including the registration and some insurers may require your logbook/V5C.