Car Accident Involving a Test-Drive Vehicle: Who’s Responsible?
Being involved in a car accident with someone test-driving a dealership vehicle can be more complicated than a typical car accident. Insurance coverage depends on a number of factors, including whether the driver is a dealership employee, who owns the vehicle, and what agreements were signed prior to the test drive. Understanding these nuances is essential if you were injured in such an accident.
Understanding Insurance Coverage for Test-Drive Accidents
In Texas, insurance coverage generally follows the vehicle. This means that when someone is driving a dealership car, the primary coverage could either be the dealership’s policy or the driver’s personal auto insurance. Which policy applies depends on the agreements made before the test drive.
Sometimes dealerships require the driver to use their own insurance. Other times, the dealership assumes responsibility through their commercial policy. Until the accident occurs and insurance information is exchanged, it can be difficult to know which coverage will apply.
Personal vs. Dealership Insurance: Which Policy Applies?
The key to determining coverage lies in the policy language and any agreements signed at the dealership. For example:
If the driver signed paperwork stating their own insurance would cover the test drive, their personal auto policy would generally be primary.
If the dealership assumes responsibility, their commercial policy may be the primary source of coverage.
For those injured, understanding which policy applies is critical to ensuring your medical bills, lost wages, and other damages are properly compensated.
When the Driver Is an Employee: Commercial Policies Explained
If the person test-driving the vehicle is a dealership employee and was acting within the scope of their employment—moving cars, assisting customers, or performing a test drive—then the dealership’s commercial auto insurance usually becomes the primary policy.
Commercial policies often have higher limits than personal auto insurance, which can increase the potential recovery for injuries. This distinction is important because the size of the policy directly impacts how much compensation you might be able to pursue.
Why You Might Not Know Coverage Immediately
As an injured party, you may not know which insurance will respond until:
A police report is filed.
Insurance information is exchanged.
Policies are reviewed prior to filing a lawsuit.
This uncertainty makes it essential to involve a knowledgeable personal injury attorney early, who can help navigate the insurance investigation and ensure all available coverage is identified.
How an Attorney Can Help Maximize Your Recovery
An experienced attorney will:
Review both personal and commercial insurance policies.
Determine which policy applies based on the driver’s status and agreements signed.
Negotiate with insurers to maximize compensation for medical bills, lost wages, and pain and suffering.
Represent you in litigation if insurers dispute coverage or attempt to undervalue your claim.
Having legal guidance ensures you are not left uncompensated due to complex insurance arrangements.
