Why It's Important to have Car Insurance While Test-Driving Cars

By Joel Arellano | October 18, 2011
You've finally purchased your dream car, a black 2003 Infiniti G35. Even better, your Craigslist ad selling the family 2000 Ford Expedition has received several serious inquiries with one potential buyer coming that evening to do a test drive. Should you go ahead and cancel the gas-guzzling SUV's insurance? Not unless you want to be paying for repairs if the potential buyer damages the vehicle during the test drive. Or, worse, possibly going to court to cover their medical bills. According to Bob Passmore, a spokesperson for the Property Casualty Insurers Association of America, the law usually views the vehicle's insurance owner responsible for any claims. That means, in the above scenario, your insurance company will pony up for any repair costs to the SUV caused by the potential buyer during his or her test drive. This is also why car dealerships usually verify if customers have insurance. "They sign a document showing that they have car insurance and that it would cover them on the test drive," says Fred Buchi, a sales associate at Liberty Bay Auto. "If we didn't do that, our insurance would be so expensive." Penny Gusner, a consumer analyst at CarInsurance, adds that the customer's insurance—specifically, collision insurance—will then take over any liabilities during the test drive. Note that most insurance companies cover up to your liability coverage or vehicle's cash value. Crash that shiny black new BMW 7 Series during a test drive while your insurance barely covers your 1998 Dodge Neon and you'll soon be swimming in debt. Automotive.com's take: Best rule of thumb is to keep your insurance until after the new owner has the pink slip. Then maybe wait a little longer. Source: CarInsurance
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3 comments
selling used cars in sandiego
selling used cars in sandiego

Really you had given a good advice about the importance of having car insurance while Test-Driving cars also. Thanks for sharing.

Auto Quote Discount
Auto Quote Discount

That's good advice. Not sure why anyone would cancel before selling the car but I guess some do in order to save money.

CARSPH
CARSPH

good advice thanks..

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