What Happens If You Crash on a Test Drive?

Acquiring a new vehicle requires a substantial investment, so people insist on a test drive before making a purchase. Although rare, an accident can occur during a test drive with a vehicle that’s not yet yours.

Resolving a car accident that occurred during a test drive is often more complicated than a regular crash. If a car accident occurs during a test drive, it may be challenging to establish whose insurer will cover accident-related losses.

Consult a trusted New Mexico car accident attorney if you’ve sustained an injury in a crash caused by someone else’s negligence, especially if you were on a test drive.

What To Know Before Taking A Test Drive

Here are a few tips to keep in mind before taking a vehicle from a lot for a drive:

• Car dealerships carry fleet insurance for all vehicles in their yards, with the test driver offered coverage in case of a crash.
• When involved in a crash during a test drive, follow the same procedures you would after an accident.
• Your auto insurance will also transfer to any vehicle you’re test-driving, meaning your current coverage will cover the losses that arise after the crash.

Who Is Responsible for Test Drive Car Accidents?

New Mexico is an at-fault state, which means the negligent party is responsible for paying for property damage and injuries that arise from the accident.

Here are the potential parties who may cover the losses:

• You, as a Potential Buyer: No special rules are designated for accidents that occur during test drives. You can avoid test drive car accidents by familiarizing yourself with car features and applying extra caution during steering, braking, and acceleration.
• Another Driver: If a speeding driver crashes into the rear of your vehicle, they are responsible for accident-related losses.
• The Dealer or Seller: If the seller or their representative interferes with you during the crash, causing the accident, they may be fully or partially at fault for accident-related losses. A dealer may also be liable for the losses if the accident occurred due to a failure to maintain the vehicle.
• Vehicle Manufacturer: If the accident occurred due to a design defect, the manufacturer may be liable for the losses.

Whose Insurance Covers Car Accidents During Test Drives?

Similar to traditional liability insurance, insurers of different parties might be called upon to pay for accident-related losses.

The answer depends on the facts and circumstances of the accident.

The Insurer of the Buyer

If investigations reveal fault on the buyer’s part, the dealership or other buyers can initiate a claim to recover property damage or injury-related losses. Further, your insurer should cover the losses up to the percentage of fault.

Suppose the crash resulted in $50,000 in damage, and you were 60% at fault for the incident. In that case, your insurer would cover damages worth $30,000.

Dealership’s Insurance

Car dealerships maintain vehicle fleet insurance in their lots, which usually covers damages after a test drive crash. The dealership might absorb the losses through your insurance or pursue a third-party claim through your insurer.

The Other Driver’s Car Insurance

You and the dealership can file a claim against the other driver if they are at fault for the accident. Sometimes, the other driver might have no or inadequate coverage.

In that case, the dealership might have to turn to fleet coverage to meet the shortfall of losses not covered by their insurer. Alternatively, the buyer may use underinsured or uninsured motorist coverage to cover accident-related losses.

Note: Some dealerships require buyers to sign liability waivers to shield them from losses in case of an accident. Waivers transfer some or all legal liability to the test driver if damages occur. Read the contents of a waiver to understand your responsibility before signing up.

How Can a Lawyer Help Me After a Test Drive Car Accident?

You should contact an experienced car accident attorney immediately after a test drive crash. If the liable party is insured, their insurance provider would cover injury-related losses.

However, if the liable party is uninsured or underinsured, ways to cover accident-related losses may become complicated.

The input of a car accident attorney is valuable in any of the above scenarios, as it can protect your rights as an injured victim and promote fairness in the outcome.

If you’re pursuing compensation for injury-related losses, you must prove the sequence of events and circumstances that caused the crash.  You must also communicate with the insurer of the at-fault party and their legal representative.

A car accident attorney will take over the following duties:

• Conduct investigation by compiling police reports, medical records, and recording witness testimony
• Establish fault on the other party
• Creating a strategy to obtain compensation on your behalf
• Litigating your injury claim in court
• Fighting for a fair settlement value that matches your injury-related losses
• Adhering to legal timelines, including the New Mexico statute of limitations
• Providing you with legal advice on an approach that will yield the best outcome

Get Legal Advice From an Experienced Car Accident Attorney

While a test drive can be fun for drivers, it can turn tragic in case of a car crash. Fortunately, New Mexico is an at-fault state, which means the party that causes the accident covers accident-related losses.

Parnall Law Firm is highly experienced in car accident cases, giving us an edge to pursue a fair settlement value for your losses. Contact us online or at (505) 268-6500 for a free consultation.