The process of buying a car starts with the test drive, which is one of the most thrilling parts of purchasing the vehicle because the buyer gets to experience firsthand how the car runs.
However, for first-time buyers, crashing the car during the test drive is a fear that comes to mind when they go for it. While the insurance policy of the dealership covers initial payment for damages caused in the crash, who pays ultimately depends on several considerations, such as liability, documents, and the conditions surrounding the incident.
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Insurance policy of dealerships
In India, many licensed dealerships offer special insurance policies for the cars they sell in their garages. This kind of insurance policy is called fleet insurance or garage insurance. As long as a customer crashes the car under normal conditions, the dealer’s insurance policy will be responsible for either repairing the damaged vehicle or paying its total cost.
Times when payment may be required
Nevertheless, there are times when you cannot assume yourself to be exempt from any form of payment. This applies especially when there were cases of recklessness on the part of the driver, including overspeeding and violations of traffic rules. Liability will be assumed in these cases, and the dealer or the insurer can demand that you settle the costs for repairs, partial or otherwise. It also happens that some dealers demand a signed liability or indemnity form prior to delivery of the keys, depending on the dealership's policy.
The role of your personal insurance
If you have your own car insurance plan, this will work as supplementary insurance if the primary one from the dealer fails to provide for full coverage in the event of an accident. Whether or not you should make a payment will largely depend on the cause of the accident, since the other party will be at fault should the collision be caused by another person's negligence or mistake.
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Key legal facts
There are some basic things that you should never overlook to avoid facing legal consequences. Driving without a valid license and presenting fraudulent documentation will result in complete liability, as the insurance company might refuse the claim. Furthermore, the dealership might also require you to pay a deductible fee, which is a fixed percentage of the total cost of repairs.
