Who is Responsible if Your Customer Wrecks or Damages Your Vehicle on a Test Drive?

Legislators raised this question during the last legislative session. They proposed that a large sign be posted in the dealership or the person test-driving the vehicle sign a disclosure. This bill did not pass because many used car dealers are already using a test drive agreement.

Using a test drive agreement benefits the dealer in many ways. It discloses how long the vehicle can be test driven, how many miles they may drive, who can drive the vehicle, disclosure of insurance, valid drivers license and most importantly, who will pay first if the vehicle is wrecked or damaged. It is not necessary to fill out every line of the test drive agreement but only what you may think will protect you in each case. It is important they sign it agreeing to the terms of the test drive.

Some dealers have had customers test drive vehicles over the weekend and drive to Las Vegas or Wendover when they should have been out for only a few minutes. Without a test-drive agreement, dealers cannot have the person arrested for stealing their vehicle because no time was determined in how long they could drive the vehicle. How can you give accurate information to the police if the vehicle never comes back?

If you have had a test drive vehicle wrecked, you know the hassles you will have with their insurance company as well as your own. Many insurance companies question who is responsible for damages and who should pay. Having your customer sign the test drive agreement will help. Dealers have a responsibility stated in their insurance contract that says you will protect the asset. A test drive agreement is a very simple way to cover your asset.

Consumers are becoming more and more accustomed to signing the agreement. They understand the stolen vehicle problems and insurance problems that exist. They should know who is responsible if they damage your vehicle.

If we truly want to keep government out of our business and we want to be self-regulated; if you want to protect your assets; if you want to have your customer know who is responsible for damage; having your customer sign the test drive agreement is a must.

If you have further questions about the test drive agreement, please let us know.