Buying a car without insurance is a big no-no. However, before you make the purchase official and put your name on the vehicle title, the car is still under the dealership’s or seller’s car insurance. If you’re just browsing the market and test driving, then your lack of car insurance shouldn’t keep you from doing so. In fact, test driving is one of the only circumstances where a truly uninsured driver can drive without personal coverage. In this post, we ask and answer why, along with tips on getting the best car insurance for new drivers that usually shop for cars with no insurance yet.
Who Has The Insurance For a Car That is Being Test-Driven?
When a car is on a dealer’s lot and unsold, then it is their responsibility to insure it until it gets sold. They usually do this with a commercial auto insurance or inventory auto policy which provides basic coverage to each one of their cars.
Since test drive vehicles are still their property, insurance responsibility falls onto them. Because a commercial new or used automobile is not registered and titled as a personal vehicle, it needs specialized garage liability insurance that is customized for such businesses. When a lot’s vehicle is damaged or when a third party suffers losses or injuries while the lot car is being driven, the insurance that was purchased by the dealer will cover these events. Employees and customers who are test-driving vehicles on the lot are protected from liability and physical damage claims.
What if You Buy a Car From a Private Seller Rather Than a Dealer?
When purchasing a vehicle from a private seller, you do not have any stake in the automobile. While much the same, nevertheless, with a little variation in terminology, there is a significant distinction between commercial auto insurance and personal car insurance.
This is why it’s critical to verify with the owner that they are covered and have sufficient limits of liability. There are rules to follow, but no one wants to get caught up in a years-long legal battle because they didn’t ask a simple question. Even if you are the one who is injured, the owner of the vehicle will be held accountable for any damages caused by a driver in their car.
What to Know When Test Driving a Car
After looking around a dealership’s lot and finding a vehicle that attracts your attention, it’s time to ask for the keys. It’s finally time to request the keys so you can drive the car. Before you may drive any lot of cars, the dealer will request your driver’s license, which will be verified. Many purchasers are unaware that the sales agent begins qualifying you as soon as the license is transferred. You cannot buy vehicle insurance unless you have a driver’s license. However, in order for the dealer’s car insurance to cover you, you must have a valid driving license.
If you do not have insurance, you will be required to obtain it before taking ownership of the vehicle. You may only acquire private insurance after you buy the vehicle and finance it. Before allowing you to depart, the finance employee will need a copy of your insurance cards. You can now buy insurance for the automobile to protect your assets and the bank’s property since you have an insurable interest in it. At the end of the day, always ask the original owner of the car you are interested in their insurance coverage because while you are test driving, that insurance technically becomes yours.
Insurance Navy can help you find the best car insurance coverage at the most budget-friendly price in just a few minutes. Get a free car insurance quote online today via our website or mobile app. Looking to speak to a representative? Give us a call at 888-949-6289 or stop in at one of our many locations.