Car dealerships are responsible for test drive accidents if the company itself was negligent. The dealership may be at fault if they failed to maintain the vehicle or if an employee’s negligence caused the crash. Dealerships should always have fleet insurance policies that cover property damage. If the test driver caused the accident, they can still be held personally responsible. A third party may even be responsible. This blog discusses what happens if you crash during a test drive so you know where you stand before visiting your car accident attorney.
How Does Liability Work for Test Drive Accidents?
Before a test drive, it’s good to understand how liability is assigned in the event of a crash. California is an at-fault state, which means that the person responsible for the crash is usually held liable for damages. Test drivers are not legally protected simply because the vehicle is the dealership’s property, so if they act negligently, they can be held legally responsible for any damages they cause.
In some cases, the salesperson accompanying the test driver can either cause or contribute to the crash. Under vicarious liability, the dealership can be held liable for its employees’ negligent actions. If another driver causes the accident, they can be financially responsible for the dealership’s property damage and the test driver and salesperson’s medical expenses. Determining fault requires an examination of everyone’s actions leading up to the crash.
In California, liability is also affected by the comparative fault principle. Under comparative fault, multiple people can share liability based on their contribution to the accident. For example, let’s look at an accident where a car driven by a test driver was hit by another car. The other driver was texting, so they failed to yield when they should have. At the same time, the salesperson was loudly discussing the features of the car. As a result, the test driver was too distracted to notice that the other driver wasn’t stopping.
All three people involved were injured, and both cars were damaged. Because each person contributed to the crash, they all share liability. But is a car dealership responsible for damage in this situation? The dealership carries the salesperson’s liability. The benefit of comparative fault is that multiple people share the financial burden of the crash. The drawback is that each person’s compensation is reduced by their percentage of fault.
Does the Dealership’s Fleet Insurance Cover Test Drive Crashes?
Car dealerships must have special commercial auto insurance known as fleet insurance. Fleet insurance provides protection for the dealership if a vehicle is damaged before it can be sold. However, the exact coverage depends on the specific policy. Different insurers have different policies and coverage, so there is no guarantee that the dealership’s insurance will cover your damages. Make sure you understand these details before the test drive begins.
In some cases, where the damage is minor, the dealership may absorb the cost of repairs following a test-drive incident. If the damage is severe and liability is uncertain, the dealership can seek additional compensation from the at-fault driver for repairs.
When Is the Dealership Liable for a Test Drive Accident?
Dealership owners have a strict legal responsibility to maintain their vehicles and make sure they are safe for test drivers. If a dealership ignores a recall announcement, the business may be held liable for negligence if a crash results from the hazard identified in the recall. Furthermore, if the dealership failed to maintain their vehicles and a preventable issue caused harm to the test driver, the dealership can be held responsible.
If an employee allows an unfit driver to test a vehicle, the company will be liable through vicarious liability. A dealership salesperson must verify that the customer has a valid driver’s license and must deny a test drive if the customer appears visibly intoxicated. Under California Civil Code Section 2338, employers can be liable for the negligent acts of their employees. If an employee provides poor instructions or distracts the driver, their employer must answer for it.
Do I Need a Car Accident Attorney for a Test Drive Accident?
It can significantly increase the likelihood of a favorable outcome if you work with a car accident attorney. Accident cases involving commercial insurance, vicarious liability, personal auto insurance, and the defendant’s insurance can be extremely convoluted. Having a legal representative to untangle the web of liability removes the burden from you. If you want to find out what happens next if you crash a car on a test drive, contact HHJ Trial Attorneys to schedule a free case review.
