Do you need insurance to test drive a car?

No, you do not need insurance to test drive a car since you are typically covered under the seller’s auto insurance. For instance, car dealerships are required by law to have their own insurance for all of their vehicles so they are protected in case of accidents or injuries during test drives.

There are only a few instances when having your own insurance before a test drive may be a good idea. This depends on who owns the vehicle you are test driving and if they ask you to accept liability.

When You Need Insurance to Test Drive a Car

• You sign a waiver accepting liability. Some dealerships will ask you to sign a loaner/demo waiver. This typically happens if you are going for a longer test drive or if no one from the dealership will be with you. By signing the waiver, you are accepting liability for any damages or injuries that occur during the test drive. If you cannot pay for potential damages out of pocket, it is best to have your own coverage before test driving. This could be a non-owner insurance policy if you do not own a car.

• You are test driving a private seller’s car. Unlike car dealerships, private sellers are not required by law to have auto insurance that covers test drives. If they are not insured, you may be held liable for any damages. To minimize this risk, check with the seller to make sure they have coverage on the vehicle.

Additionally, it is important to keep in mind that if you drive recklessly while test driving a car and cause an accident or damage the vehicle, the seller may hold you liable for the cost of repairs even if they have their own insurance policy on the car. The seller may also hold you liable for damages if they only carry liability insurance and the vehicle itself was damaged, or if the cost of damages exceeds their policy limits.

To learn more, check out WalletHub’s guide to non-owner car insurance.