Today potential car buyers are pampered with a wide range of choices in terms of the car’s make, model, price, features, and so on. As a result, even an experienced car owner may get confused about which car to buy. So, many people, especially people with enough driving experience, prefer to have a test drive of a car before making the final purchase.
Therefore, it is important to be aware of the vehicle insurance requirement of the car you use for a test drive.
Does a Demo Car for a Test Drive Need Insurance?
India’s Motor Vehicles Act 1988 makes it mandatory for all vehicles to have third-party insurance coverage before they can ply on Indian roads. The law is applicable to both registered and unregistered vehicles. So, driving a vehicle without third-party insurance coverage can attract fines and imprisonment.
Since you’ll test-drive a car on the roads, the particular car needs to be adequately insured. Therefore, enquire with the car dealer to ensure that the car you’re about to test drive has the proper car insurance coverage.
Besides, you drive the car for the first time while taking a test drive. So, it’s natural that you’ll not be familiar with the car’s control or engine power. Therefore, it becomes more important to have the proper car insurance coverage for the car marked for providing test drives.
Which Type of Motor Insurance Is Good for a Car for a Test Drive?
A third-party vehicle dealer’s four-wheeler insurance fulfils the statutory requirements. However, it is a liability-only insurance that doesn’t cover the damages caused to the insured vehicle.
Therefore, the dealer should consider purchasing comprehensive car insurance online as it provides full insurance protection against both third-party liabilities as well as own-damage for the insured vehicle.
Moreover, comprehensive insurance can reduce the liability of the person driving the car in case of an accident.
What Are the Documents Required to Test Drive a Car?
You only require a valid four-wheeler driving license to test drive a car. You may also need to sign a form provided to you by the dealer before taking the test drive. This document may contain a clause transferring the responsibility to the driver while taking the test drive. Hence, ensure the car you are about to test drive has comprehensive vehicle insurance.
Things to Remember When Taking a Test Drive
- It’s the responsibility of the auto dealer, not the potential customer who will test drive, to ensure the test-drive car has the proper vehicle insurance coverage.
- The responsibility for the damage done to the car in an accident during the test drive can transfer to the driver, especially if you’ve signed a document stating the same before taking the test drive.
- The responsibility to have the proper car insurance coverage will be transferred from the dealer to the customer once the car is sold. The new car owner can easily purchase the desired car insurance online as per his/her need.
- If you’re selling your old car, then it’s your responsibility to have valid for your car while offering a test drive.
- The dealer may charge you for any accident arising out of reckless driving on your part, regardless of the type of insurance the car has. So, test drive a car insurance vehicle only when you are fully confident of your driving capabilities.
By now, it must be clear to you about the vehicle insurance requirement for a car used for a test drive. Now, all you need is to arrange the test drive and finalise the booking of your dream car.
