Describe the test-drive process
Tell the agent whether an employee rides along, how you verify the driver, how long a drive can last and whether overnight use is allowed. Ask how customers qualify as insureds and whether the policy imposes restrictions.
A customer’s personal auto policy does not settle your dealership’s coverage. Other-insurance provisions, state law and the facts of an accident can affect which policy responds. Confirm how damage to the inventory vehicle is insured as well as liability to other people.
Dealer plates and insurance are separate
Your state determines permitted dealer-plate use. Your insurance policy determines eligible vehicles, insured people, uses and covered losses. Satisfying one set of rules does not automatically satisfy the other.
Do not lend plates or allow unfamiliar drivers to use inventory without checking the legal and insurance requirements. Keep clear records of the vehicle, driver and reason for use.
Tell us about furnished vehicles
Regular personal use by an owner, employee or family member should be discussed explicitly. Furnished-auto arrangements can affect rating, insured status and the need for personal auto protection.
Include commuting, weekends, household access and vehicles kept away from the lot. Review changes before a new person begins regular use.
After a test-drive accident
Get emergency help when needed, exchange information, document the scene safely and report the incident promptly under the policy’s instructions. Preserve the test-drive agreement, driver information and vehicle records.
Do not promise a customer that a particular policy will pay. The insurers need to review coverage and responsibility based on the actual facts.