Do you need insurance to test drive a car at a dealership?

Are Dealership Cars Already Insured?

In most cases, yes. Dealerships typically have an insurance policy that covers their entire fleet of test vehicles. This might verify that any potential buyer can take a car for a drive without needing to arrange their own insurance.

However, the level of cover varies, and it’s always worth checking what’s included before you get behind the wheel.

Which Insurance Category Cover Do Dealerships Provide?

Whilst policies differ between dealerships, most provide one of the following types of cover:

• Comprehensive cover: This protects the car against damage, theft, and third-party claims. However, there may still be an excess you’d have to pay in the event of an accident.
• Third-party only cover: This covers damage to other vehicles or property but does not cover damage to the test car itself.
• Trade insurance policy: Some dealerships operate under a trade insurance policy, which may have specific conditions regarding test drives.

It’s important to ask about the level of cover provided before driving the car. Some dealerships only offer minimal cover , which means you could be liable for any damage.

Are There Any Conditions for Test Drive Insurance?

Even if a dealership provides insurance, there may be certain conditions you need to meet before you can take a car for a test drive.

• Age restrictions: Some dealerships only allow drivers over a certain age (e.g., 21 or 25) to test drive vehicles.
• Licence requirements: You’ll typically need to hold a full UK driving licence, although some dealerships accept international licences.
• Excess payments: If you cause damage to the vehicle, you may have to pay an excess.
• Supervised vs. unsupervised: Some test drives must be accompanied by a salesperson, whilst others allow solo drives.

What If the Dealership Doesn’t Provide Insurance?

Whilst most dealerships cover test drives, there are some cases where you might need to arrange your own insurance. This is more common for high-performance or luxury vehicles, where the dealership may require you to have your own cover in place.

Options If You Need Your Own Insurance

• Temporary car insurance: You can arrange a short-term insurance policy to cover the test drive.
• Driving other cars (DOC) cover: Some comprehensive car insurance policies include a "Driving Other Cars" (DOC) extension, but this often provides third-party only cover and may not be available to all drivers.
• Named driver on the dealership’s policy: In some cases, the dealership may allow you to be temporarily added to their insurance.

What to Check Before Taking a Test Drive

Before you take the car for a drive, it’s worth asking the dealership a few key questions:

• Is the car insured for test drives? If so, what type of cover does it include?
• Who pays the excess in the event of an accident? Some policies require the driver to cover a portion of the costs.
• Are there any restrictions on where I can drive? Some test drives are limited to specific routes or areas.
• Do I need to sign any documents? Most dealerships could ask you to sign a waiver or agreement before handing over the keys.

What Happens If You Have an Accident During a Test Drive?

Accidents happen, and if you’re unlucky enough to be involved in one during a test drive, it’s important to know what to do.

• Stop the car and exchange details with any other parties involved.
• Inform the dealership as soon as possible.
• Check the insurance cover to see what costs you may be responsible for.
• Take photos of any damage and gather witness statements if possible.

The Final Analysis:

For most people, test driving a car at a dealership won’t require arranging additional insurance, as dealerships usually have cover in place. However, it’s always worth checking the details, especially if you’re looking at a high-value or specialist vehicle.

If you’re required to arrange your own cover, temporary insurance could be an option. Click below to find out more about short-term policies for test drives.