Who Pays for Accidents at Car Dealerships?

In a typical car accident, it’s pretty clear who pays for damages. New York’s no-fault insurance laws are specific and reasonably easy to understand. But what if you’re test-driving a vehicle at a dealership, or if a dealership employee is driving your car while it’s in for repairs?

Test Driving a Dealer-Owned Vehicle

Dealerships carry insurance to cover the cars on their lot. If you should get into a crash while on a test drive, their insurance policy should pay for any injuries. You may be responsible for a deductible amount, and may choose to make a claim with your insurance company to cover that figure.

If your injuries are severe, you may exceed the no-fault coverage limit on the dealer’s policy. When this happens, you may have to prove that someone else’s negligence caused your injuries in order to collect the full amount of your losses.

In some instances, the other driver may be at fault. In others, the dealership’s negligence may have caused your injuries. For example, if the car you were driving had a mechanical problem that caused the crash, the dealership would be liable for your losses. Having an experienced auto accident lawyer at your side can be crucial in helping you navigate the complexities of such a case.

Sometimes, a dealership may ask, or even require, that you sign a liability waiver before taking a test drive. If you sign such a document, you are bound by its conditions. Often in such a case, you’ll need to make a claim against your own automobile insurance if you have a crash.

Your Car at the Dealership

If a mechanic or other dealership representative gets into a wreck in your car, the dealership’s insurance is fully responsible for damages and liability. You should not make a claim on your policy, because you were not driving the car at the time of the accident.

Any damages beyond the no-fault limits of the dealership and the other driver’s policies are to be settled between their respective insurance companies. You would have zero liability in such an instance.