In our previous blog Unaccompanied Test Drivers we discussed that insurance companies do allow unaccompanied test drives as long as certain requirements are followed by the dealership. In this blog we discuss Overnight Test Drives.
So are they allowed? To answer this question I went to several different garage underwriters to get their response to the question. Some said 100% NO, while others said YES as long as the dealership has a copy of their drivers license and proof of insurance. What this means to the dealership is the dealer needs to contact the agent that wrote the policy and find out what are the conditions to the policy. Every policy issued by the insurance carrier comes with Terms and Conditions that the agent must disclose and the dealership must follow in order for the policy to pay claims in case of an accident.
The underwriters that said 100% NO on overnight test drives generally insure smaller dealerships and new ventures. These dealerships usually have little inventory, less than ten vehicles on lot, and maintain the state requirement for insurance.
The underwriters that said YES tend to work on larger lots with higher limits of insurance. These dealerships have been in business for a longer period of time and maintain a larger amount of inventory.
Personally, I have taken a vehicle for an overnight test drive. This dealer was a Franchised Dealership and they knew that I owned an insurance agency. They did ask for a copy of my drivers license and proof of insurance before we left the lot.
Knowing if you can allow a customer to take a vehicle overnight is a discussion you should have with your agent before allowing your customer to take the vehicle. Our job is to know how the policy works and what you are allowed to do and not do with the inventory.
