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  1. #1
    Join Date
    Jul 2010
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    5

    Default Insurance Coverage for an Accident During a Test Drive

    My question involves insurance law for the state of: NJ

    Hi guys,

    I had a test drive accident and I have no insurance because I don't have a car before. I am driving a 2008 milan and hitting the front of a lincoln. The brake is so soft that I hit the lincoln. The lincoln has a small pit and the milan just has one scratch(very light). The dealer is called malouf. They called the police and the police did not give me a ticket but say I have to negotiate with the dealer for the repair. But the dealer did not allow me to repair myself and they charge me $1000 to repair the car. Also, they want me to pay quickly.

    My question is if I found their price is unreasonable what can I do and how can I argue?

    I am looking forward to your reply.

    Thanks

  2. #2
    Join Date
    Jan 2006
    Posts
    27,025

    Default Re: Test Drive Accident Help(Urgent)

    Quote Quoting dukeforever
    View Post

    My question is if I found their price is unreasonable what can I do and how can I argue?
    s
    it's not a matter of whether you find the price unreasonable or not. It is a matter of what the repair cost to be repaired. If a typical shop would repair the vehicle for less and you can obtain proof of that, you offer to pay that. If they want more, you can let them sue you where you would bring your evidence that the dealer simply claimed the damage was more costly than it really was. The judge will decide what you owe.

  3. #3
    Join Date
    Jul 2010
    Posts
    5

    Default Re: Test Drive Accident Help(Urgent)

    Thanks for your reply. They didn't allow me to repair but they want to repair themselves. How can I get the proof of the repair cost? Could I bring expert personel to reevaluate the cost of the repairment? Thanks.

  4. #4
    Join Date
    Jan 2006
    Posts
    27,025

    Default Re: Test Drive Accident Help(Urgent)

    about the best you can do is take pics and go to another shop and ask for estimates based on what you can provide to them.

  5. #5
    Join Date
    Jul 2010
    Posts
    5

    Default Re: Test Drive Accident Help(Urgent)

    Sure. I have the pics of both cars. It's very clear. Could I ask the dealer that I want to postpone the payment and reevaluate? Because the police did not give me anything and did not say when I have to pay. Thanks.

  6. #6
    Join Date
    Jan 2006
    Posts
    27,025

    Default Re: Test Drive Accident Help(Urgent)

    the police cannot make you pay. Only a court can actually order you to pay.

    you can tell the dealer anything you want. If you truly believe they are charging too much, that is what I would tell them. Maybe they will negotiate without you even getting any estimates.

    If you do not pay, the dealership's only option is to sue you. If they do that, you will have time to obtain your other estimates.

    There is a great chance you would have to pay legal fees though if it does go to court.

  7. #7
    Join Date
    Jul 2010
    Posts
    5

    Default Re: Test Drive Accident Help(Urgent)

    Thanks for your reply. I did not want to go to court but looks like the dealer wants to bite me this time.

    I will update the progress of this incident. Thanks again.

  8. #8
    Join Date
    Jul 2010
    Posts
    5

    Default Re: Test Drive Accident Help(Urgent)

    Dear all,

    I just check the NJ DMV about the New and used car dealerships and leasing licenses. It seems that the dealer is required to maintain insurance for cars on their lot that I should not have to pay. The details is like the following:

    http://www.state.nj.us/mvcbiz/Busine...es/UsedNew.htm

    Insurance

    * A Certificate of Insurance reflecting liability coverage in the amount of $100,000 - $250,000 for bodily injury and $25,000 for property damage is required at the time of approval and must specify the total number of plates covered by the policy.
    a. provide evidence that motor vehicle held for resale are covered by a blanket liability insurance policy

    Does it make sense if I argue I should not have to pay? Many thanks.

  9. #9
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    73,019

    Default Re: Test Drive Accident Help(Urgent)

    Even assuming that the insurance would cover the vehicle damage, they may well have a $1,000 deductible.

    Also, if the accident is going to show up in CarFax, the resale value of the car may have dropped.

  10. #10
    Join Date
    Jan 2006
    Posts
    27,025

    Default Re: Test Drive Accident Help(Urgent)

    Quote Quoting dukeforever
    View Post
    Dear all,

    I just check the NJ DMV about the New and used car dealerships and leasing licenses. It seems that the dealer is required to maintain insurance for cars on their lot that I should not have to pay. The details is like the following:

    http://www.state.nj.us/mvcbiz/Busine...es/UsedNew.htm

    Insurance

    * A Certificate of Insurance reflecting liability coverage in the amount of $100,000 - $250,000 for bodily injury and $25,000 for property damage is required at the time of approval and must specify the total number of plates covered by the policy.
    a. provide evidence that motor vehicle held for resale are covered by a blanket liability insurance policy

    Does it make sense if I argue I should not have to pay? Many thanks.
    that is liability insurance, not collision or comprehensive coverage. That means their insurance will cover the damage to the OTHER car, not the one you were driving.

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