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My question involves an injury that occurred in the state of texas. My friend who got her licence recently wanted to buy a car. She does not have insurance. She went to Used car dealer to test drive. She took the car out and had an accident. It was her fault. Who will have to pay for the dmamges? Does the insurance of the delarship cover the accident? Please clarify
The dealer is fully insured for your friends mishap. :)
The dealers insurance is calling and harassing saying that in Texas the person at fault is liable for all the damages. they send a document to sign that she is uninsured motor and wanted her to sign that document.
Have a lawyer look at the document before doing anything. It just may be a document stating that your friend doesn't have insurance so the dealers insurance company will pay for the damages.
When you go to a car dealer and test drive a vehicle, the salesman asks to make a copy of your driver’s license. I have never seen a car dealer ask for a copy of an auto insurance policy. The reason is that the car dealer is required to have a “garage policy” on their fleet of vehicles that includes coverage for anyone who drives the vehicles with permission of the dealership. This coverage is for damage to the vehicle being driven, as well as liability coverage for damage caused to other people or property. If the test driver has an auto policy, there coverage pays for damages beyond what the dealer’s primary policy covers, but any reputable dealer would carry $1,000.000 or more for there protection, making the test drivers policy worthless.
Since the dealership is in the business of selling cars and in order to do so, customers must drive the cars to try them out, they are provided with coverage as “insureds” on the dealership’s policy.