# Test Drive Waiver?



## JrodVW (Mar 9, 2001)

The owner of my business called and asked if I thought it was a good idea to come up with a waiver for people who test drive cars to both accept liability for damage and in whatever way possible protect us and the business. 
What would be standard wording for such a paragraph?


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## N_Dub04Gli (Aug 14, 2007)

*Re: Test Drive Waiver? (JrodVW)*

To my knowledge, the only way you can attempt something like that would be to put the customers out on state paperwork. In PA we use a temp permit which allows a customer to use our registrations on our vehicles covered under their insurance policy. I don't know how any other form of contract could really bind the customer to being liable for anything that would happen. I am sure that there is some sort of consumer protection law that puts liability on the dealer and their insurance. Not really sure but this would be my thought on the matter


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## Goldar's VW (Sep 5, 2007)

*Re: Test Drive Waiver? (JrodVW)*

As a prospective customer, I know exactly what my wording would be to you if I were asked to sign such a document to test drive.


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## N_Dub04Gli (Aug 14, 2007)

*Re: Test Drive Waiver? (Goldar's VW)*


_Quote, originally posted by *Goldar’s VW* »_As a prospective customer, I know exactly what my wording would be to you if I were asked to sign such a document to test drive. 


lol







I am sure that a lot of customers would have something to say about it. I don't think it would be an easy company policy to be enforced... no matter how you word it


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## JrodVW (Mar 9, 2001)

*Re: Test Drive Waiver? (N_Dub04Gli)*


_Quote, originally posted by *N_Dub04Gli* »_
lol







I am sure that a lot of customers would have something to say about it. I don't think it would be an easy company policy to be enforced... no matter how you word it









Since when did customers EVER read ANYTHING that they sign? 
If someone tells me off then they aren't a serious buyer and I don't want them touching my inventory anyways.


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## TRegKnowItAll (Oct 2, 2003)

*Re: Test Drive Waiver? (Goldar's VW)*


_Quote, originally posted by *Goldar’s VW* »_As a prospective customer, I know exactly what my wording would be to you if I were asked to sign such a document to test drive. 



So you walk into my store. Drive one of my cars and damage it and you think your in no way responsible.
Remind me to never let you drive anything on my lot.
Contrary to popular belief, no one is entitled to a test drive.


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## JLoh (Dec 23, 2004)

*Re: Test Drive Waiver? (TRegKnowItAll)*

We have what we call a "BCA" or borrowed car agreement. I would imagine it would be worded pretty similar to that.


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## JrodVW (Mar 9, 2001)

*Re: Test Drive Waiver? (JLoh)*


_Quote, originally posted by *JLoh* »_We have what we call a "BCA" or borrowed car agreement. I would imagine it would be worded pretty similar to that.

You have PM with my fax # http://****************.com/smile/emthup.gif


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## m_parallel (Aug 23, 2006)

*Re: Test Drive Waiver? (JrodVW)*

Your local dealer association should have a form.


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## Jetdrivr (Oct 28, 2004)

*Re: Test Drive Waiver? (sethgood)*

My legal department drafted a "PROOF OF INSURANCE AND ACKNOWLEDGEMENT OF LIABILITY FOR VEHICLE DEMONSTRATION" form which everyone who requests a test drive must sign. My salespeople then must verify the validity of their insurance (view their insurance card) and inspect their valid driver's license, both of which are photocopied and attached to the signed form BEFORE the test drive commences. 
It has kept us out of a few sticky legal battles, and eliminates B.S'ers who have no business test driving anything. 
The important text reads as follows:
*"Therefore, if you as the customer, should damage a vehicle belonging to [MY DEALERSHIP], then by signing below, you acknowledge that you and your insurance coverage will be responsible for the damage done to any [MY DEALERSHIP] vehicle, and to any other party or parties' vehicle that you have injured or damaged through your negligence.
I have provided a copy of my current insurance card and my driver's license to [MY DEALERSHIP]."*
Illinois is a mandatory insurance state (not sure about yours) and everyone behind the wheel of a vehicle must have insurance. This just keeps everyone on the "up and up" so to speak.
We are also a powersports dealership and our insurance carrier specifically prohibits test drives on any motorcycles, scooters, etc. Those who want to test drive a motorcycle may do so after signing a Purchase Order and providing the funds. Then it's the customers problem if they wreck. If the customer then decides he doesn't want the bike, we happily accept it back for a full refund.
PM me with your name and fax # and I'll be happy to send you a copy of the form we use.


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## JrodVW (Mar 9, 2001)

*Re: Test Drive Waiver? (Jetdrivr)*

PM sent; this has been a very informative post.


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## JrodVW (Mar 9, 2001)

*Re: Test Drive Waiver? (JrodVW)*

Thanks to all that have helped. Jet; I received your fax just now. 
I'll make state specific changes; but this sounds like exactly what I need.


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## The Other White Meat (Apr 17, 2003)

*Re: Test Drive Waiver? (JrodVW)*

This is really something you'll want to run past a local attorney. For starters, the "you and your insurance company" language is problematic, in that in every state I know of, the insurance holder cannot unilaterally bind his carrier to do anything not required by his insurance contract. Therefore, if his policy doesn't cover rentals/test driven cars, his having a valid insurance card is meaningless, as they will not be paying for anything no matter what the insured signs.
Of course, there are a myriad of other problems, which is why it pays to speak to someone local who can guide you through them. (I can't even begin to describe how many cases I get where people literally copied a form/contract from somewhere, not giving any mind to whether it made sense, much less was legal in their state.)


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## JrodVW (Mar 9, 2001)

*Re: Test Drive Waiver? (The Other White Meat)*


_Quote, originally posted by *The Other White Meat* »_This is really something you'll want to run past a local attorney. For starters, the "you and your insurance company" language is problematic, in that in every state I know of, the insurance holder cannot unilaterally bind his carrier to do anything not required by his insurance contract. Therefore, if his policy doesn't cover rentals/test driven cars, his having a valid insurance card is meaningless, as they will not be paying for anything no matter what the insured signs.
Of course, there are a myriad of other problems, which is why it pays to speak to someone local who can guide you through them. (I can't even begin to describe how many cases I get where people literally copied a form/contract from somewhere, not giving any mind to whether it made sense, much less was legal in their state.)


That is a VERY valid point; and something we plan to do. Still; the help of others in this thread has provided us direction and 2 people now have faxed me what they use and have been very generous with their assistance. http://****************.com/smile/emthup.gif


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## Jetdrivr (Oct 28, 2004)

*Re: Test Drive Waiver? (The Other White Meat)*


_Quote, originally posted by *The Other White Meat* »_This is really something you'll want to run past a local attorney. For starters, the "you and your insurance company" language is problematic, in that in every state I know of, the insurance holder cannot unilaterally bind his carrier to do anything not required by his insurance contract. Therefore, if his policy doesn't cover rentals/test driven cars, his having a valid insurance card is meaningless, as they will not be paying for anything no matter what the insured signs.


This is very true although most insurance companies cover when their insured is driving a "like kind" vehicle. Of course, the most important part of our document is that it has the customer acknowledging responsibility by placing their signature on the form. It is irrelevant to me whether their insurance carrier will protect them. I have plenty of insurance to cover any situation, but I'd rather have the opportunity to put *their* insurance to good use before my insurance gets involved. That keeps *MY* loss ratios down.
Finally, it gives me somebody to sue should the test driver damage my vehicle and refuse to make a claim with his insurance or refuse to pay for my damages. 
We've used our form twice in a court of law and each time we received a judgment for our losses. 
I'd say it's a pretty effective document and our legal department agrees. http://****************.com/smile/emthup.gif 
Naturally, what works in my state may not work in yours. Before you implement any sort of documentation with the specific intent of thrusting responsibility onto another party, it is best to consult with your lawyers so that the language is correct for where you do business.



_Modified by Jetdrivr at 6:51 AM 10-4-2007_


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## The Other White Meat (Apr 17, 2003)

*Re: Test Drive Waiver? (Jetdrivr)*

I have no problem with making the driver _personally_ responsible (and in fact, would highly recommend such a clause. Let the driver fight his insurance company, not you!) Problems arise in certain states where such clauses have been found to go against public policy (I guess the insurance lobby is stronger in some states than others), or where, contrary to some opinion, the policy doesn't cover anything but the scheduled car. (Shocking, but there _are_ policies that don't cover anything but the car they quote you on - not rentals, not test drives, not friend's cars, nada).
On the other hand, if the test driver is the cause of the accident, legally speaking, they're going to be responsible for paying damages whether they sign a form or not - the form just speeds things up dramatically


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