Buying a new car is supposed to be exciting. But what happens when your test drive takes a sudden turn — literally — and ends in a crash? Whether it’s a fender bender in a dealership lot or a serious collision on a public road, few people know what their legal responsibilities are in these situations. In Massachusetts, liability after a test-drive accident depends on a combination of insurance coverage, negligence, and dealership policies — and it’s rarely straightforward.
Who’s Responsible for a Test Drive Accident in Massachusetts?
When a crash happens during a test drive, one of the first questions everyone asks is, “Who pays for the damage?” In most cases, liability is determined by fault — meaning the person who caused the accident is legally responsible for the resulting damages. Under Massachusetts’ fault-based insurance system, this involves examining who acted negligently, whether it was the driver, another motorist, or even the dealership itself.
Dealerships typically carry garage liability insurance, which covers damage to vehicles in their possession, including those being test-driven. However, this coverage can vary widely. If you, as the test driver, were negligent — for instance, by running a red light — the dealership’s insurer may seek reimbursement from your own auto insurance policy.
In Massachusetts, even though test drives often occur under the dealership’s insurance umbrella, drivers may still be partially responsible for damages or injuries, especially if they carry their own personal auto policy.
How Massachusetts Insurance Coverage Applies During a Test Drive
Massachusetts requires all vehicles to be insured under Massachusetts General Laws Chapter 90, Section 34A, which mandates minimum liability coverage for bodily injury and property damage.
However, how insurance applies after a test-drive crash depends on three main factors:
- Ownership of the Vehicle – The dealership technically owns the car, so their policy usually covers initial damages.
- Permission and Negligence – If the test driver had permission but acted negligently, their own insurance may still be pursued for reimbursement.
- Extent of Damage or Injury – If another driver or pedestrian was hurt, liability might extend beyond the dealership’s coverage limits.
In practice, this means you might not automatically be off the hook — even if the car wasn’t yours.
When the Dealership’s Insurance Pays
Most Massachusetts dealerships maintain a garage keeper’s policy or comprehensive commercial auto insurance. These policies cover:
- Physical damage to dealership-owned vehicles.
- Liability for accidents caused by customers during test drives (within limits).
- Bodily injury or property damage to third parties.
If you were test-driving the car with a salesperson’s permission, this insurance generally steps in first. But insurers may later pursue subrogation, seeking reimbursement from your insurance provider or, in rare cases, from you directly if your negligence was egregious — such as driving under the influence or speeding excessively.
When Your Own Auto Insurance Comes Into Play
If you already have your own car insurance, it can act as secondary coverage. Your Massachusetts personal auto policy (MAP) may include provisions for “temporary substitute” or “non-owned” vehicles. In a test-drive context, this could provide additional protection if the dealership’s policy doesn’t fully cover damages.
However, if you were uninsured at the time, you might be personally liable. Massachusetts law requires all drivers to carry minimum coverage, and driving without it can result in fines, suspension, and financial responsibility for the accident’s costs.
What If Another Driver Caused the Crash?
Test drives don’t always end badly because of the person behind the wheel. If another driver ran a red light or rear-ended the vehicle during your test drive, that driver’s insurance would generally be responsible.
Still, complications arise when fault is shared. Under Massachusetts’ modified comparative negligence rule (Massachusetts General Laws Chapter 231, Section 85), if you are found less than 51% at fault, you can recover damages — but your compensation is reduced by your percentage of fault.
For example, if you were deemed 30% at fault and the damage totaled $10,000, you could still recover $7,000 from the other driver’s insurer.
Steps to Take Immediately After a Test Drive Crash
Even though the vehicle isn’t yours, you must follow the same steps as any other accident:
1. Call 911 immediately. Even minor collisions should be reported if there’s injury or significant damage.
2. Exchange information. Get the dealership’s contact details, insurance policy number, and the salesperson’s name, as well as information from any other involved drivers.
3. Take photos and document everything. Capture vehicle damage, street conditions, and traffic signs.
4. Notify your insurance company. Your provider may need to coordinate with the dealership’s insurer.
5. Contact an attorney. If there’s injury or significant damage, a lawyer can help determine liability and ensure your rights are protected.
Neglecting to report the accident properly or assuming the dealership will “handle it” can backfire. In some cases, the dealership might initially pay for repairs but later file a claim against you.
Common Scenarios That Affect Liability in Massachusetts
Accidents during test drives can happen in many different ways, and liability shifts depending on the circumstances. Consider the following examples:
Scenario 1: You’re test-driving a new car when another vehicle sideswipes you. The other driver is 100% at fault, and their insurer should pay.
Scenario 2: You run a stop sign during your test drive and cause a collision. The dealership’s insurance may cover initial damages, but your own insurer could be responsible for reimbursement.
Scenario 3: The car malfunctions — say, the brakes fail — leading to a crash. The dealership or manufacturer could be liable under product liability law if it’s proven the defect caused the accident.
In each case, the details matter: who had control, who acted negligently, and what type of insurance coverage applies.
Understanding Comparative Fault and Damages
Massachusetts’ comparative fault system doesn’t just determine who’s to blame — it affects how much you can recover. For instance, if a test drive accident results in injuries, medical expenses, or lost wages, your percentage of fault directly reduces your potential recovery.
If you’re injured, you may be able to seek compensation for:
- Medical bills and rehabilitation costs
- Lost income from time off work
- Pain and suffering
- Vehicle repair or replacement costs
These claims often require coordination between multiple insurers, especially when a dealership and a third-party driver are both involved.
Statistics on Test Drive and Dealership Accidents
While test drive accidents are relatively rare, they do happen. A National Highway Traffic Safety Administration (NHTSA) report found that approximately 20% of dealership-related accidents occur during customer test drives. In Massachusetts, densely populated cities like Boston and Worcester see a higher concentration of such incidents due to traffic congestion and limited maneuvering space.
Insurance industry data also shows that test drive claims often involve property damage exceeding $10,000 — underscoring the financial importance of clear liability and insurance coordination.
What If the Accident Causes Injury or Death?
In serious test drive accidents resulting in bodily harm or fatality, legal implications become far more complex. Victims may have grounds to file a personal injury or wrongful death claim, depending on the circumstances.
If the test driver was at fault, they (and potentially their insurer) could face civil liability. Conversely, if a defective vehicle or mechanical failure caused the crash, liability might shift to the dealership or manufacturer under product liability laws. In practice, cases like these require investigation into vehicle maintenance records, driver behavior, and dealership protocols.
When to Contact a Massachusetts Car Accident Attorney
Navigating the legal aftermath of a test-drive accident can be overwhelming. Between dealership insurance, personal auto policies, and state comparative negligence laws, even small mistakes can lead to major financial consequences. An experienced Massachusetts car accident lawyer can help determine liability, negotiate with insurers, and ensure fair compensation for injuries or damages.
Attorneys can also help protect your record. Even if you’re partially at fault, a lawyer may be able to limit your liability exposure or prevent subrogation claims from impacting your personal finances.
Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away
If you were involved in a car accident during a test drive in Massachusetts, you don’t have to face the confusion alone. Whether you’re being blamed for damages, struggling with an insurance dispute, or dealing with injuries, our team understands how to protect your rights. At Brandon J. Broderick, Attorney at Law, we help clients across Massachusetts navigate complex car accident claims involving dealerships, insurers, and comparative fault laws. We’ll review your case, explain your options, and fight for the compensation you deserve.