Dealership Loaner Vehicles and Accident Liability: What You Need to Know

Accidents involving loaner vehicles provided by dealerships can be complex, with various insurance and legal considerations to navigate. This article provides an in-depth look at how dealer loaner vehicle accidents are handled and what steps you should take if you are involved in such an incident.

The Role of Dealership Insurance

In the event of an accident while driving a loaner vehicle from a dealership, the dealers' insurance can often come into play. Here are some key considerations and steps to take if such an incident occurs.

Insurance Coverage

Loaner vehicles are typically covered by the dealership's insurance policy. This means that if you are at fault in an accident, the dealership's insurance may cover damages to the other vehicle and any injuries involved, up to the limits of their policy. However, it's important to note that this coverage acts as secondary insurance, stepping in only after your personal insurance has been applied.

Your Personal Auto Insurance Policy

When driving a loaner vehicle, your personal auto insurance policy is the primary source of coverage. Therefore, it's crucial to check your policy to understand the coverage extent, especially for driving vehicles not owned by you. Reviewing your policy can help you avoid unexpected financial burdens.

Reporting the Accident

It's essential to report the accident to both your insurance company and the dealership as soon as possible. Providing the police report number, your own insurance information, and the other person's insurance details (if available) can simplify the claims process.

Dealership Policies and Agreements

When you take a loaner car, you may sign an agreement that outlines responsibilities in case of an accident. Review this agreement carefully as it may specify certain conditions or excess charges that you could be responsible for. Understanding the specific terms and conditions of the loaner agreement can prevent misunderstandings and financial surprises.

Collision Damage Waivers (CDW)

Even if a collision damage waiver (CDW) is required, it's important to note that a CDW is not insurance. It merely waives your responsibility for damages to the loaner vehicle in certain circumstances. Verify the specific terms of the CDW, as it may offer limited coverage or no coverage at all.

Consulting Your Insurance Provider and Seeking Legal Advice

Given the complexity of dealership loaner vehicle accidents, it's often wise to consult with your insurance provider to understand your coverage when driving a loaner car. If there are significant damages or injuries, or if there is a dispute about the accident, consulting with a personal injury lawyer can provide valuable guidance and help navigate any claims or legal proceedings.

Key Takeaways

Dealership insurance can cover damages up to the limits of their policy. Your personal auto insurance is the primary source of coverage. Report the accident to both your insurance company and the dealership promptly. Review the terms and conditions of the loaner vehicle agreement. Seek legal advice if there are significant damages or injuries.

Understanding the intricacies of dealership loaner vehicle accidents can help you avoid financial surprises and legal complications. Always ensure you are adequately informed about the insurance implications when driving a loaner vehicle.