What happens if a customer damages a car during a test drive? Learn which insurance policies may apply, who could be responsible for repair costs, and what independent auto dealers should do after an accident. Discover how garage liability insurance, dealer open lot coverage, and consistent test-drive procedures can help protect your dealership from unexpected financial losses.

Car dealerships face a variety of liability risks involving customers, employees, test drives, vehicle inventory, property conditions, and daily operations. This guide explains how dealers can reduce liability risks by maintaining a safe dealership lot, establishing test drive procedures, securing inventory, training employees, documenting incidents, controlling access to hazardous areas, and maintaining appropriate commercial insurance coverage.