Last year, while waiting for their car to be delivered, an Ontario couple decided to take a couple of test drives, and during one of them, they were involved in a hit-and-run. The dealership told them that the waiver they had signed made them responsible for the damages to the vehicle even though they didn’t own the car and weren’t responsible for the accident.
During an interview on CTV News, HSH Partner and personal injury lawyer David Levy shed light on a concerning trend of dealerships asking consumers to sign waivers before going on standard test drives. These waivers hold individuals accountable for damage to a vehicle, rather than the dealership (or its insurer) who would otherwise bear this responsibility. He advised that while dealerships are obligated to carry insurance on their vehicles, they prefer not to use it. Even minor accidents can trigger deductible payments and impact future premiums by creating a claims history that can lead to additional costs. Consumers should be mindful that dealerships are attempting to transfer this risk to them through these waivers. David emphasized the importance of carefully reading these waivers instead of simply signing them mechanically, as people often do in such situations. Refer to David’s blog post for more in-depth information on this topic.
To access the full article from CTV and watch the interview, please click here.
