What Happens If a Dealership Wrecks Your Car?

March 14, 2024

Ideally, you will be able to take home a car that has been properly maintained by your dealership. While this happens most of the time, sometimes, things go wrong with a vehicle on the lot that could lead to serious accidents and injuries. When this occurs, you may need to file a lawsuit against the dealer. This is a much different process than going up against an individual’s auto insurance policy and requires a New Jersey car accident lawyer to protect your rights.

Will a Dealership’s Insurance Cover an Accident During a Test Drive?

Car dealerships often carry multiple vehicles on their lots and, as a result, have to have a certain level of liability coverage in case a vehicle is stolen or damaged on the lot. It’s also important for a dealership to have collision insurance in case a test driver damages one of the cars on the lot.

In most states, a car dealership’s insurance will only pay for an accident that occurred while the dealership still owned the vehicle in question. Once the dealer sells or otherwise disposes of a vehicle, it will likely be covered by its own collision and general liability policies.

However, there are some cases in which a dealership will fail to disclose that a vehicle had previously been in a crash or had frame damage. This kind of misrepresentation can cost you money because it reduces a vehicle’s resale value due to its diminished structural integrity. If you find out that a dealership has sold a car to you with previous damage, contact an experienced auto fraud attorney immediately.


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