During a test drive, what should a dealer do to verify insurance coverage?

• A. Assume coverage exists without verification.
• B. Verify the dealer's insurance coverage for the test-drive scenario.
• C. Require the buyer to provide proof of own auto policy before a test drive.
• D. Require no insurance verification.

Answer: (B)

Before a test drive, the dealer must verify that the dealership’s insurance covers that specific activity. Checking the policy confirms the vehicle, the driver, and the test-drive period are all within what the insurer allows. This protects the dealer from liability or damage that wouldn’t be covered if something goes wrong, and it helps ensure the buyer isn’t unknowingly driving without appropriate coverage. If the policy doesn’t automatically include test drives or permissive drivers, the dealer should arrange temporary or add-on coverage or require proof of the buyer’s own policy that explicitly covers test drives. Relying on assumption or on the buyer’s coverage alone creates unnecessary risk.