Question Regarding Insurance For Test Drives

fleetingmind

So I’m getting a new car from my dad and have a few questions which I hope someone can answer: -

I still have my old car and am trying to sell it but reluctant to pay another month of tax and insurance as we won't use it. We won’t need to drive it. I assume I have to keep it taxed for when someone wants to test drive it?
Will I need to keep it insured? (Obviously a risk to it being nicked off my drive)?
The potential new owner will want to test drive it so what insurance covers this? My understanding was their insurance would cover it for third party what if they crash it?

Was going to ask about the road tax but it is still unclear. I assume he should make it as SORN today (It’s sitting on his drive) then date the transfer form as the 1/2/2014? What will I need to tax it on the 1st – just the green slip?

Spicy_McHaggis

It needs to be tax and insured to be used on a road.

If it's taxed it must be insured.

If your prospective buyer crashes on third party cover you'd have to try and recover your loss from them or write it off. Only way would be to name them on your policy or change it to any licenced driver.

fleetingmind

Spicy_McHaggis wrote: »

It needs to be tax and insured to be used on a road.

If it's taxed it must be insured.

If your prospective buyer crashes on third party cover you'd have to try and recover your loss from them or write it off. Only way would be to name them on your policy or change it to any licenced driver.

That's really useful thanks. No buyer will buy without a test drive so I will keep the tax and insurance on it for another month.

TadleyBaggie

Don't assume that the test driver is insured just because they have existing insurance. Many policies no longer have 3rd party cover for driving other vehicles.

InsideInsurance

Remember however that if the insurance is still running on the old car you cannot use your NCD on another policy. Depending on how many years NCD you have then one option is to transfer the cover to the new car and add the old car back on as a temporary additional vehicle.

Aretnap

fleetingmind wrote: »

The potential new owner will want to test drive it so what insurance covers this? My understanding was their insurance would cover it for third party what if they crash it?

His own policy might give him third party cover to drive it - but not all policies do. And of those that do cover him to drive other cars, some will require the other cars to be covered by a policy of its own as well. Ideally you should ask to see his insurance certificate rather than just assuming or taking his word for it because if he doesn't have at least third party insurance (a) you could be prosecuted for permitting him to drive without insurance, which carries the same penalty as driving without insurance yourself and (b) your own insurer could end up being liable for compensating third parties, and could then pursue you personally for those costs (potentially a very large amount of money if he caused a serious accident).

In any event his own policy won't (with very rare exceptions) provide any cover for your car itself so if drives it into a lamppost you'll be left trying to get the repair costs out of him, or else paying for them yourself. If that's not a risk you're willing to take you could ask your own insurer if they'll give you an any driver extension to your own policy for a few weeks (they might not, but if you don't ask you don't get), or you could look into getting a 24 hour policy to cover the test drive (Google "day insurance") and possibly ask him to make a contribution to the price - and that will at least help sort out those who are serious about buying the car from the tyre kickers.

Spicy_McHaggis

Aretnap wrote: »

His own policy might give him third party cover to drive it - but not all policies do. And of those that do cover him to drive other cars, some will require the other cars to be covered by a policy of its own as well. Ideally you should ask to see his insurance certificate rather than just assuming or taking his word for it because if he doesn't have at least third party insurance (a) you could be prosecuted for permitting him to drive without insurance, which carries the same penalty as driving without insurance yourself and (b) your own insurer could end up being liable for compensating third parties, and could then pursue you personally for those costs (potentially a very large amount of money if he caused a serious accident).

In any event his own policy won't (with very rare exceptions) provide any cover for your car itself so if drives it into a lamppost you'll be left trying to get the repair costs out of him, or else paying for them yourself. If that's not a risk you're willing to take you could ask your own insurer if they'll give you an any driver extension to your own policy for a few weeks (they might not, but if you don't ask you don't get), or you could look into getting a 24 hour policy to cover the test drive (Google "day insurance") and possibly ask him to make a contribution to the price - and that will at least help sort out those who are serious about buying the car from the tyre kickers.

I'd assume the seller would go with the buyer on a test drive. So if the buyer is uninsured the the seller isn't permitting no insurance. They are using it without. Just saying.

fleetingmind

Thanks for all of the replies. Really useful.

Will definitely get to see insurance details before a test drive.

Spicy_McHaggis

fleetingmind wrote: »

Thanks for all of the replies. Really useful.

Will definitely get to see insurance details before a test drive.

Best to check the policy is still live too.

EdGasket

If you are unsure/reluctant to allow a test drive then offer to take the person out for a drive but only with yourself driving. I have bought cars under those conditions; it isn't absolutely necessary for the buyer to test drive it. Just explain that your car won't be covered if they crash. If they aren't reasonable then they probably wouldn't actually buy it anyway.

maninthestreet

if you do allow a test drive with the prospective buyer driving, under no circumstances get out of the car unless you have the car keys on your person....