Who is responsible for paying for the car crash compensation during a test drive accident?

試車時炒車,邊個賠償?

A rare car accident occurred in Kowloon Bay last week. A potential buyer met up with the car owner  for a test drive. At first, the driving was nothing out of the ordinary. Then, the driver (i.e. buyer) suddenly lost control of the car when turning and crashed into road signs, railings, and five motorcycles parked on the side of the road. The vehicle turned over completely at the end. Fortunately, both the driver and the owner climbed out of the car uninjured. However, the total compensation for the five damaged motorcycles exceeded HK$100,000.

How to ensure your own financial safety when letting a third party test your car?

The first thing you need to do when someone is about to test drive your vehicle is to check whether or not they have a valid driver's license. The second is to look up your own car insurance policy to see if it covers anonymous driver driving your vehicle as car insurance in Hong Kong covers the policyholder but not the vehicle itself. If your plan doesn't cover anonymous drivers, you may not be compensated for your loss if they get into an accident while driving your car.

The best way to protect yourself is to have the buyer sign an agreement before test driving stating that they will be liable for compensation if an accident occurs during the test drive.

Finally, if the car is sold on consignment at a car dealer, it is also necessary to clarify the liability in the event of an accident. At the same time, it is recommended to keep the original insurance policy in effect until after the car is successfully sold.

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The above information is for reference only. Kwiksure takes no responsibility for the accuracy and timeliness of the information. For the coverage, mode of compensation, benefit limit and premium levels of any specific insurance plan, please refer to the relevant policy terms.