Who's Liable for The Excess?

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networkn

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#208011 23-Jan-2017 10:15

Hi There!

We are selling my wifes car (2005 Subaru Impreza Wagon, 70K, Towbar, immaculate interior if anyone is interested).

Who is liable if whilst test driving it, a potential buyer, is in an accident that they caused?

Cheers

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#1707865 23-Jan-2017 10:19

Its a tough one, If they are uninsured it may be a civil matter.
I will never let someone drive a "valued" vehicle of mine unless im holding onto the money in my hands.
If they dont have the cash ready well, So be it.

Its just good judgement, Dont be a "cock" only asking for money before a drive only once they get there.
But for something like what your selling id just be cautious of who test drives it, Take photos of their licence and get their address.

This i usually apply to a performance vehicle that im selling due to the nature of the vehicle. Thrash my car = You own it.

SATTV

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#1707870 23-Jan-2017 10:21

Unfortunatly you are liable as it is your car.

You can try and recover the excess from the prospective buyer, you might have to go to small claims.

It is the same if you take your car to the mechanic and while they are taking the car on a test drive and have an accident.

I almost came undone when the mechanic got rear ended and I had no under 25's, he was 24 and 50 weeks old, we got away with it as the mechanic was not at fault.

John

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#1707873 23-Jan-2017 10:21

I think the driver would ultimately would be responsible, but claim through your insurance and they'll chase the drivers insurance company for payment etc - unless the driver is a nice guy/gal and just gets it all sorted on their side (and buys the car).

I refused to let anyone under 21 drive my Subaru GT wagon when I was selling it, didn't care if they had the cash or not, insurance was for 21+ drivers only.

Gavin / xpd / FastRaccoon / Geek of Coastguard New Zealand

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#1707876 23-Jan-2017 10:23

Heh, that reminds me. I once a near new S4 for a drive, legitimately interested in purchasing it. I wouldn't say I thrashed it, but I drove it like I owned it and was pretty keen on it, till the guy told me what he would offer as a trade to which I laughed. He then proceeded to pull an ipad from the back seat document holder and low and behold there were a bunch of driving stats on the screen. He made a very pointed comment about how the average speed was much faster than people who usually test drive cars.

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#1707881 23-Jan-2017 10:26

When I test cars I am usually driving like I normally do. Which is efficiantly. Had one I tried start to make a weird noise about 1000 off the redline. Guy claimed he had never heard it before. If I didnt drive like I normally did then that would have gone unnoticed till later on.

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#1707882 23-Jan-2017 10:27

Yeah, this isn't a performance vehicle and is under 10K and I think our excess is $250 or something. We get photos of the Drivers ID, but maybe we will ask them to bring proof of their address.

It's insured for what it's worth so if they crash it badly, I'd almost be better off :)

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#1707887 23-Jan-2017 10:29

networkn:

Heh, that reminds me. I once a near new S4 for a drive, legitimately interested in purchasing it. I wouldn't say I thrashed it, but I drove it like I owned it and was pretty keen on it, till the guy told me what he would offer as a trade to which I laughed. He then proceeded to pull an ipad from the back seat document holder and low and behold there were a bunch of driving stats on the screen. He made a very pointed comment about how the average speed was much faster than people who usually test drive cars.

haha, It was my little B5 S4 that i was super paranoid about letting people test drive, I only drove it with them in it till a 35 year old came to view it and buy it. Funny how he just looked at it for 5 minutes drove in it with me driving then decided it was for him. Unlike the crowds of 16-22 year olds looking at it. Usually get to the stage of viewing the car when they ask to drive it and i ask for proof of funds. They tend to leave after that line for wasting my time, Usually they are more angry than i am cause they couldn't joy ride my car for free.

Joy riders, No thanks.

I never had a computer logging stats like that, What model year was it?

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#1707894 23-Jan-2017 10:37

It's rare for me to drive a car I am not genuinely interested in owning.

Coil

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#1707904 23-Jan-2017 10:46

networkn:

It's rare for me to drive a car I am not genuinely interested in owning.

Yep as for most of us, I doubt you will have problems with selling your car, Not something kids or hoons would be looking to buy so you should be on the safe side.

Just cover yourself, ID, address, Contact number, Always go with them.

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#1707913 23-Jan-2017 11:02

Beware the under 25 driver. Most insurance policies have a standard exclusion for under 25 drivers, an inclusion for under 25s is optional - usually with a higher cost and a (much) increased excess.

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#1707930 23-Jan-2017 11:21

Fred99:

Beware the under 25 driver. Most insurance policies have a standard exclusion for under 25 drivers, an inclusion for under 25s is optional - usually with a higher cost and a (much) increased excess.

Yup already spoke to the insurance company. They have kindly offered to apply the lower excess for under 25's for a month.

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#1707931 23-Jan-2017 11:21

You own the car, you insured it, you allow its use. You are responsible, and for making sure the provisions of your insurance cover are complied with.

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#1707966 23-Jan-2017 12:01

networkn:

It's insured for what it's worth so if they crash it badly, I'd almost be better off :)

Then make dame sure of it

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#1707977 23-Jan-2017 12:08

A lot of sellers accompany people on their test drive.

I would do exactly that.

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#1707981 23-Jan-2017 12:15

xpd:

I think the driver would ultimately would be responsible, but claim through your insurance and they'll chase the drivers insurance company for payment etc - unless the driver is a nice guy/gal and just gets it all sorted on their side (and buys the car).

I refused to let anyone under 21 drive my Subaru GT wagon when I was selling it, didn't care if they had the cash or not, insurance was for 21+ drivers only.

Even if the 'driver' is insured, their cover doesn't extend to driving your car. NZ insurance companies wont chase theirs as their insurer has not indemnified them when driving another vehicle (Unlike the USA when auto policies often include coverage for driving other vehicles). This is why you also have to buy insurance when you rent a car in NZ.

Check your policy and find out who is allowed to drive the vehicle and what the excess tiers are. It's now very common to find policies that exclude all drivers under a certain age, or any person not named on the policy. If that were the case, your insurer is not going to care if someone damages your vehicle and they are not liable under the terms of your policy.

If the insurance excludes certain drivers, maybe look at changing the policy to allow all, but understand what the excesses are and ask the test driver to sign something agreeing to liability for the excess in the event of damage.

For the policy I have my car insured under I have excluded all drivers under 25 only, but there is an additional excess payable if I let someone else drive who isn't named on the policy and they have an accident. If I were to sell the car, I'd modify the policy so anyone could drive so at least I had coverage.

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