Demonstration vehicle insurance covers declared dealer stock or demonstrators used to let prospective buyers experience a vehicle. It may cover dealership staff and approved prospective buyers, but the rules for accompaniment, driver age, licence, radius and use must be clear.
A prospective buyer with a verified licence misjudges a turn while a salesperson accompanies the drive and damages the demonstrator and a boundary wall.
How cover may respond: The motor-trade road-risk section may pay for vehicle damage and third-party liability, less the applicable inexperienced-driver or test-drive excess.
Important: The dealership must show that its prescribed test-drive procedure was followed.
Tell us what vehicles you handle, where they are kept and how they are used. A specialist can compare suitable terms and explain the important conditions before you bind cover.
Start my quotationThis is a general explanation, not advice or a policy contract. Cover is subject to the insurer’s schedule, wording, limits, excesses and conditions.