Test Driving Accident

September 9, 2016

After repairing our insured's vehicle, the mechanic drove the car around the block for a test drive. While test driving, the mechanic caused an accident and injuries to a third party. Would the personal auto policy apply in this instance?

Indiana Subscriber

The standard PAP excludes liability coverage for any insured while employed in the business of repairing or servicing vehicles designed for use on public highways. This includes road testing and delivery. The mechanic is considered to be an insured since that category includes any person using the named insured's covered auto, so the exclusion applies to him. The named insured would have coverage since that exclusion does not apply to the ownership of the covered auto by the named insured.

You might want to check with the mechanic about his garage liability coverage to see if coverage is available for your insured since, as the owner of the car involved in the accident, your insured will no doubt be brought into any claim or lawsuit that arises.