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Motorists are being urged to check their insurance arrangements carefully before getting behind the wheel of a newly purchased or test-drive vehicle.
The arrival of the new ’76’ registration plate this September is expected to bring a busy period for car dealerships across the UK, with many customers booking test drives and collecting newly purchased vehicles.
Industry figures from the Society of Motor Manufacturers and Traders (SMMT) suggest that around 75,000 new vehicles will leave UK dealerships this week alone, while total new-car sales are expected to surpass 300,000 by the end of September.
However, insurance specialists are warning that some drivers wrongly believe they are automatically covered when taking a test drive or collecting a new vehicle from a dealership.
Tom Warsop, a motor insurance expert at Covertime.com, said the introduction of a new registration plate is traditionally one of the busiest periods of the year for new-car sales.
He said it was understandable that buyers were concentrating on selecting a vehicle and negotiating the best possible deal, but stressed that insurance arrangements should receive the same level of attention.
Mr Warsop described the assumption that drivers are automatically insured during test drives or when collecting a newly purchased car as a “worryingly common insurance blindspot”.
He advised motorists to establish exactly what insurance cover is available before taking a test drive and to make sure they are adequately insured for the journey.
Many franchised and independent dealerships have motor trade insurance that can allow prospective customers to test drive vehicles. However, the level of protection provided can differ between dealerships, meaning drivers should not automatically assume they have comprehensive cover.
In some circumstances, dealership insurance may only provide third-party cover. This could mean that damage caused to the vehicle being driven is not covered by the policy.
Drivers may also face other restrictions, including minimum or maximum age requirements, licence conditions and excess payments that could leave them responsible for some costs following an incident.
Mr Warsop also warned motorists to pay close attention to their insurance when collecting a new vehicle.
Although some dealerships may ask customers to confirm that suitable insurance is in place before collecting a car, dealerships are not legally required to check a customer's insurance before handing over the keys.
This means the responsibility ultimately rests with the driver to make sure they have valid and appropriate insurance before driving the vehicle away.
For motorists who need cover for only a short period, temporary car insurance could provide an alternative option, depending on their circumstances.
Covertime is advising people planning to purchase a new vehicle this September to confirm their insurance arrangements before taking a test drive, check whether dealership-provided cover has any restrictions and ensure a valid policy is active before driving their new car home.
Driving without valid insurance is illegal in the UK and can result in a £300 fine and six penalty points being added to a driver's licence.
In more serious cases, motorists could face an unlimited fine, a driving ban or have their vehicle seized.
