Private car sale: Is your buyer insured to test-drive your car?

By Ané Theron

You've placed your ad on AutoTrader, you've screened a few potential buyers and you've got your car in tip-top shape. Now the test-driving is about to commence. Are you insured if the test-driver causes an accident?

As long as he or she is in possession of a valid South African driver's license, he doesn't need any type of insurance. But what if he exits your driveway and drives straight into the nearest stop sign?

We spoke to a few insurers about this. MiWay said that when you allow 'strangers' to test drive your car, it is solely at your own risk - damages caused by the potential buyer behind the wheel, will have you paying the excess.

Outsurance says you are covered up to a point (depending on what kind of insurance policy you have), unless you are lending out your car to a potential buyer for the entire week/weekend, or having back-to-back test drives for a long or unspecified amount of time. A 'regular' test drive where the potential buyer is just taking the car out for a short drive is completely acceptable - you don't even need to be in the car with them.

Your best bet? Contact your car insurer to find out the nitty-gritty details of what your specific policy entails, before allowing any person to test drive your car. Ideally, this is a box that needs to be ticked even before you start advertising your car.