Is Insurance Required to Test Drive a Vehicle in India?


5 min read

Updated on Sep 28, 2022

Can You Test Drive a Car in India Without Insurance?

Keen to buy a new car for your family? The excitement starts when you visit a car showroom for a test drive. Isn’t it? No matter how much you research about different car models, you won’t get satisfaction unless you drive it to check it out. But is everyone allowed to go for a test drive? What if you hit the car during a test drive? It is where comes the question of whether it is essential to have car insurance to test drive a car?

Wondering that do I need insurance to test drive a car? Yes, to run on any Indian road, all motor vehicles must be insured under a compulsory Third-Party Liability Plan. In this article, we aim to help you understand what is the need for car insurance for a test drive. But, before we do so, why not first check out the need to take a test drive before buying a new car? So, read on!

Why Take a Test Drive Before Buying a Car?

Going for a test drive is undoubtedly a very important step before investing your hard-earned money in any car. It allows you to drive the car yourself without second-hand information. You get the opportunity to check the car and inspect its features yourself. Driving the car on a test drive helps you to gain first-hand experience of the vehicle. You can look for the pros and cons of the car and this, in turn, will help you make a call about whether or not to buy that car. Discovering some issues during the test drive will help you save your money that may otherwise go wasted in the wrong car that will incur you some unusual expenses.

Can I Test Drive a Car Without Insurance?

Now, coming straight to the point do you need insurance to test drive a car? You must be aware of the benefits of buying affordable car insurance, but do you think that without a car insurance you can’t test drive a car? No, that is not the case, you can go for a drive even without a car insurance. However, all vehicles need to be covered under a TP or Third-Party Liability Plan to run on the Indian roads. A Third-Party Liability Plan is coverage for damages or injuries to a third person or party in case an accident takes place while test driving a car. But, for this matter you as a potential car buyer need not worry at all. The car dealer will ensure that the car you test drive is insured with a TP and Own Damage Insurance to meet the above-mentioned requisites.

What is a Test Drive Insurance?

You must have heard and bought car insurance, but what about test drive insurance? A test drive insurance is actually a short-term plan that aims to cover you when you are set to test drive a car from a showroom. Usually, a dealer takes comprehensive car insurance for test-driving cars, which includes both a third-party liability plan and own damage insurance. The former covers the damages or injuries of a third party. The latter covers the damages incurred by the test-driving car.

What are the Benefits of a Test Drive Insurance?

Whether you will buy the car you wish to take for a test drive or not, you need to be insured. Accidents can take place anywhere and irrespective of the fact whether the car you are driving is yours or a car on a test drive. So, to minimize the risk factor and to ensure your safety, the dealers are supposed to offer cars only with car insurance. The two benefits of insurance that a dealer usually has are:

  1. Insures the person taking the car for a test drive.
  2. Insures other people on the road when a person takes the car for a test drive.

So, all-in-all, with test drive insurance, you can take the car of your dreams for a test drive without any fears of damages and losses. If God forbids, any damage or accident takes place, you will not be charged a single penny for the loss.

How does Test Drive Insurance Work?

You need not buy online car insurance to test drive a car. If you are trying to buy a new car through a dealer, the dealer will arrange for the car insurance by self. In plain words, the car dealer must ensure the test-driving car with the mandatory Third-Party Insurance Plan. Some dealers also go for the best car insurance for comprehensive coverage against any kind of damage during the test drive. Dealers look for car insurance with an own damage insurance plan to cover the damages to the car.

What do you need to Test Drive a Car?

All you need to test drive a car is to carry your valid driving license. Worry not, you need not buy car insurance to test drive a car at any auto showroom. This part of insurance is taken care of by the auto showroom dealer. You can book a car for a test drive by showing your valid driving license or DL. Besides, your dealer must check the test drive car to be legally compliant to run on the public roads. Some car dealers and states may vary in these requirements to offer you a car for a test drive, so do check them before booking a car for a test drive.

Know More: Important Car Safety Rules to Stay Safe on Roads


Test drive cars are easily available at all the renowned car showrooms. To ensure that no buyer feels at risk driving a car, the dealers offer test drives with car insurance covering a third-party liability plan and own damage cover. Both these insurances cover damages to any third person and the car during the test drive. So, a quick tip here is never to risk your life by taking a car for a test drive from a dealer who has no test drive insurance.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.


View this post on Instagram


A post shared by paybima (@paybima)

Jul 28, 2022
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2022 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back