Federated Insurance® Auto Dealer Claim of the Month – October 2025
Test Driving Vehicles
A technician was test-driving a customer’s vehicle after completing repairs. While driving, the technician crossed the center line and collided with an oncoming vehicle. The driver of the other vehicle suffered a fractured right hip, a broken femur, and facial bruises from the airbag deployment. The technician claimed the brakes on the customer’s car failed when he tried to stop, causing him to cross the center line. An investigation found the technician was speeding and using a mobile phone at the time of the crash.
CLAIM AMOUNT: $750,000
Risk management advice:
- Perform a pre-drive inspection: Technicians should complete a baseline evaluation of the vehicle’s condition, ensuring essential safety systems like brakes, tires, and lights are functioning properly.
- Know who’s behind the wheel: Assign experienced, properly licensed technicians to conduct test drives.
- Follow a predetermined route: Standard routes reduce risk by avoiding dangerous intersections, congested areas, and school zones.
- Provide safety training: Regularly train employees on proper vehicle handling, including defensive driving, avoiding distractions, and test-drive protocols.
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