Ontario driver charged $6,845 following Tesla test-drive collision

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Part of the vehicle purchasing process is taking your potential new car for a spin, or two, or few, in some cases. But what happens if you get into an accident during the test drive? For Ontario resident Rick Garel, he got a little more than expected out of his test-drive of a Tesla Model 3, CTV recently reported, that led to a $6,845 repair bill from Tesla.

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Back in 2022, Garel took a Model 3 for numerous long-range test drives — he was waiting for delivery of his car that was previously ordered, which he now owns. During one of the test drives, he was involved in a hit and run accident in which the tester was hit on the rear passenger side door, leaving small yet noticeable dents and scratches.

He and his wife did the right thing by reporting the accident to police. He then informed Tesla, and returned the car and figured it’d all be covered either by his or Tesla’s insurance. That wasn’t exactly the case.

Prior to the test drive, Garel signed an agreement stating: “You will be responsible for any losses that result from a breach of the terms of this agreement.” Furthermore, his insurance did not cover rental cars — test-drive vehicles fall under the scope of rentals — and the claim was denied. Tesla informed him it was his responsibility to pay $6,845 to repair the damaged Model 3, which was a shock to him.

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The dealership should have insurance for those vehicles, lawyer David Levy told CTV, “as the adage goes – when you lend someone your car you lend them your insurance too.” But as a way of reducing insurance costs, some dealerships ask drivers to sign a waiver that says you can be held responsible for damages — even if it’s not your fault.

Thankfully, the couple said after CTV News Toronto called Tesla (to which CTV didn’t receive a response), Tesla decided to wipe out the charges and close the case.

Moral of the story: Read the fine print; read everything before you sign it. And make sure to ask questions so you know exactly what you’re getting yourself into, even if it’s just test-driving a car.