In an unexpected turn of events, Tesla has waived a $6,845 CAD ($5,200 USD) bill for collision damage that occurred during a test drive by a couple from Orillia, Ontario in Canada.
Rick Garel and Bisa Mitrovski, who now own a new Tesla Model 3, were involved in a hit-and-run incident during one of their extended test drives last year.
The couple reported the accident to the police and returned the damaged vehicle to Tesla, assuming that either their insurance or Tesla’s would cover the cost. However, Garel had signed an agreement form prior to the test drive stating that he would be responsible for any losses resulting from a breach of the agreement’s terms.
When Garel approached his insurance company, he was informed that his policy did not extend to rental cars, including test drive vehicles, and his claim was denied. Consequently, Tesla billed him $6,845 for the collision damage. He then went to CTV News to share his story to state his case and get help with the bill, and the news organization was successful.
David Levy, a partner with Howie, Sacks & Henry LLP in Toronto, stated that typically, a dealership should cover the cost of any damage that occurs during a test drive. However, to reduce insurance costs, more dealerships are introducing waivers for test drives, which can hold the test driver responsible for damages.
After CTV News Toronto contacted Tesla, the company decided to forgive the $6,845 bill for the damage, closing the case. The couple expressed their relief and gratitude for the resolution of the matter. That’s pretty nice of Tesla to do that.
This incident serves as a reminder for potential car buyers to inquire about insurance coverage during test drives and to check with their own insurance companies if asked to sign a waiver. Without proper coverage, drivers could be held financially responsible if the car gets damaged during a test drive.
