Legal Question in Consumer Law in Utah

Re: Who is liable for damage to an auto on a test drive?

The dealer is the owner of the car and is responsible to have it insured. If they failed to have their cars insured, they should have warned your daughter. Your daughter may have had coverage from her auto insurance, even though she did not own the car (but such coverage is optional) -- you may want to check with her agent.

Ultimately a court would have to decide the matter. Your daughter may be found liable for some damages if she was determined to have been negligent in the operation of the borrowed car.

I would demand insurance information from the dealer. It would be very unlikely that they are not insured. They may not want to file a claim, since too many claims would cause their premiums to go up, and they may attempt to intimidate your daughter into paying for the loss.

The only way you may know for sure is through formal discovery in a lawsuit. You may have to wait and see what the dealer actually does. If they sue, then you can ask for all insurance information. If they in fact have no insurance, the next issue will revolve around whether they have a duty to be insured, or whether your daughter was informed that she was liable in the event of an accident. This will not be a simple case.

Good luck. You may call for a free consultation if you need additional information.