If the car meets with a collision as soon as it leaves the showroom, then who will fix it?

Updated: 22-02-2026, 08.18 PM

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The car is yours as soon as it leaves the showroom

What is the news?

There were some cases when the new car met with an accident as soon as it left the showroom. Many times the accident is so dangerous that the vehicle gets completely damaged. In such a situation, the question arises that who will bear the expense of the damage to the car which had not even come out of the showroom? The cost of its repair will be borne by the insurance company or the showroom owner or the burden will be on the vehicle owner. Let us know what the rules say.

What do the rules say?

A very important thing while buying a car in India is handover. As soon as it is insured and the delivery papers are signed. From that moment the legal responsibility of the car passes to the owner. After this, even if the car is inside the showroom gate or has moved only 10 meters, in the eyes of the law it is now your car. In such a situation, the showroom owner is not responsible for any loss.

The loss will be compensated from here

Showroom owners currently do not deliver cars without insurance. Most dealers provide zero depreciation insurance. This insurance means there will be no reduction in the cost of parts. This includes covers ranging from minor scratches to major accidents. In this, customers have to pay only the file charge or deductible amount. Therefore, if the car meets with an accident as soon as it leaves the showroom, its damage is covered under insurance.

Showroom also has responsibility

The showroom staff was driving the car before delivery. The test drive area was not safe. If there was any technical negligence, then in such situations the responsibility can also fall on the showroom. In this accident, if there is any damage to the wall, gate, glass, pillar, floor of the showroom, then it is not covered under the car insurance. In such a situation, this expense may have to be paid from the owner’s pocket. In some showrooms this loss is compensated by property insurance.

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