Wanting to improve his family's mode of transportation from a 1986 Ford Topaz, Jerry Brock of Brigham City stopped at Overland West Hertz Car Sales in Ogden last October to inspect a white 1992 four-door Geo Prizm.
Brock left the lot at 2805 Washington Blvd. in the Prizm and was approaching the corner of 29th Street when he glanced away from the road for a second, he said.Moments later, after colliding with another vehicle in the intersection, Brock stood beside Overland's wrecked car.
The collision caused minor damage to the other car, but the Prizm's hood was caved in. No injuries were sustained, but the accident sparked a legal debate between Brock and the dealership about the $5,000 bill for the damage to the car.
Overland contended that because Brock caused the damage, he should pay for it. Brock said that the salesman gave him permission to drive the car and did not warn him the car did not have collision insurance.
Brock also said the salesman told him the damages would be covered by the dealership's insurance. About six weeks after the accident he received a bill for $5,011.95.
Brock, who had dropped his comprehensive collision insurance because of the low value of his car, refused to pay the bill.
He said he attempted a compromise but was told by an Overland employee he was solely responsible for the entire bill.
"I am at fault for the accident," he said. "But they are at fault for not telling me they didn't have insurance. They gave me permission to drive it and they should be responsible for the car."
Seeking the full repair bill and attorney's fees, Overland West Inc. filed suit against Brock in 2nd District Court April 25.
Walter T. Merrill, Overland West's attorney, said at the time, the dealership assumed Brock should take financial responsibility for the repairs because he caused the accident. Since then, Overland has withdrawn the lawsuit because the company had initially told Brock it would not pursue him personally, Merrill said.
Garr Ovard, consumer service examiner with the Utah Insurance Department, said the laws become convoluted when a car owner hands the keys to someone else, but it falls back to the question of basic liability.
"It is really a tough question, who should be responsible. Most people who test drive cars are faced with this problem," he said.
Ovard said it is difficult to say how the law should be interpreted in each situation but accountability of the driver should be a leading factor. "A rough rule of thumb should be that the person who causes the damage pays for the car," he said. "If there is no insurance involved, it should be the responsibility of the person who causes the damage."
Merrill agrees.
Utah law stipulates that car owners must have liability insurance on all registered vehicles. Insurance in Utah also covers the vehicle and those authorized to drive it. Ovard said that dealerships must abide by the same insurance rules as individuals.
Rep. Douglas Peterson, R-Roy, said a law should be enacted so prospective customers would know in advance who would be financially responsible for a mishap during a test drive.
"This is definitely a consumer protection issue. I think the question of who is liable needs to be clarified in cases like this,"said Rep. Douglas Peterson, R-Roy, who had heard about Brock's case. "If you are in an unfortunate incident and an accident occurs, there needs to be some type of law to protect you."
After hearing Brock's story, Sen. John Holmgren, R-Bear River, said he asked dealers in the area about their insurance policies and discovered most car dealers have collision insurance.
"I think it is amazing that a car dealer wouldn't carry insurance," he said. "But ultimately, I think it should be the dealer's responsibility until the car is bought."
Holmgren and Peterson both said the law would have to be as uncumbersome as possible for the dealers but offer protection to the customer as well. Peterson said he would like to investigate the problem in depth and work with Holmgren to present the bill to the House and Senate in January.
But Ovard said the department of insurance would need to talk to insurance agencies and car dealerships for a consensus before any laws were enacted.
"We would have to give it considerable thought before any long-term effects were made," he said.