Temporary insurance for demonstration vehicles: extended trial & customer loan, what are the conditions?
Demo vehicle or customer loan? Take out temporary insurance to cover limited use, multiple drivers, and ensure all coverages are adjusted. KT Tempo is here to help.
In the world of car dealerships, demonstration or customer loan vehicles are commonplace. A vehicle made available for an extended test drive or loaned to a customer involves specific risks—and requires appropriate coverage. Temporary insurance can then be the ideal solution: it allows you to cover the vehicle for a defined period, with guarantees tailored for "demo/test drive" use. This article explains everything you need to know to properly insure a demonstration or customer loan vehicle through KT Tempo.
1. What uses are covered by this formula?
- Demonstration vehicle : the dealership makes a vehicle available for extended tests, test days, mobile showroom.
- Customer loan : a vehicle loaned to a customer as a replacement for their broken-down vehicle or for temporary use.
- Extended trial before purchase : the customer uses the vehicle for several days or weeks before making a purchase decision.
- In all these cases, the usage goes beyond the scope of simple standard personal circulation, and the classic insurance contract may not cover all risks.
2. Why opt for temporary insurance in this context?
- Usage is limited in time (a few days to a few weeks): taking out an annual contract may be excessive.
- The nature of the use — demonstration, multiple loan, different driver — creates a higher or atypical risk profile.
- It is necessary to ensure that the vehicle is covered for all drivers and intended uses during the loan or trial period.
- Temporary insurance allows you to precisely define the duration, use and profile, in order to adapt the price and the guarantees.
3. Conditions and documents required
Multiple drivers and profiles
- The vehicle can be driven by several people (clients, employees, advisors): the insurance must accept unspecified or multiple drivers.
Duration of coverage
- Determine in advance the duration of the trial or loan (e.g. 7 days, 14 days, 30 days) and subscribe for that period.
Declared use
- Usage “demo/trial/customer loan” must be declared to the insurer to avoid the guarantee being cancelled.
Documents to provide
- Vehicle registration document for the demonstration vehicle
- Valid driver's licenses of the drivers concerned
- Loan/trial contract or agreement specifying duration and use
- Temporary insurance certificate specifying the conditions (duration, use, driver)
4. Key guarantees to check
- Mandatory civil liability insurance : covers damages caused to third parties.
- Vehicle damage : for test drives or loans, you must cover the risks of theft, fire, collision; the deductible may be increased.
- Assistance : useful in case of breakdown or incident during a trial or loan, to maintain the customer experience.
- Non-primary driver : coverage for occasional drivers of the loan or trial.
- Demo or commercial use : check that the contract does not limit use to “personal use”.
5. Practical advice for the dealership or the user
- For the dealership: clearly inform your insurer that the vehicle is exposed to multiple and temporary “demonstration/customer loan” uses.
- Document each use thoroughly: duration, driver, destination, conditions.
- Limit the duration of each trial or loan to better control the risk.
- Verify that the drivers hold the appropriate license and have the necessary qualifications.
- Compare temporary insurance plans to find the one that offers the best coverage at the best price for limited use.
Conclusion
Lending or using a vehicle for demonstration or customer loan purposes is a winning strategy for dealerships… provided the insurance is adequate. A temporary insurance policy allows you to adjust coverage to the duration and actual usage, while protecting both the vehicle and the brand. With KT Tempo, you have a fast, flexible solution tailored to these specific uses.