Establishing secure connection…Loading editor…Preparing document…

Release, Waiver and Hold Harmless Agreement Regarding Test Drive

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Release, Waiver and Hold Harmless Agreement regarding Test Drive

Dealer Name:

Salesperson’s Name:

Salesperson’s ID:

Customer’s Name:

Customer’s Driver License No.:

Address:

Home Phone: Work Phone:

Cell Phone:

Date of this Agreement:

Test Drive Start Date: Test Drive End Date:

Test Drive Start Time: Test Drive End Time:

Stock#: Tag #:

Customer Photo ID:

Vehicle Identification Number:

Notice – Test Drive Agreement

Test Drive Agreement

This Test Drive Agreement (the Agreement) is made on the (date), between of referred to herein as Customer, and a corporation organized and existing under the laws of the state of with its principal office located at referred to herein as Dealer.

Whereas, Customer desires to evaluate the vehicle with stock, tag and vehicle identification numbers as listed above (the Vehicle); and

Whereas, Dealer consents to such evaluation in accordance with the terms of this Agreement;

Now, therefore, for and in consideration of being allowed to test drive the Vehicle, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Customer agrees to the following:

1. Customer shall only drive the Vehicle from the Test Drive Start Time on the Test Drive Start Date until the Test Drive End Time on the Test Drive End Date defined above.

2. Customer shall be responsible for any and all liabilities (civil, criminal or otherwise) incurred while driving the Vehicle.

3. Customer shall not use the Vehicle for any purpose deemed illicit or illegal, or for any purpose which is otherwise in violation of federal, state or local laws.

4. Customer does hereby release Dealer, Dealer’s employees, successors, and assigns (collectively Releasees) from all liability for property damages and/or for any physical injury or death (accidental or otherwise) that results, directly or indirectly from the Test Drive. Customer further agrees to indemnify, save and hold Releasees harmless from any loss, liability, attorneys’ fees, damage, or costs that Releasees (or any of them) may incur arising out of or related to the Test Drive, whether caused by the negligence of the Releasees or otherwise.

5. This Agreement shall in no way imply the transfer of ownership of the Vehicle from Dealer to Customer.

6. Failure to comply with the terms of this Agreement, including failure to return the Vehicle at or before the Test Drive End Time on the Test Drive End Date, may result in criminal and/or civil proceedings being brought against Customer.

WITNESS our signatures as of the day and date first above stated.

(Name of Dealer)

(Printed Name of Customer)

(Printed Name & Office in Corporation)

(Signature of Customer)

By:

(Signature of Officer)

Enter text✕
Prepare your document for signing right on this page
  • 01 Edit the text and complete the fields
  • 02 Click Sign Now and on the next screen add recipients and signature fields in SignNow
  • 03 Start your free trial to sign and send your doc
Sign Now

What this Release, Waiver and Hold Harmless Agreement Covers

A Release, Waiver and Hold Harmless Agreement Regarding Test Drive is a written contract between a vehicle owner or dealership and a prospective driver that allocates responsibility for injury, property damage, and third-party claims arising from a test drive. The agreement identifies the parties, describes the vehicle and permitted use, lists insurance and safety requirements, clarifies assumption of risk, and includes indemnity language asking the driver to release and protect the owner from specified claims. Properly completed and executed, the document documents consent, limits liability where lawful, and supports insurance and claims handling after an incident.

Why you need a clear release and hold harmless clause

A clear, written release reduces uncertainty after accidents by documenting consent, assumed risks, and indemnification terms; it complements applicable state law and electronic signature statutes such as the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted.

Why you need a clear release and hold harmless clause

Who completes this agreement and when it’s used

Dealerships, private sellers, rental agencies, and fleet managers commonly use this agreement before allowing a prospective driver to operate a vehicle for a test drive.

  • Dealership sales staff who arrange test drives and verify credentials and insurance.
  • Private sellers meeting buyers for an inspection and short demonstration drive.
  • Fleet managers or rental agents authorizing supervised test drives or evaluations.

Use the agreement whenever an unaccompanied or accompanied person will operate a vehicle off the seller’s property or when the seller requires documented risk allocation.

Typical signer roles

Dealership Sales Manager

Responsible for ensuring the test driver completes identification checks, insurance verification, and the release before the vehicle is operated. Maintains the executed form in business records and coordinates follow-up if an incident occurs.

Test Driver

A prospective buyer or renter who provides driver’s license and insurance information, acknowledges risks, signs the release and indemnity, and accepts responsibility for misuse or violation of test drive conditions stated in the agreement.

Core elements to include in a professional test drive release

A complete agreement combines identification, vehicle and time details, insurance and safety requirements, explicit assumption of risk, indemnity language, and signature blocks to ensure enforceability and practical use after an incident.

Parties

Full legal names and business or individual status for the owner/seller and the person taking the test drive, including mailing addresses and contact details for post-incident notices.

Vehicle Details

Make, model, year, VIN, license plate, and any equipment limitations or conditions—documenting the specific vehicle covered prevents ambiguity in later claims.

Permitted Use

Exact start and end times, authorized route or areas, and whether an employee must accompany the driver to limit unauthorized use and establish expectations.

Assumption of Risk

Clear language stating the driver understands inherent risks of driving and agrees to assume responsibility for loss or injury caused by their negligence subject to applicable law.

Indemnity and Hold Harmless

A clause requiring the driver to indemnify and defend the owner against third-party claims arising from the driver’s operation of the vehicle, carefully drafted to comply with state limits.

Signature and Date

Signature lines for driver and seller, printed names, driver’s license number, insurer name and policy number, and date of execution to document consent and attribution of signature.

Step-by-step: completing the agreement before a test drive

Follow these sequential steps to ensure the release is valid, attributed, and usable in insurance or legal proceedings.

  • 01
    Prepare Form: Populate seller and vehicle fields before meeting the driver.
  • 02
    Verify Identity: Inspect and record driver’s license details and expiration date.
  • 03
    Check Insurance: Confirm active policy and document insurer name and policy number.
  • 04
    Execute Signature: Have the driver sign and date; provide a copy to the signer.

How the signed release is used after execution

A signed release documents consent, supports insurance notifications, and provides evidence if a claim arises; keep and route copies per internal procedures.

  • Record Retention: Store executed copies for the retention period required by law or policy.
  • Insurance Notification: Provide insurer with driver and incident details if a loss occurs.
  • Claims Support: Use the agreement to substantiate assumed risks and indemnity clauses during claims handling.
  • Internal Review: Review completed forms periodically to ensure consistent processes.

Typical digital workflow settings for a test drive release

Configure fields, authentication, and routing to match your compliance and operational needs before sending the form.

Field Configuration
Signature Method E-signature with audit trail or handwritten scan
Authentication Email link plus optional SMS code
Required Fields Driver license, insurance, VIN mandatory
Routing Send copy to sales and risk email boxes

Platform and technical considerations for e-signing

Choose a platform that supports required authentication, preserves an audit trail, and outputs a tamper-evident signed PDF.

  • File Formats: PDF, DOCX supported
  • Integrations: CRM and cloud storage connections
  • Authentication: Email, SMS, or KBA options

Ensure the chosen solution records timestamps, IP addresses, signer details, and stores an audit trail that meets your internal and insurer requirements.

Security and compliance points to verify

Encryption: TLS 1.2/1.3 in transit
Data at Rest: AES-256 encryption
Certifications: SOC 2 Type II
Healthcare: HIPAA BAA available
Audit Trail: Detailed signing log
Authentication: Multi-factor options

Common mistakes when preparing this agreement

  • Using vague or generic language for vehicle identification that makes it unclear which vehicle is covered, complicating post-incident claims.
  • Failing to verify or record the driver’s license and insurance details, which can void coverage or impede liability determinations.
  • Overbroad indemnity language that violates state public policy and may be unenforceable if not tailored to local law.
  • Neglecting to retain an executed copy or audit trail, creating evidentiary gaps during insurance or legal disputes.

Key legal risks and potential consequences

Civil Liability: Monetary damages for negligence
Contract Voidance: Court finds clause unenforceable
Insurance Denial: Claim rejected for noncompliance
Regulatory Action: State consumer protection fines
Criminal Exposure: Gross negligence may trigger charges
Operational Loss: Reputational and administrative costs

Timing considerations and key deadlines

Capture and verify timing elements so coverage and responsibility are clear for the test drive period and any incident reporting.

Pre-Drive Verification:

Complete identity and insurance checks immediately before the drive

Execution Timing:

Signer must date and sign on the same day as the test drive

Incident Reporting:

Report accidents to insurer within policy-required timeframes

Record Retention Start:

Retention periods begin on execution date

Attorney Review Window:

Allow time for counsel review for high-risk cases

Sample eSignature vendor comparison for handling test drive releases

Compare core pricing and compliance features for common eSignature providers when automating release execution; signNow is listed first per vendor comparison guidelines.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently asked questions about test drive releases

Answers to common legal, practical, and technical questions about drafting, signing, and enforcing a Release, Waiver and Hold Harmless Agreement Regarding Test Drive.


Need help? Contact support

Explore Templates

Appendix H Form 5B Irrevocable Reversionary Inter Vivos Medical Trust COBRA Continuation Waiver Letter Pre-Existing Condition Exclusion Department of Labor Form 2004 M-1 Employment Welfare Loan Request Form Glossary of Employee Benefit Terms
be ready to get more
Join over 28 million airSlate SignNow users
Sign Now
Company
Forms
Pricing
Resources
Knowledge base
Other Products
© 2026 airSlate Inc. All rights reserved.