Yep, a lot of people also believe that it's not covered if it's someone else driving...But I read in one of the insurers booklets (would've been Shannons or JCI but I'd say they all have the same policy), that if it's a test drive it's still covered.
I told him on the phone several times that if I'm driving almost 2 hours to check it out, I'm not driving home without buying it unless it's not what he'd advertised...