Auto Dealers Insurance
Operating an auto dealership comes with unique risks, from vehicles on your lot being damaged or stolen to liability claims tied to test drives and customer transactions. Auto dealers insurance may help cover physical damage to inventory, liability for accidents involving dealership vehicles and losses related to your showroom or lot. Coverage is typically customized based on whether you sell new or used vehicles, the size of your inventory and whether you offer financing or repair services.
What Does Auto Dealers Insurance Typically Cover?
Dealership policies often combine multiple coverages into a single package. Common coverages include:
- Garagekeepers coverage for customer vehicles left in your care
- Physical damage coverage for your inventory against theft, vandalism or weather events
- Dealer liability for accidents involving dealer plates or loaner vehicles
- General liability for customer injuries on your lot or in your showroom
- Garage liability for operations like test drives, service and repairs
Is Auto Dealers Insurance Required in California?
California requires licensed dealers to carry liability insurance as a condition of holding a dealer license. Lenders and manufacturers may also require additional coverage before extending floor plan financing or franchise agreements.
How Much Does Auto Dealers Insurance Cost?
Premiums depend on factors like inventory value, dealership size, whether you offer financing or repair services and claims history. Ontario, CA dealership owners can get an accurate quote by speaking directly with a licensed agent about their specific operation.