Maximizing Auto Dealers Insurance for Unprecedented Protection
Cars are a major purchase and running a car dealership requires you to have the necessary insurance in place to protect yourself, your business, and your customers. When choosing auto dealers insurance it is important to have a full understanding of what the policy covers and what it does not protect.
It’s essential, therefore, to find the right cover that will provide one with peace of mind and enable a business to succeed. This article will guide you through the key points of auto dealers insurance so that you can find the policy that best suits your needs.
What is Auto Dealers Insurance? Auto dealers insurance, commonly known as motor trade insurance or garage insurance, is a type of insurance designed to protect a business against the adverse financial effects of loss and damage that are associated with the selling, servicing and repair of cars and other motor vehicles. Auto dealers insurance protects against several potential risks, including public and employee liability cover, loss or damage to your business premises and business interruptions.
Who Needs Auto Dealers Insurance? Any business that is involved in buying, selling, repairing and servicing motor vehicles will need to insure their operations and this can be done with auto dealers insurance. This type of cover is appropriate if you:
– own a car dealership
– own a garage that repairs and services vehicles
– perform authorized repairs
– need customer vehicle coverage
– offer a recovery service
Auto dealers insurance can also cover mobile mechanics as well as auto parts and accessories suppliers.
What Does Auto Dealers Insurance Cover? The types of risks that auto dealers insurance covers can vary from policy to policy, however, there are generally a few standard elements of cover included in every motor trade insurance policy.
Public liability: Public liability protects one from any income damages or injury claims if a visitor to the business’s premises is injured, or their property is damaged.
Employers’ liability: When running a business that hires staff, employers’ liability cover is a legal requirement. Most motor trade policies include this as a standard.
Loss of or damage to premises: This type of coverage protects against damage caused to the building and its contents such as fixtures and fittings, tools, stock and machinery. Some policies also cover loss of business due to damage to buildings and machinery.
Business interruptions: Business interruption protects one’s business in the event of any interruption to your activities that has been caused by an unforeseen event or material damage.
Customer vehicles: Customer vehicles coverage protects vehicles that are being repaired or serviced at the premises, or those which have been taken away from the premises for a short period.
Commercial Motor Trade: These types of policies are designed to cover a company’s commercial motor fleet, covering any vehicles used for business purposes.
Excluded Items: It’s important to mention that some items are excluded from auto dealers insurance. Be sure to always carefully review your policy documents endorsements and exclusions.
How to Get Auto Dealers Insurance: The best way to get and find the appropriate auto dealers insurance is to speak to an insurance broker – also known as an independent insurance agency. They can tailor a policy according to each business’s particular needs. This is highly recommended as each business is different and needs to be treated differently.
When looking to get auto dealers insurance, it’s important to be clear on the types of work the business is engaged in, the value of vehicles normally handled, the value of stock etc. This will help the insurance broker to determine the best policy for the business.
To be able to provide a quote, the insurance company will ask for all the relevant details which may include the type of business, age and gender of drivers, construction of business premises and security measures, business turnover and number of years in business.
Cost of Auto Dealers Insurance: The cost of auto dealers insurance can vary depending on several factors, including the type of policy chosen, business turnover, postcode, number of staff, driving records and the type of work performed. That said, the cost is generally more affordable than most expect.
Auto Dealers Insurance Conclusion
Auto dealers insurance is essential for any business that is engaged in the buying, selling, servicing, repairing and rebuilding of motor vehicles. It’s important to find the appropriate coverage that will provide peace of mind and protect one’s business. Give us a call today and find the right type of coverage and policy for your auto business.
Frequently Asked Questions About Auto Dealers Insurance
- What is auto dealer insurance?
Auto dealer insurance is a specialized type of insurance coverage designed specifically for businesses that operate in the automotive industry. It provides coverage for various risks associated with auto dealerships, including liability, property damage, inventory, and other unique exposures.
- Why do auto dealers need insurance?
Auto dealers face significant risks due to the nature of their business, such as potential damage to inventory, accidents during test drives, employee liability, customer lawsuits, and more. Auto dealer insurance helps protect these businesses from financial losses resulting from such risks.
- What types of coverage are included in auto dealer insurance?
Auto dealer insurance typically includes multiple types of coverage, such as general liability insurance, property insurance, garage liability insurance, garagekeepers insurance, workers’ compensation insurance, and business interruption insurance.
- Do auto dealers need liability insurance?
Yes, liability insurance is crucial for auto dealers. It provides coverage for bodily injury or property damage claims made against the dealership by customers or third parties. This coverage is essential in case of accidents that occur on the dealership premises or during test drives.
- What is garage liability insurance?
Garage liability insurance provides coverage for accidents or injuries that occur on the dealership premises, such as slip and falls, accidents involving dealership-owned vehicles, or injuries sustained during test drives. It helps protect auto dealers from legal claims and associated costs.
- What is garagekeepers insurance?
Garagekeepers insurance covers damage to vehicles owned by customers while they are in the care, custody, and control of the dealership. It helps protect auto dealerships from financial liability if a customer’s vehicle is stolen, damaged, or vandalized while in their possession.
- Is workers’ compensation insurance necessary for auto dealers?
Yes, workers’ compensation insurance is typically required for auto dealerships. It provides coverage for employees who may get injured or become ill on the job. This coverage helps pay for medical expenses, lost wages, and rehabilitation, while protecting the business from potential lawsuits.
- How much does auto dealer insurance cost?
The cost of auto dealer insurance varies depending on several factors, including the size of the dealership, location, type of vehicles sold, coverage limits, claims history, and more. It is best to contact insurance providers for a personalized quote.
- Can a dealership add additional insureds to their insurance policy?
Yes, auto dealerships can typically add additional insureds to their insurance policy. Additional insureds might include finance companies, lenders, or any other stakeholders that the dealership wants to provide coverage for under their policy.
- Are there any discounts available for auto dealer insurance?
Insurance providers may offer various discounts for auto dealer insurance policies, such as multi-policy discounts (if you also obtain other types of insurance from the same provider), claims-free discounts, security system discounts, and more. It’s recommended to explore available discounts with insurance providers to find the best options for your dealership.