As an auto dealership, you have a responsibility to protect your business and your customers. One critical aspect of this protection is having the right insurance coverage in place. Garage liability insurance, also known as car dealer insurance, is a type of insurance specifically designed to cover auto dealerships against claims arising from their operations.

Why Do Auto Dealerships Need Garage Liability Insurance?

Auto dealerships face a variety of risks, including liability claims from customers and the potential for property damage. Garage liability insurance can help protect your dealership against these types of claims, ensuring that you have the financial resources to cover the costs of any lawsuits or settlements.

Protection for Used Car Dealerships

Used car dealerships face unique risks compared to new car dealerships. For example, a used car may have a pre-existing condition that was not disclosed to the dealership, and a customer could sue the dealership for selling them a faulty vehicle. Used car dealer insurance can help protect the dealership against these types of claims.

Cost of Used Car Dealer Insurance

The cost of used car dealer insurance can vary depending on several factors, including the size of the dealership, the number of vehicles in inventory, and the specific risks the dealership faces. Some insurance companies may offer a bundled package that includes both liability and property insurance for a lower cost.

What Does Garage Liability Insurance Cover?

Garage liability insurance provides coverage for a variety of risks, including:

• Liability claims from customers
• Property damage to your dealership
• Injury to employees while they are on the job
• Loss or damage to customer vehicles while they are in your possession

Coverage for Customer Vehicles

One important aspect of used car dealer garage insurance is the coverage for customer vehicles. This coverage protects the dealership if a customer’s car is damaged while it is being serviced or repaired at the dealership. This type of coverage is typically included in most used car dealer insurance policies, but it’s essential to check with your insurance provider to confirm.

Choosing the Right Insurance Provider

When choosing an insurance provider for your auto dealership, it’s important to find a company that has a deep understanding of the unique risks faced by dealerships. This includes not only the risks associated with selling vehicles but also the risks associated with maintaining and repairing them.

Your insurance provider should also be able to work with you to create a customized insurance package that meets your specific needs. This may include coverage for your dealership’s property, liability coverage, and insurance for customer vehicles.

Considerations for Used Car Dealerships

If you run a used car dealership, it’s important to consider the age and condition of the vehicles in your inventory. Older vehicles may have a higher likelihood of requiring repairs, which could result in a higher cost for insurance coverage. Your insurance provider should be able to assess these risks and help you find the right insurance coverage to meet your needs.

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Garage liability insurance is a critical aspect of running a successful auto dealership. It helps protect your dealership against various types of claims, including those arising from your operations and those involving customer vehicles.  Contact us today for more information or for a garage liability insurance quote.