Auto Dealer Insurance is a specialized insurance policy designed to protect auto dealerships against a variety of risks that they may face in their day-to-day operations. This type of insurance policy typically includes coverage for theft or damage to vehicles on the dealer's lot, including inventory, customer vehicles, and dealership-owned vehicles.
✔ Motor Vehicle Dealerships
✔ Trailer Dealerships
✔ Truck Dealerships
Dealership insurance failures often show up at the worst possible moment:
⦁ Inventory losses that aren’t fully covered
⦁ Garage liability claims that exceed policy limits
⦁ Test-drive or customer injury claims
⦁ Regulatory or audit issues tied to improper coverage
⦁ Lender or floor-plan compliance problems
⦁ Out-of-pocket losses that disrupt cash flow or threaten the survival of the dealership
In the worst cases, one uncovered or poorly covered loss can create serious financial damage—or end a dealership altogether.
Our role is to help prevent those scenarios before they happen.
We’ve insured independent and used car dealerships for more than 12 years. That experience matters because dealership risk is very different from standard commercial insurance.
As a Certified Insurance Counselor (CIC) and business owner, Matt Gerhardt understands:
⦁ How inventory, garage liability, and dealer open lot coverage really respond
⦁ How lender and floor-plan requirements affect coverage structure
⦁ Where dealerships are most commonly underinsured
⦁ How claims impact operations, reputation, and cash flow
This isn’t about checking boxes—it’s about making sure coverage holds up when something goes wrong.
Buy Here Pay Here dealers don’t just sell vehicles.
You finance them, carry the paper, and depend on steady cash flow to keep the business running.
That means when a loss happens, it can hit twice:
⦁ The vehicle itself
⦁ The payments tied to it
If insurance isn’t structured correctly, one uncovered or poorly covered loss can create a cash-flow shock that threatens the entire operation.
We help BHPH dealers design insurance that accounts for both inventory and financial exposure, so coverage doesn’t stop at the vehicle—it protects the business behind it.
When you work with Southwest Commercial Insurance, you’re not routed to a call center or reassigned to a new agent every renewal.
You work directly with a broker who:
⦁ Takes time to understand your operation, inventory levels, and growth plans
⦁ Reviews changes before renewal—not after a loss
⦁ Helps keep coverage aligned with lender and regulatory expectations
⦁ Acts as your advocate when claims arise
That relationship creates consistency and clarity—two things every dealership needs when risk is high and margins matter.
We structure dealership insurance intentionally, based on your operation—not a template:
⦁ Garage liability
⦁ Dealer open lot / inventory coverage
⦁ Commercial auto
⦁ Workers’ compensation
⦁ Umbrella and excess liability
⦁ Additional coverages required by lenders or regulators
The goal isn’t the cheapest policy.
The goal is to avoid uncovered losses that create financial strain or long-term damage.
We work exclusively in commercial property and casualty insurance. We do not sell personal lines.
That focus allows us to stay current on dealership underwriting trends, carrier appetite, and common claim issues—so your coverage stays relevant as conditions change.
If you own or operate an independent or used car dealership and want insurance guidance designed to protect inventory, cash flow, and the future of your business, we’d welcome the opportunity to help.
Schedule a conversation to review your dealership insurance and identify potential gaps—before a loss does it for you.