If you own a used car dealership, driving is part of your everyday tasks. You, your employees and others will need auto insurance whenever they hit the pavement. Still, because you will drive for business, you must carry commercial auto insurance which is included as part of a good garage policy. As an auto dealership specifically, you must tailor this protection to provide coverage while at your dealership as well as while you're on the road. How can you do that? What special aspects of your business must you consider?
Garage Dealership Insurance In A Nutshell
As a used car dealer, you are unique in that you conduct business at a specific location, but your business also includes driving out on the road. General liability is used to provide liability coverage at your store. However, when your business operates vehicles, you take on added driving risk. If accidents happen, financial losses could impact your company. As a result, standard auto insurance often doesn't offer enough protection. Drivers and vehicles will therefore need the enhanced protection of commercial auto coverage. It'll better protect operations following wrecks, injury lawsuits or other costly mishaps. Combining aspects of general liability and commercial auto coverage is what garage insurance is all about.
Obtaining Coverage For Your Dealership
Since dealerships work in vehicle sales, how your structure your garage policy will require a specialized approach. At minimum, for the driving exposure most company drivers and vehicles will need to carry:
- Liability Insurance: This comes into play if a company driver causes an accident while on business (such as during a test drive). This coverage can pay for the property damage or injuries of other people. For example, it can pay for the losses of the driver whose car you hit. Your state will likely require you to carry minimum levels of coverage.
- Physical Damage Coverage: This helps you repair vehicles owned by the business.
- Collision coverage pays for damage from wrecks.
- Comprehensive insurance covers damage from incidents such as adverse weather, theft or fires.
- Medical Payments Protection: This covers medical costs of drivers or passengers in your vehicles.
- Uninsured/Underinsured Coverage: If a third party causes an accident, their liability insurance may not be enough to protect your company vehicles. This coverage can pay for your losses instead. It might also help you in the event of hit and run accidents. It won't penalize you for fault in the accident.
Many dealers carry in their policy an option called dealers open lot coverage. This will protect vehicles owned by the company (i.e. those on your lot). It can protect these vehicles when you drive them, or when you park them on display. This coverage can replace lost items following collisions, theft, or vandalism. Similar to business property insurance, this coverage specifically addresses the ownership risks of vehicles.
Any dealer should recognize the importance of a good garage policy for their operations. Therefore, if you need coverage, don't hesitate to contact Southwest Commercial Insurance. We'll help you set up the appropriate policy package for your satisfaction.